Bond or No Bond?

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    Bond or No Bond?

    Has anyone considered not taking a bond from a tenant?

    With all the bond related paperwork landlords must get 100% correct, all the hoops that have got to be jumped through to prove to DPS (or other) that your claim is legitimate, the new five weeks rent equivalent rule, has anyone just thought it might be easier to go without a bond altogether and charge a higher rent instead?

    Just interested in peoples thoughts

    #2
    Lots of landlords dont bother any more and if youre not able to be 100% on top of all the requirements then this may be the right choice. Ive only had to claim once from the deposit for cleaning and the tenant readily agreed, but I know Ive benefitted from the psychological effect of having a deposit because I often see tenants taking great care not to mark any furniture or walls and usually cleaning very thoroughly at the end. The fear of deductions seems to work much better than the reality.

    Comment


      #3
      In theory it may be better to go for a higher rent without a deposit, but most likely depends on the area and whether or not a T is willing to pay more comparing to other properties, as the first thing they will see on an advert is the rental amount not that there is not deposit.

      I personally have always taken a deposit, but my properties are also repainted and provided basic equipment. I have known other LL's who just provide an empty property, no white goods, beds, etc the T then needs to provide everything else. This may be the way things will start to lead towards, in some parts of the country, and avoids any real need for maintenance, replacing things, and end of tenancy check outs.

      Comment


        #4
        I no longer take deposits, I don't think they are worth the hassle tbh. As you say there's too many hoops to jump through and the penalties are grossly disproportionate. If the worse comes to the worse and you need to make a claim you have even more hassle trying to prise money away from the deposit services. I'm personally happy to take the risk.

        Comment


          #5
          Originally posted by Kape65 View Post
          I no longer take deposits, I don't think they are worth the hassle tbh. As you say there's too many hoops to jump through and the penalties are grossly disproportionate. If the worse comes to the worse and you need to make a claim you have even more hassle trying to prise money away from the deposit services. I'm personally happy to take the risk.
          This is how my thinking is going, its too stacked in the tenants favour.

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