Can L charge administration fee for protecting deposit?

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  • Can L charge administration fee for protecting deposit?

    My landlord charged me a £60 "Administration Fee" to protect my deposit.

    Can he do this?

    Thanks

  • #2
    Has it been specified that this is a charge solely for the deposit protection or is it an admin charge to include other aspects?
    Nothing in HA2004 says it is illegal to do so though i think there may be inferences in indiv t&cs to the contrary
    Fair dos I say - it is a service for you the T rather than the LL after all.

    Comment


    • #3
      Originally posted by sherifffatman View Post
      Has it been specified that this is a charge solely for the deposit protection or is it an admin charge to include other aspects?
      Nothing in HA2004 says it is illegal to do so though i think there may be inferences in indiv t&cs to the contrary
      Fair dos I say - it is a service for you the T rather than the LL after all.
      It was solely for the deposit protection.

      And I disagree, the service also protects the LL as well. If the money isnt protected, the LL can cause as much damage as he likes, and the LL would still have to pay back the full deposit.

      Comment


      • #4
        Some landlords charge tenants for protecting deposits, some landlords pay to protect deposit themselves. Swings and roundabouts.

        Comment


        • #5
          Compared to the hundreds of pounds some letting agents charge tenants, this £60 does not seem unresonable. Though I charge £35 and don't charge for subsquent years renewals....

          Though, I have been recommended to call it Admin fee rather then a Deposit fee (for legal reasons). Also, your landlord may be charging you more if they carried out a credit check.

          To be honest, I am annoyed at this deposit scheme (not at the idea of the scheme but how it works), because most shrewd tenants withhold the last month's rent and tell the landlord go use the deposit!. So what is the point of the scheme? It does nothing to benefit protect the landlord. It should be a 2 way street!

          Comment


          • #6
            Originally posted by rajeshk4u View Post
            To be honest, I am annoyed at this deposit scheme (not at the idea of the scheme but how it works), because most shrewd tenants withhold the last month's rent and tell the landlord go use the deposit!. So what is the point of the scheme? It does nothing to benefit protect the landlord. It should be a 2 way street!
            I'm charging 6 weeks rent for the deposit to hopefully avoid this scenario.

            Comment


            • #7
              Originally posted by GillsMan View Post
              I'm charging 6 weeks rent for the deposit to hopefully avoid this scenario.
              So they don't pay you the last six weeks' rent, instead - or more likely, the last two months'....
              '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

              Comment


              • #8
                Originally posted by mind the gap View Post
                So they don't pay you the last six weeks' rent, instead - or more likely, the last two months'....
                Good point. I have zero experience, but I'd expect that you're more likely to see people saying "take my last month's rent out of the deposit" than not paying anything at all for the last two months. That's just a guess though, you guys have a far more experience than me, so I expect you'll tell me that's wrong!

                Comment


                • #9
                  Originally posted by GillsMan View Post
                  Good point. I have zero experience, but I'd expect that you're more likely to see people saying "take my last month's rent out of the deposit" than not paying anything at all for the last two months. That's just a guess though, you guys have a far more experience than me, so I expect you'll tell me that's wrong!

                  Not really, I just thought there was a fatal flaw in your logic there!

                  In the end, if they are the sort of tenants who are hell-bent on are getting away without paying for any damage done, you are going to end up taking them to court/ deposit scheme adjudication. A boring fact of life, I'm afraid - there are no quick fixes.
                  '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

                  Comment


                  • #10
                    Originally posted by mind the gap View Post
                    .....there are no quick fixes.
                    Term rent up front AND a dep equal in val to 2 mths rent works, also a fully ref G and lots of contact details for chasing debt !
                    A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.
                    W.Churchill

                    Comment


                    • #11
                      Originally posted by Rodent1 View Post
                      Term rent up front AND a dep equal in val to 2 mths rent works, also a fully ref G and lots of contact details for chasing debt !
                      True in principle...but it is a tiny minority of tenants - usually (a) foreign students whose governments or rich parents foot the bill for their study abroad or (b) members of Triads (according to this forum!), who, in practice, can afford the full fixed term's rent up front. Most cannot, so it would be unrealistic to ask for it. You risk losing tenants to other landlords if you insist on all those terms.

                      Guarantors, etc - yes, agreed.
                      '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

                      Comment


                      • #12
                        I guess a LL can charge whatever they like for whatever they like, provided it's in the tenancy agreement and it's up to the tenant to accept the costs, negotiate or decline isn't it? Basic contract principle of offer and acceptance?

                        Here's an extract from particulars on a property I've seen up for rent:

                        APPLICATION FEE – An application fee of £95 (inclusive of VAT) is payable for a single applicant. Where an application is made by two or more persons, then an additional £35.25 (inclusive of VAT) will be charged per additional person. Completion of the application form is not the guarantee of a Tenancy. A Tenancy will only be granted upon the applicant passing the referencing system, the Landlord having vacant possession of the property, subject to the contracts being signed and the rent and deposit being received in cleared
                        funds.

                        AGREEMENT AND INVENTORY FEE - £300
                        (inclusive of VAT) on both the original tenancy and upon termination of the Tenancy.

                        The property has sat empty for some time....

                        Comment


                        • #13
                          Originally posted by mind the gap View Post
                          True in principle...but it is a tiny minority of tenants - usually (a) foreign students whose governments or rich parents foot the bill for their study abroad or (b) members of Triads (according to this forum!), who, in practice, can afford the full fixed term's rent up front. Most cannot, so it would be unrealistic to ask for it. You risk losing tenants to other landlords if you insist on all those terms.

                          Guarantors, etc - yes, agreed.
                          Approx 5-10% of my T pay 6 mths up front.
                          A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.
                          W.Churchill

                          Comment


                          • #14
                            Originally posted by Rodent1 View Post
                            Approx 5-10% of my T pay 6 mths up front.
                            Obviously Triad gang members then
                            '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

                            Comment


                            • #15
                              Originally posted by awt19 View Post
                              My landlord charged me a £60 "Administration Fee" to protect my deposit.

                              Can he do this?

                              Thanks
                              He can ask for what he wants, but you don't need to agree

                              In fact, with rents plummeting at the moment, you should really push for a reduction in rent rather than accepting punitive charges for something they should already be covering if they are at all professional

                              Just show him the abundance of properties on rightmove and tell him you're happy to find somewhere that doesn't apply a TDS handling charge

                              Comment

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