Up-front rental deposits service launches to help cash-strapped tenants during the crisis

LandlordZONE parent company Hamilton Fraser has today launched Ome, a ground-breaking alternative to up-front rental deposits.

Ome offers tenants a monthly subscription-style service which allows them to rent a home without paying a huge deposit whilst also protecting a landlord’s need for financial security.

Ome’s mission is to help raise industry standards by introducing greater choice for renters based on their individual preferences.

It also promises to provide a solution for those seeking a replacement to a traditional cash deposit that can adapt to tenants individual circumstances.

Ome will also replaces the need for a large deposit at the beginning of a tenant as well as at the end, eliminating the need for tenants to effectively two deposits on the go.

Based on data from Ome’s sister company, mydeposits, the average deposit over the past year was £1,299.

With the average net monthly wage currently £2,059, this requires the average tenant to fork out 55 per cent of their monthly wage just to put down a rental deposit; rising to 69 per cent for those who have been furloughed on 80% pay.

Instead of paying an upfront deposit or fee, Ome will enable some 86 per cent of tenants to pay less than £9 per month with a small one-off £30 account set up cost.

Tenants are always responsible for any damage to the property and payment of rent and bills, and if this issue arises, they can deal directly with their landlord via an app with the support of a Hamilton Fraser’s resolution team, who operate the Property Redress Scheme and the mydeposits tenancy deposit scheme.

Lower fees

Landlords and agents benefit from lower deposit arrangement fees and less risk of deposit-related fines; because no deposit money will have been exchanged.

Ome will also be launching a full suite of tech plug-ins that will allow larger lettings agencies, digital platforms and property management software providers to automate the Ome journey for their landlords and tenants – with a handful of early candidates already lined up.

 “We’re really excited to launch what we believe is a brand and product that will set and define the new standards expected from a deposit replacement scheme,” says co-founder of Ome, Matthew Hooker.

“We anticipate Ome becoming a platform for a multitude of deposit and tenancy management solutions so we cannot wait to enhance our already competitive offering.”

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