New tenants on LHA- Council paying their deposit

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    New tenants on LHA- Council paying their deposit

    New tenants have moved in - they are receiving LHA and the council has agreed to pay the deposit. After 3 weeks, i have finally received the deposit from the Council and shall be putting it in a TDS. My question is, i am assuming i will put the Council as the "tenant" as i am receiving the desposit from them and will need to return it to them. But if i need to make deductions, do the Council just accept these as long as i have an inventory etc or do my actual tenants need to be involved as well? I don't see how this will actually work?

    #2
    Don't get confused! The LA are paying the deposit and it should be noted on your AST as such. The LA are not your tenants and all it will be responsible for is the payment in respect of a breach by the tenants at the end of their tenancy where you suffer a loss, and you will have to submit a detailed assessment and quotations. If the amount of dilapidations exceeds the deposit, you have to recover any excess from the LA.

    Be careful how you draft your AST as you seem to be a little rusty on this.
    The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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      #3
      Thanks for your reply Paul. I have stated on the AST that the LA shall be providing the deposit. I was wondering about the Tenancy Deposit Scheme. I will need to register this deposit but was wondering if there is anything that shall be different because its the LA and not the actual tenants. But i guess if i have detailed inventory that at the end of the tenancy if i have to deduct anything from the deposit, the LA won't have a problem with this.

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        #4
        Deposit Alternative

        I have found a great alternative to deposits and the TDS. Gives the landlords the equivalent of 3 months rent as deposit, plus £5k toward court cost if need be. Starts from £75 for 6 month bond paid for by tenant and if need to claim a lot easier than going through the Deposit Schemes. Also reference the tenants free of charge for you. Works well for tenants on LHA too and saves any of this confusion. Check it out on www.tenantperformancebond.co.uk

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          #5
          And your connection with this product is...?
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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            #6
            Not connected in any way. I'm an agent in Ayrshire in Scotland using this. Find it both a benefit to the tenant as no chance of being ripped off by landlord or agent, gives additional protection to the landlord, means I don't need to hold deposits and if need to claim it's so simple.. just a easier alternative and one step ahead for when the TDS finally comes in up here..

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              #7
              Yes, but Scottish law is quite different from in E&W. Dealing with deposits is therefore also different.
              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
              4. *- Contact info: click on my name (blue-highlight link).

              Comment


                #8
                Tenant Deposit Bond is supplied by and English Company and as only a few scottish agents using it I had to supply copies of Tenancy Agreement etc so could be agreed by underwriters prior to us using it.
                Deposit Schemes supposed to have been introduced up here last year but due to some issues down south not been done yet, but will come in.
                I just think this option is a safer, easier, option all round and well worth any agent or Landlord looking into. Might not suit everyone, but is definately a bonus when tenants are struggling to come up with rent and deposit, (which is becoming more common nowadays) and saves having to rely on Council Deposit Schemes or Tenants having to apply for Loans etc to be able to move house.

                Comment


                  #9
                  Originally posted by Paul_f View Post
                  The LA are paying the deposit and it should be noted on your AST as such.
                  Because? Remember that they are not party to the AST between L and T only.
                  JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                  1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                  2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                  3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                  4. *- Contact info: click on my name (blue-highlight link).

                  Comment


                    #10
                    Originally posted by Paul_f View Post
                    If the amount of dilapidations exceeds the deposit, you have to recover any excess from the LA.
                    on what legal basis are LA responsible?
                    PAUL GIBBS, solicitor, Jacobs & Reeves. My comments on this forum are correct to the best of my knowledge and belief. No responsibility or liability is accepted by reason of reliance upon such comments. This disclaimer would not apply to direct clients of Jacobs & Reeves where there is a valid retainer in place and I would be happy to confirm any advice if formally instructed. . Jacobs & Reeves now offer a fixed fee possession service.

                    Comment


                      #11
                      Originally posted by Paul Gibbs View Post
                      on what legal basis are LA responsible?
                      Perhaps under Scottish law, the subject matter on this thread?
                      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                      4. *- Contact info: click on my name (blue-highlight link).

                      Comment

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