Rental deposits in Scotland are now protected, meaning landlords and letting agents who are in receipt of a tenancy deposit have to ensure they are placed in to an approved deposit scheme.

The legislation is also retrospective, meaning that existing deposits where there are ongoing tenancies must be protected, alongside deposits for new tenancy agreements. This new legislation is compulsory and if not complied with landlords and letting agents can face legal action with fines up to three times the deposit paid by the tenant.

Landlords and letting agents must also begin providing ‘prescribed’ information to tenants.

FCC Paragon, a leading tenant referencing company in the UK, are providing landlords and letting agents with an attractive substitute to the current available deposit schemes. With their alternative landlords and letting agents do not have to take a deposit from the tenant. Instead, they pay a one off fee for the Smart Deposit Solution product.

Smart Deposit Solution is a warranty product which was developed by FCC Paragon in recognition of the growing legislation which landlords/letting agents have to adhere to and the increasing cost of living which may mean tenants can't afford the upfront cost of a deposit.

Bryn Cole, Managing Director of FCC Paragon personally came up with the concept back in 2010 and comments:

“With our guarantee, once the tenant has successfully passed the full referencing process, they pay a one off fee which allows them to move into a property without having to find a large, sometimes unaffordable upfront sum.

The landlord is then provided with a Smart Deposit Solution warranty contract which covers them for any damage to the property, up to a maximum of 2 months rental value, and the final month's unpaid rental if the tenant should leave not having paid this, without them having to worry about holding a tenant's deposit.

Not only do both the landlord and tenant benefit, the managing agent avoids having to place a deposit in a costly national scheme and the property can be advertised to a wider range of prospective tenants.”

The model has been well received by agents in the UK with a large number who have switched from their current provider.

For further information on FCC Paragon’s Smart Deposit Solution, please visit www.fccparagon.com or call 0844 375 604