Check-out Fee and Deposit Protection

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  • Check-out Fee and Deposit Protection

    Hi guys

    Just a quick question for you - a friend was told that if she wanted to renew her lease on the place she was renting she would have to pay to be part of the deposit protection scheme because that what the government says - that doesnt sound at all correct to me.

    Furthermore, when she left she was charged a £100 checking-out fee when nothing was actually done. She has checked her contract and it is hidden in there - she obviously should have checked it properly. Are such fee's commonplace and justified?


    Thanks

  • #2
    Commom Place - No
    Justified - No
    Obliged to pay - Yes ( As that is what is says in the contract ) You could of course challenge this in court.

    Comment


    • #3
      L has to handle any AST deposit in accordance with an approved sceme, true, but T does not have to pay anything for this privilege.
      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


      • #4
        Originally posted by Colincbayley View Post
        Commom Place - No
        Justified - No
        Obliged to pay - Yes ( As that is what is says in the contract ) You could of course challenge this in court.
        (Crossed with my last post)

        L has to deal with deposit even if:
        a. Agreement unfairly demands payment of extra fee from T; and
        b. T fails to pay that fee.
        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


        • #5
          We make a charge in circumstances where we have a tenant who has had a periodic tenancy since before 6th April 2007 and now decides they want a new agreement. As a rule of thumb we never renew our agreements and allow them all to become periodic so obviously if we grant a new one now we have to register the deposit. Why should we foot the cost of this when it's the tenant who wants a new agreement.

          Comment


          • #6
            Well - fair enough, but you must be aware that if you use the TDS there is no charge to protect the deposit - you just loose out on the interest that yu could otherwise earn on that deposit!

            P.P.
            Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

            Comment


            • #7
              Yes I agree, we use the DPS though so are charged for each deposit we protect

              Comment


              • #8
                I was sure i read somewhere that leagally tenants were not allowed to be charged any fees extra, conected to the protection of the deposit, but the landlord could be charged.

                Comment


                • #9
                  Originally posted by johnboy View Post
                  I was sure i read somewhere that leagally tenants were not allowed to be charged any fees extra, conected to the protection of the deposit, but the landlord could be charged.
                  That rings a bell!

                  However, it wouldn't stop a LL dressing the fee up as something else!!

                  Comment


                  • #10
                    Originally posted by johnboy View Post
                    I was sure i read somewhere that leagally tenants were not allowed to be charged any fees extra, conected to the protection of the deposit, but the landlord could be charged.
                    I've looked carefully at the Housing Act 2004 but I cannot locate such a provision. Perhaps it's buried in a Statutory Instrument.
                    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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