Transferring deposit from LA to DPS

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    Transferring deposit from LA to DPS

    Hello all. Advice please. After using a Letting Agent for 4+ years & been dissatisfied, I have decided to take over their role myself (the tenants remain the same throughout).

    2 questions please:

    1. The LA has verbally quoted a severance fee of £300 + VAT - is this usual? does anyone know is this usual and what the rates are?

    2. The LA currently hold the tenants' deposit but I have opened a Deposit Protection Service (DPS)account and it is to be transferred into the DPS acct. Question how is this usually done? Is it a straight transfer or does the money have to come to me and then onward to the DPS? I know there is a time limit.

    Many thanks

    #2
    Originally posted by lovelylandlord View Post
    Hello all. Advice please. After using a Letting Agent for 4+ years & been dissatisfied, I have decided to take over their role myself (the tenants remain the same throughout).

    2 questions please:

    1. The LA has verbally quoted a severance fee of £300 + VAT - is this usual? does anyone know is this usual and what the rates are? If it is a penalty on your removing business from them then it's probably unfair and unenforceable. If you were not advised of this from when you first engaged them, it's phooey!

    2. The LA currently hold the tenants' deposit but I have opened a Deposit Protection Service (DPS)account and it is to be transferred into the DPS acct. Question how is this usually done? Is it a straight transfer or does the money have to come to me and then onward to the DPS? I know there is a time limit. You can only do this with the permission of your tenant as it's their money. They must instruct the agent in writing to release it to you. Make sure you provide all the peripheral documentation and re-serve the PI.

    Many thanks
    You don't say why you are "dissatisfied"; have they breached your terms of business agreement?
    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.

    Comment


      #3
      My agent sent me a cheque payable to the DPS. It remained under TDS until the cheque was cashed by DPS at which point they took over protection.

      Severance fee will be whatever you agreed in the contract.

      Comment


        #4
        Thanks Paul f. You mention re-serving all peripheral documentation and re-serving the PI - not sure what a PI is please?

        Enjoy this fabulous weekend sunshine!

        Comment


          #5
          You can only do this with the permission of your tenant as it's their money. They must instruct the agent in writing to release it to you. Make sure you provide all the peripheral documentation and re-serve the PI.
          Does the position not depend on whether the deposit was paid to the agents as stakeholder or agent for the landlord?

          Comment


            #6
            Originally posted by lovelylandlord View Post
            not sure what a PI is please?
            It is this document.

            http://www.depositprotection.com/doc...-custodial.pdf

            Comment


              #7
              Originally posted by Mrs Mug View Post
              The 'terms and conditions' also form part of the PI.

              Comment

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