Maintenance Funds

[DEVMANC1]

Hello everyone,

Quick question, I’m a new landlord and taken on my first tenant through a local agency. Amongst the various deductions on rental income was £500 maintenance to be put into a repair fund. Assuming no repair work is required; I’m entitled to this money back at the end of the tenancy….aren’t I? To my mind, I should get it back but having been left slightly shocked by how little money I actually received from the agent, I'm not so sure now.

I’ve obviously asked the agency, but no reply yet…I want a second opinion before I start chasing it up.

Thanks

[landlordproblemsolver]

If the £500 has been earmarked for a maintenance fund, then yes you should get it back if no repairs are carried out.

Do however check your contract with the agent to see if any administration fees are specified in the terms with regard to the maintenance fund.

[mind the gap]

If the £500 has been earmarked for a maintenance fund, then yes you should get it back if no repairs are carried out.

Do however check your contract with the agent to see if any administration fees are specified in the terms with regard to the maintenance fund.

Quite...like £500 for 'administering the repairs fund'

[jta]

If you are going to leave the money with them is it going to be held in a 'client' account? Or could it be that they are in trouble and need to grab all they can?

I do not consider this to be a normal thing at all.

Cynical? No. We have too many posts about LA's going bust and landlords losing their money.

[Snorkerz]

I consider the practice to be 'normal' but the amount to be too much. A couple of hundred quid should be sufficient. Do note jta's caution though.

[DEVMANC1]

Thanks for all your replies.
The tenant paid up front for all 6 months, so their arguement was that they want £500 instead of the £200 as stated in the contract. Not that they told me prior to taking it.

Not too concerned that they will go bust as they are a well established agency with about 80 units in my building alone on their books (i know that for a fact)