" Which?" - Tenancy Deposit Protection Scheme

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    " Which?" - Tenancy Deposit Protection Scheme

    Hi,

    Individual landlord rent out three properties, tenancy agreement lasts 6 months or 1 year.

    Which Tenancy Deposit Protection Scheme is better?

    DPS is free but you need to hand in all your deposit to them and seems a lengthy process to get them back. I worry if the tenant turns out to be a nightmare it could be difficult.

    Other insurance based seemed to be better but the running cost will be more.

    Please advice.

    Thanks!

    #2
    DPS IMO as Ins schemes prob require seperate premium pa for each ind Tenancy

    Comment


      #3
      DPS for me, zero costs and althought you don't benefit from the cash flow during the tenancy you also can't spend the deposit!

      Comment


        #4
        I use DPS - easy to setup - easy to manage.

        re: the money cashflow - I doubt it should be that tight for you to use the deposit?

        for me I'd rather it was somewhere else - then I can't spend it.

        Comment


          #5
          Thanks All!

          It's just that I had problem tenant in the past. They didn't pay rent for a couple of months, didn't response to anything and disappear. Because I kept their deposit so got some of my money recovered and didn't go through Court with them as it may be more costly.

          With DPS, I worry that it will be hard to get my money back in a situation like this. Right(?)

          Comment


            #6
            Until recently, I used an agent to manage my let, and he recommended and used the DPS for all his deposits. I had a bad tenant who stopped paying, refused to leave and eventually did a runner. Agent said that if tenant does not object to the application for the deposit within a certain time, it would all be released to me, which it was. This is the only experience I have of a "release" as since I started managing property myself, I have only had one tenant who is still there. I used DPS for his deposit and found it very quick and easy to set up online, so no problems so far.

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              #7
              Thank you so much ! It's very helpful.

              Comment


                #8
                Originally posted by chloeffw00 View Post
                Thanks All!

                It's just that I had problem tenant in the past. They didn't pay rent for a couple of months, didn't response to anything and disappear. Because I kept their deposit so got some of my money recovered and didn't go through Court with them as it may be more costly.

                With DPS, I worry that it will be hard to get my money back in a situation like this. Right(?)
                The DPS have a single claim process whereby the landlord (or tenant) can reclaim the deposit if the other party does not respond to the 'standard' process.

                Comment


                  #9
                  You've only got two choices: MyDeposits or DPS. TDS (The Dispute Service) has strict eligibility requirements and is used mostly by agents.

                  If you went with MyDeposits and there was a dispute with the T (as opposed to him disappearing), then you'd have to hand over the disputed sum to MyDeposits pending resolution of the dispute.

                  MyDeposits will also 'unprotect' a deposit if you fail to pay the membership fees, leaving you exposed to a non-compliance claim by the T.

                  Comment


                    #10
                    Not quite true Westminster, there is a new kid on the block "Deposit Guard" which is TDS trying to get in on the private landlord action, in conjunction with the RLA http://www.rla.org.uk/landlord/tenan...it_guard.shtml

                    Comment


                      #11
                      Originally posted by Snorkerz View Post
                      Not quite true Westminster, there is a new kid on the block "Deposit Guard" which is TDS trying to get in on the private landlord action, in conjunction with the RLA http://www.rla.org.uk/landlord/tenan...it_guard.shtml
                      Thanks Snorkerz.

                      All I can find on the TDS website is this - see the para "I'm a landlord - how can I join?" - https://www.thedisputeservice.co.uk/...-landlord.html

                      TDS call it 'the Tenancy Deposit Scheme for Landlords' and say "it is marketed by the RLA as 'DepositGuard'". Landlords can apply direct to TDS or via RLA.

                      So essentially, it would seem it's not a new scheme per se, it's just that TDS are now allowing smaller private LLs to protect deposits with them on a pay-as-you-go basis (instead of paying an annual membership) and also promoting it via the RLA under a *special name*. The RLA website misleadingly says that it's "exclusive... only available to RLA members".

                      Comment


                        #12
                        Originally posted by Snorkerz View Post
                        The DPS have a single claim process whereby the landlord (or tenant) can reclaim the deposit if the other party does not respond to the 'standard' process.
                        Yes I use DPS and have done the above myself, in the case of a non-paying, evicted tenant. Wasn't too arduous to successfuly claim the whole deposit.

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