Process Map of Guarantee Model (with cleaning)
Process Map of Guarantee Model
: Whilst securing a house, tenants (all tenants, mix tenants, no tenants?) opt for Deposit Replacement Guarantee (DRG) instead of typical deposit.
Tenants each pay £5 a month membership fee
This accrues into a 'bunk-held" pot that pays for cleaning at the end of tenancy. Landlord is therefore covered up to £50 / tenant for any cleaning costs incurred (we have to have at least some markup).
All money received that is not paid out to landlords for cleaning is kept by BUNK. BUNK use this for:
b) To go towards the cost of mediation (third party or in house - unknown cost).
Tenancy comes to an end. Tenant receives a notification.
Tenant receives notification that the landlord has no issue with how the house was left, and there is no cost to them (they also receive this message if the landlord makes a claim, but it is completely covered by the cleaning arrangement).
All tenants in the house auto-receive some kind of positive feedback on their profile.
Tenant receives notification that the landlord has put in a deposit claim (all tenants).
See from landlord for further claims details
Landlord puts in the amount desired for the total deposit amount when they upload their property. This represents 'the amount that they want to be protected up to'. If they state that a deposit is £500 for a given house, they will either have usual deposits of £500 taken from tenants, or a BUNK guarantee up to £500, depending on tenant choice of product. The process is the same for the landlord, regardless of tenant product.
The figures put in for deposit amount when property is uploaded is then automatically populated into the tenancy agreement generation / upload, when both parties reach that stage.
Tenancy is ongoing. Landlord takes inventories on tenant arrival and departure.
Tenancy has finished. Landlord makes final inspection and notes the necessary costs associated with the property. When TA is over they are prompted with a message that says... "have you done your final inventory? - you have 7 days from end of tenancy to make a claim against tenants".
Scenario a) If a landlord says they are satisfied with the state of the property, or if no claim is made within 7 days of tenancy ending, then automatically ping tenants a message saying landlord was satisfied with the state of the house. Automatically ping positive feedback to tenants and landlord. Add data to rental profile/record?
Scenario b) Landlord wishes to make a claim. They state the price for their total claim. They categorise the individual aspects of the claim. If the categories only include cleaning and the sum is less than (£50 cleaning coverage * no. of tenants), then the sum is instantly paid to the landlord.
Landlord must have to supply BUNK with some kind of proof of cleaning, otherwise every landlord would claim max cleaning every time. In this case, payment won't be immediate, but subject to sufficient proof of cleaning.
Scenario c) Landlord wishes to make a claim. They state their price for the total claim. It either includes categories other than cleaning, or the total exceeds the cleaning 'reverse excess' (e.g. £50 * no. of tenants). The claim is pinged to all tenants.
Scenario c) i) The tenants accept the claim. The landlord is paid out straight away.
BUNK has to pay the landlord the claim total immediately, and is responsible for recuperating the (accepted and legally binding) sum from the tenants. This will be done by direct debit, and has been explicitly agreed by tenants with the acceptance of the liability in step c)i). The only problem will arise if the direct debit bounces. BUNK will then be responsible for contacting the tenant and chasing the outstanding fee.
Scenario c) ii) The tenant comes back with a counter offer or comment.
The landlord can openly put forward case with tenant through comments or BUNK chat. Both parties can share/upload evidence. The landlord has the opportunity to revise their claim (go back to scenario c) or if no agreement is made go to c)iii)
Scenario c) iii) After x amount of days, if no agreement is reached, the option to raise a dispute becomes available to either party. This will start the BUNK adjudication process. Whoever wants to raise the dispute has to pay a fee of £100, which is returnable at BUNK's discretion, and subject to BUNK's satisfaction that the dispute was not raised dubiously / trivially. In accepting BUNK as an independent and mutually approved adjudicator, both parties accept that whatever 'is agreed' between parties will be the total liability incurred on the party(s) deemed liable.
Dispute isn't raised: If no action is taken after x amount of days then the party that failed to respond is deemed to accept full liability of the claim in question.
BUNK has to pay the landlord the claim total immediately, and is responsible for recuperating the outstanding sum from the tenants. This will be done by direct debit, and has been explicitly agreed by tenants in the signing of the deposit replacement guarantee contract in stage 1. The only problem will arise if the direct debit bounces. BUNK will then be responsible for contacting the tenant and chasing the outstanding fee.
Dispute is raised by either landlord or tenant.
Scenario d) The landlord's claim is above the total BUNK coverage amount (deposit fee set by landlord * no. of tenants). If the tenant accepts the amount we ping the money straight to the landlord, as usual. If they can't come to an agreement we advise them to take legal action outside of BUNK (i.e. small claims court) as it extends past our cover and the realms that we can legally advise on.
In such a scenario, a flag should come up to BUNK so we are aware of a potential problem.
Landlords are encouraged to upload inventories, with push notification and start and end of tenancies. These will appear in my documents section of tenants profile.