Deposit insurance schemes

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    Deposit insurance schemes

    Does anybody here use insurance backed shemes rather than custodial schemes? If so could anybody supply with some rough figures on costs to secure each deposit with the scheme, what are the main pitfalls over custodial etc

    Thanks in advance!

    #2
    http://bfy.tw/Ev1G
    "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

    What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

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      #3
      Very clever Wanna. A rent of £1400 pcm attracted a 1 off payment of £22.20 and are rent of £750 is the same price. This is with the DPS Custodial Scheme

      I haven't found a pitfall yet. I am in control of the deposit so if there are damages it would pay the tenant to negotiate with me if they want a refund part or all.
      Last edited by Interlaken; 08-11-2017, 14:18 PM. Reason: addition



      Freedom at the point of zero............

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        #4
        Originally posted by Interlaken View Post
        I haven't found a pitfall yet. I am in control of the deposit so if there are damages it would pay the tenant to negotiate with me if they want a refund part or all.
        The problem that keeps coming up here is that people don't realise when the insurance is expiring (typically renewals or transitions to periodic tenancies) and end up with unprotected deposit.

        According to https://www.mydeposits.co.uk/wp-cont...nd-Damages.pdf the landlord is expected to refund the undisputed part of a deposit immediately. The insurance schemes are still subject to the same sort of dispute resolution processes.

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          #5
          Originally posted by Wannadonnadoodah View Post
          Exactly what I was thinking.


          The advantage of using an insured scheme is that you have the physical funds in your (completely separate, ring-fenced, not-to-be-touched) deposit account. You will earn any interest* from it and you will be able to get the money to whoever’s entitled to it much quicker once you have agreement from all parties.

          The downsides, as mentioned above, are that it usually costs more (or costs at all) and you have to be on the ball with regard to renewals.

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            #6
            Originally posted by HantsAgent View Post
            you have to be on the ball with regard to renewals.
            and when you think of the potential financial risk of an unprotected deposit in comparison to the "benefits" of the amount of interest you'll earn over the tenancy, for many that isn't worth the risk of an insurance-based scheme. Letting property is risky enough already.

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              #7
              Originally posted by HantsAgent View Post
              You will earn any interest* from it
              You probably shouldn’t.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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                #8
                Originally posted by jpkeates View Post
                You probably shouldn’t.
                Provided you make this clear in the tenancy, there is no problem.

                I forgot the footnote, which was supposed to read “HAHAHAHA!!!”

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