Tenancy Deposit Schemes (TDS)

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    #1

    Tenancy Deposit Schemes (TDS)

    I have received notification from my letting agent advising the deposit I hold needs to be held in a Custodial or Insured Scheme. They are a member of TDSRA and want me to transfer the deposit to them. For this 'service', they want to charge me £11.75 for registration with ARLA and a further £117.50 service fee! I am certain I must be able to meet the new legislation in this regard by going directly and not incurring this 'service' charge. Can anyone advise me as to what schemes are available for me to contract with directly.

    Many thanks in advance
    Tags: None
    #2
    Originally posted by kduplessis
    I have received notification from my letting agent advising the deposit I hold needs to be held in a Custodial or Insured Scheme. They are a member of TDSRA and want me to transfer the deposit to them. For this 'service', they want to charge me £11.75 for registration with ARLA and a further £117.50 service fee! I am certain I must be able to meet the new legislation in this regard by going directly and not incurring this 'service' charge. Can anyone advise me as to what schemes are available for me to contract with directly.

    Many thanks in advance
    As far as I am aware deposits taken for tenancies that began before the legislation comes in are not subject to the regulations.
    Last edited by Energise; 03-04-2006, 20:07 PM. Reason: Changed it a bit

    Comment

      #3
      Originally posted by Energise
      As far as I am aware deposits taken before the legislation comes in are not subject to the regulations.
      Correct!!.Desposits taken before the new legislation comes into force are exempt.
      Disclaimer:I have over 30 years experience in housing(both social and private) as an EHO and Building Surveyor.I am also a certified expert witness having spent the last 15years working in housing litigation.The advice I give is from experience in working for various Local Authorities and how the law is interpretated.Housing Law is a minefield and is continually being amended if in any doubt you should consult a solicitor or someone of equal legal standing.

      Comment

        #4
        That's my understanding, but for future reference as the tenancy will come to an end after the October deadline. From that point on I will need to meet the ongoing regulations. I don't want to utilise the Agencies service but would rather go private. This must be possible since I am not obligated to use an agent to rent out the property.

        Comment

          #5
          Originally posted by kduplessis
          That's my understanding, but for future reference as the tenancy will come to an end after the October deadline. From that point on I will need to meet the ongoing regulations. I don't want to utilise the Agencies service but would rather go private. This must be possible since I am not obligated to use an agent to rent out the property.

          If you allow the tenancy to continue as a statutory periodic you do not have to do anything with the deposit, if issue your tenant with a new agreement the deposit will fall under the new regulations.

          BasiC FAQ.

          http://www.odpm.gov.uk/index.asp?id=1163570

          Comment

            #6
            Have the organisers of the schemes been chosen yet?
            And can I charge the tenant if I choose an insurance based scheme?

            Comment

              #7
              Can I put in a plug here for the various rent deposit schemes around the country (NOT TENANCY DEPOSIT SCHEMES) which help people on low incomes get into private accommodation by giving the landlord a written bond (or in some cases a cash bond I believe). I work for one of these schemes in York and we are hoping landlords might be more prepared to use the scheme when the law changes, since it won't cost them anything and, in our case at least, they get the backup of a tenancy support worker and help with processing HB.

              Comment

                #8
                Originally posted by Tweedle Dum
                Have the organisers of the schemes been chosen yet?
                And can I charge the tenant if I choose an insurance based scheme?
                Have a look here (December and January)

                http://www.landlordzone.co.uk/BlogNe...er-archive.htm

                Comment

                  #9
                  i'm sure i read something to the effect of "a dim view will be taken of agents using the tenancy deposit legisaltion to make a profit", i think it was on the arla webite or similar.

                  charge me £11.75 for registration with ARLA and a further £117.50 service fee!
                  sounds like profitering to me!

                  Comment

                    #10
                    1. The TDS is currently a voluntary scheme operated by ARLA agents mainly.
                    2. The TDSRA when it comes into force will be a free service to tenants.
                    3. Regualted agents will need to undergo a complete revamp of their administration as the deposit for new tenancie4s only will need to be placed in a custodial scheme or an insured scheme.
                    4. At the moment details of the custodial scheme have not been announced, and ARLA/NAEA/RICS have put in a joint bid to operate the insured scheme. It will cost agents about £325 per branch office, and they will have to have all sorts of insurances in place to qualify.
                    5. You can find out more from www.tds.gb.com
                    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

                      #11
                      From LandlordZone Newsletter

                      The second type of scheme is the insurance scheme. This will probably be more attractive to most private landlords.

                      Under this type of scheme, the landlord keeps the deposit. Then, if at the end of the tenancy there is a dispute, the landlord will have to pay the deposit amount into the insurance scheme.

                      This will then be held until both parties come to an agreement - with the amounts agreed being paid out by the administrator of the scheme.
                      I'm wondering if for tenancies commencing between now and October private landlords should just take the deposit as usual or in receipting the deposit make some reference to the new legislation.

                      For private landlords the proposed charges for the insurance scheme are landlords an additional and unknown expense. I do hope that the bodies organising the insurance are subject to fair trading controls that prevent them "fixing" the price for individual landlords way above that they charge to their own members.

                      For good landlords the additional costs of the scheme are merely subsidising the bad landlords and bad tenants. Should the costs be passed onto the tenant by way of an additional administrative charge plus the actual premium?

                      I'm still unclear about the situation where the AST agreement allows the deposit to be utilised to cover rent arrears. If the deposit is used to cover rent arrears could it be argued that there is no deposit in dispute?

                      What is the situation if a County Court Small Claims action is taken to cover rent arrears and damages that exceed the deposit? If it is clearly indicated on the County Court claim that the tenant's deposit is being held to meet part of the alleged claim would that negate the need to place the money in the insurance scheme?

                      In principal should a quango or insurance scheme have precedence over the jurisdiction of a County Court?
                      Last edited by Worldlife; 05-04-2006, 06:02 AM.
                      Vic - wicked landlord
                      Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
                      Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

                      Comment

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