For landlords, the latest figures are showing a concerning trend – more tenants are ending their leases with unpaid rent, leaving you out of pocket.

According to new research from Reposit, a company that offers deposit alternatives, 17% of tenancies ended in 2024 with landlords having to reclaim more than five weeks’ worth of rent. This is a 4% increase from the previous year, meaning more landlords are struggling to get their money back.

The Cost of Living Crunch

So what’s going on? Well, experts believe the rising cost of living is a big factor. Tenants are facing higher bills and struggling to make ends meet, leaving some unable to pay their rent.

Cash Deposits Not Enough

Reposit’s data also highlights the problem with traditional cash deposits. These deposits are capped at five weeks of rent, which is clearly not enough to cover the increasing number of cases where landlords need to claim more than that.

Deposit Alternatives Offer More Protection

Ben Grech, the CEO of Reposit, said: “Our figures show cash deposits are now inadequate across a significant portion of the market, and this is only getting worse. This is why we’re seeing more landlords and agents choose to offer our FCA-regulated product, which provides landlords with eight weeks of cover.”

Good News for Landlords?

Although the number of tenants ending their leases with outstanding rent is growing, there’s some good news. Reposit found that almost half (49%) of all tenancy agreements ended with no costs incurred by the tenant.

What This Means for Landlords

The bottom line is that traditional cash deposits are no longer enough to protect you. Consider alternative options like Reposit, which offer more coverage and can provide peace of mind. With the cost of living crisis still biting, you need to make sure you’re fully protected.