Tenancy deposit schemes

[caroline7758]

I've mentioned before that I work on a Bond Scheme run by a voluntary sector organisation. We are wondering whether the introduction of tenancy deposit schemes will increase the number of landlords willing to accept our bond, given that it daoesn't cost anything. Does anyone out there have any views on this?

[caroline7758]

Does anyone at least have an idea why nobody has responded to this thread? It's not the first time I've tried to do a bit of research on this topic and got no response whatsoever! I know there are people out there who use Bond Schemes in various areas.Do most landlords avoid them because they think if a tenant needs help with a bond they are unlikely to pay the rent?

[Ericthelobster]

Does anyone at least have an idea why nobody has responded to this thread?

Speaking purelyfor myself, it's because I haven't the faintest idea!

Does that help?

[justaboutsane]

Caroline, as you know from previous postings I am a fan of these schemes so long as they are managed well.

We are currently looking into helping the scheme we use most to expand as we are so impressed and have a property that would benefit from the scheme being expanded!

[islandgirl]

I assume this is not linked to the new (stupid) legistlation but is a way to ensure that if a Landlord takes on a HB tenant who cannot afford a deposit for example the deposit will be provided by the voluntary organisation? I would be happy to work with the organisation but only if I were actually given the deposit to hold (which I doubt would be the case). Otherwise I could forsee a bad tenant leaving me with debts and damage and there being some small print which meant that I would not get the amount of deposit agreed. Also many Landlords are nervous about the possiblity of having to evict a HB tenant (ie the council will say wait until Baliffs). I do not think the scheme will change this. Whether I would use it would depend a lot on the prospective tenant and their circumstances and how sure I was that if there were to be a problem I would get the amount of the deposit in full. Let me know if I have misunderstood the scheme please! Hope this helps!

[justaboutsane]

Islandgirl, the group we work with give us a certificate for the whole bond and we ask the tenants for one weeks rent as a deposit as many can just about afford that.. or we ask them for £5 a week on top of their top ups. They provide an inventory and help the tenant to apply for HB and can also get discretionary HB paid also. They will ensure the tenant is following the AST and have recently moved one of our tenants as she was having trouble with some locals and the property was being damaged. WE have had about 8 tenants through them and have only ever claimed £350 from them. On both oocasions we claimed the money was through within 10 days of the claim.

We also investigated another bond scheme run by a local council and not a charity but it was awful! There was soo much paperwork to get through and so many rules.. it would have made it very difficult for us, so we did not persue that tenant!!

Sometimes the tenants are not even on HB they are young or vulnerable people just starting out who need help to pay the deposit.

There is no consistency with these schemes, some are givernment run, some are government funded but run by charities and others are charities! They all work differently so each one needs investigation before you go ahead.

[caroline7758]

Thanks for the responses!

Sometimes the tenants are not even on HB they are young or vulnerable people just starting out who need help to pay the deposit.

That's true, we've had quite a few working women and men who have had to move out of the marital home after a divorce or domestic violence. Because they are working the council won't house them but they can't afford a deposit and rent in advance.We also have a tenancy support worker who keeps track of clients after they move in to prevent problems.

Unfortunately it may be less good landlords,who will do anything to save a bit of money & get someone else to do their job for them, who may be attracted to our scheme when the new t.d. schemes come in.

[islandgirl]

Justaboutsane - many thanks for the info. Much appreciated