Protecting deposits

[reallymadwoman]

Quick question for the father-in-law as a first time landlord.

 

Is there any particular difference between the various deposit protection schemes, or can he choose one at random?

[Webranger]

One scheme is for agents and "large" landlords, forget that one.

 

Tenancy Deposit Scheme is one where you pay the deposit to them. I've had some dealings with them and want no more.

 

MyDeposits.co.uk is where you get them to guarantee the tenant that they will get the deposit returned. It costs you £30, you do it online. Problem solved.

[reallymadwoman]

Thanks

[Steve__M]

The scheme that holds onto the deposit is the "Deposit Protection Scheme" (DPS), not Tenancy Deposit Scheme.

 

mydeposits also has a £57 joining fee and an annual membership of £15 (though they say they usually waive it !?) in addition to the £30 fee, which has put me off in the past.

 

I use DPS which don't charge a fee, but as I've been lucky with my last two lots of tenants, I've always just returned the full deposit. So I've not had any proper dealings with them.

 

Psychologically, I find it is easier to return money I'm not holding onto than to return money that has been resting in my savings account making me feel nice and rich!

[Steve__M]

PS. while I don't wish to say that one scheme is better than another, this mydeposits nightmare is an eye-opener:

 

http://www.swarb.co.uk/phpbb/viewtopic.php?f=20&t=7728

[Webranger]

Steve_M: that report is certainly frightening. My objection to DPS (yes, I got the name muddled) is that you can never have the deposit available to give tenant on the day they move out AND my experience when I had two tenants who had been found by an agent who used that scheme. In one case the tenant and I agreed on a split of the deposit and in the other the ex-tenant refused to give me the ID no. and didn't reply to DPS mail. In both cases it took 10 weeks to get the money.

 

Incidentally, I sued the latter tenant for rent arrears which with court costs amounted to over £2,000 and then went for earnings attachment. I got it - at £40 per month. Over 4 years it will take!

 

At least with MyDeposits I hold the money. But this report is so bad I'm going to ask them to comment, at least in general terms.

[Kentish Lass]

I can't actually comment on the 3 deposit schemes - my agent deals with the deposit using the agents' scheme.

 

However, the link shows how meticulous LL's need to be about inventories. Better to use an independent inventory clerk for check-in and check-out - and always remember that the deposit schemes always seem to favour the tenant!!

 

Another point from the link is the response given -

 

"I'm very sorry to inform you that everything goes pear-shaped in your first sentence. The Housing Acts 1988 and 1996 are quite clear that the minimum term for an Assured Shorthold Tenancy is SIX months. There is no such thing as a five-month AST."

 

This is rubbish. An Assured Shorthold Tenancy can be of any length agreed between the parties - the catch is that regardless of the length of the agreed tenancy, LL cannot issue a s.21 notice to regain possession less than 6 months from the start date of the tenancy.

 

E.g., I was asked to let my flat (which was for sale) to someone for 3 months while they were looking for somewhere to purchase - they said they would be happy to show people around etc. and the extra cash would have been handy - but I declined. If this person had decided they needed to stay longer - and I had a purchaser for the flat - I would not have been able to regain possession in less than 6 months - a buyer is not likely to hang around for that.....

 

Oh - and Webranger - at least you are getting your money!! Well done.