Comparing the Different Tenancy Security Deposit Options - Is 5 Weeks Worth It?

For many landlords and letting agents, the traditional cash deposit has always felt like the safest option. It’s been the standard for years - you take some money up front, hold it until the end, and use it if there’s a problem.

But in practice, this model is more admin than assurance.

It ties up tenant cash, creates friction at check-out, and regularly leaves landlords out of pocket and without much recourse. Despite all the red tape, it rarely delivers what it promises.

There are also zero-deposit schemes on offer, which attempt to remove the tenant’s upfront burden - but they’re built more like financial products than protection tools. And when things go wrong, the landlord still has to chase the money.

That’s why we offer the Apex Deposit Alternative. It’s not a scheme and it’s not a pot of money - instead, given that we consider ourselves London's best guaranteed rent company, we take responsibility for the property’s condition and handle the post-tenancy works ourselves - including continuing to pay rent while those works are completed.

Let’s break down how each model actually works.

1. Traditional Security Deposit Options

   This is the model everyone knows: a tenant pays up to five weeks’ rent in cash at the start of a tenancy. That money is then locked away in a government-approved deposit protection scheme. Crucially, it’s not the landlord’s money. It can’t be used or touched during the tenancy, and it’s held in trust until the tenancy ends - there is no guarantee that the landlord will ever see this money.

   
   

   If there’s damage or cleaning required, more often than not the landlord must raise a dispute with the scheme and provide supporting evidence. This process can take weeks (sometimes months) to resolve, and in many cases the scheme will side with the tenant or reduce the amount awarded to the landlord. Even when the landlord wins, the payout often doesn’t cover the full cost of putting the property right.

   
   

   Meanwhile, the landlord has to pay for those works out of their own pocket, usually during a void period when no rent is coming in. If the damages exceed the five-week cap, the landlord has to take the tenant to small claims court.

   
   

   It’s compliance-heavy, time-consuming and rarely delivers a clean outcome.

   
   

2. Zero-Deposit Schemes

   These schemes are often positioned as a tenant-friendly security deposit option. Instead of paying a lump sum upfront, the tenant pays a monthly fee to a third-party provider, either for the duration of the tenancy or as a one-off non-refundable charge. Agents often receive a commission for offering these products.

   
   

   From a landlord’s point of view, these schemes don’t improve the core issue: if there’s a dispute at the end of the tenancy, the landlord still has to submit a claim and provide evidence. If the tenant refuses to pay, the provider may refuse to cover the cost, and the landlord may be forced to pursue recovery via court.

   
   

   The scheme isn’t a guarantee of payment. It’s a restructured version of risk - and the burden still ends up on the landlord if things get difficult.

   
   

3. Apex Deposit Alternative

   Apex do not pay deposits or sign up to zero-deposit schemes. Instead, we take a completely different approach.

   
   

   At the end of the tenancy, Apex steps in and handles any tenant-related repairs, damages and cleaning in line with fair wear and tear guidelines. We cover the cost of this work up to the equivalent of six weeks’ rent which is more than what’s permitted under a traditional deposit. And because it’s our responsibility, there’s no dispute process, no third-party adjudication, and no delay.

   
   

   The best part? We continue to pay rent to our landlord clients while the work is completed. That means no loss of income during the turnaround period, no upfront spend on maintenance, and no paperwork dragging on into the next tenancy.

At a Glance: Comparing the Three

Feature	Traditional Deposit	Zero-Deposit Scheme	Apex Deposit Alternative
Upfront cost to tenant	Up to 5 weeks’ rent	Monthly or one-off fee	None
Who holds the funds	Third-party scheme	No funds held	No funds held
Landlord repair coverage	Up to 5 weeks (capped)	Conditional on tenant paying	Up to 6 weeks, paid by Apex
Who organises the work	Landlord	Landlord	Apex
Dispute process	Landlord must evidence claim, may wait weeks	Similar to traditional process	No dispute – Apex takes responsibility
Rent during turnaround	Not paid	Not paid	Paid by Apex
Cashflow for landlord	Delayed – must pay upfront for works	Delayed – no upfront support	Immediate – works and rent covered
Agent/landlord experience	Admin-heavy, compliance risk	Uncertain claims process	Hassle-free, consistent outcomes

Why It’s Time to Move On From Cash Deposits

The traditional model no longer serves the people it was designed to protect. It ties up tenant money, complicates handovers, and leaves landlords out of pocket. Zero-deposit schemes shift the shape of the problem, but not the outcome.

Apex Deposit Alternative is built to address what actually matters: getting the property back into shape quickly, reducing the landlord’s exposure, and removing unnecessary delays and disputes.

No Deposit Doesn’t Mean No Responsibility

We understand the concern. For landlords who’ve always taken deposits, it’s natural to assume that removing them means removing accountability. A cash deposit has long been seen as a safety net, a way to make sure tenants look after the property and pay their rent.

But in reality, a deposit isn’t a guarantee of good behaviour, or even of financial protection.

Many landlords still face issues with damage, cleaning, or unpaid rent and more often than not, actually recovering costs from the deposit involves weeks of back-and-forth with a protection scheme. Often the scheme sides with the tenant or reduces the award. It’s not just frustrating, it’s slow, unpredictable, and rarely covers the full cost.

And here’s something often overlooked: if a tenant is just one month in arrears, the deposit is already wiped out. At that point, the landlord has nothing left to claim against for damage or cleaning. The safety net disappears the moment rent isn’t paid and yet the landlord still needs to cover the cost of works themselves.

With Apex Deposit Alternative, the dynamic is entirely different, because we are your tenant. We don’t pass risk down the line or hope subtenants behave. We take full responsibility for the condition of your property and for the rent.

If our properties aren’t maintained properly, we don’t get paid. Poor standards mean longer voids, lost income, and reputational damage - which we’re commercially incentivised to avoid.

And unlike a deposit, your rent is guaranteed. You’ll continue to receive rent even during turnaround works, and we’ll handle the cost of repairs or cleaning ourselves.

In addition, every time we change occupants, we carry out a full Apex M.O.T on your property:

• Preventative maintenance

• Minor repairs

• Decorative touch-ups

• Early fixes to avoid bigger issues later

It’s not about removing responsibility.  It’s about structuring the model so that maintaining your property is in our interest, not just yours.

If you’re a letting agent looking for smoother move-outs and faster relets, or a landlord tired of chasing after a pot of money you never really owned, we’d be happy to show you how this works.

Apex: Your Trusted Partner in Property Management and Guaranteed Rent

At Apex, we take the stress out of being a landlord. With our no-cost Guaranteed Rent Services, you can enjoy financial security while we handle all aspects of managing your property, from rental compliance to day-to-day management.

For more advice, support, or feedback, get in touch with us!

Call us on 0203 030 4241

Email on lettings@apexhousingsolutions.co.uk

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