Is Deposit Protection Scheme Insurance (DPS) Beneficial

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Is Deposit Protection Scheme Insurance (DPS) Beneficial

    Is Deposit Protection Scheme Insurance (DPS) Beneficial?

    or are their other avenues to show the deposit is secure to the Tenant?

    Does the deposit have to be deposited within a time frame of getting the Deposit, as some of the Deposit is needed for household furnishings, equipment initially and then will be paid back to the Deposit near the end of the Tenancy?

    #2
    ukpj, forgive me for saying this, but reading your initial posts here suggests you know little about the rules and regs of letting a property. Deposit protection is a legal requirement - do not ignore, do not forget, do not pass go, do not collect £200 - go straight to jail.

    What do you mean about the deposit is needed for household items initially? The deposit is the tenant's money, should be securely deposited in a protection scheme within 30 days of receipt, the scheme's prescribed information given to the tenant and all of it returned at the end, less agreed deductions for any damage or loss. The deposit is not to be spent during the tenancy on anything! Have you done a full and thorough inventory for the property to be able to prove any deductions at the end?

    Seriously, if you have got to the stage of vetting tenants, I an concerned whether you understand enough about how to let property and be a legal and efficient landlord. You should have been asking these questions long ago!!!!!!

    Read this:

    http://forums.moneysavingexpert.com/...2&postcount=12

    and all the links it contains. If you have any further queries, then come back and ask specific questions. Make sure you know what you are doing as I seriously question whether you do!

    Comment


      #3
      Thank you very good weblink, also found this one to be beneficial,

      http://www.direct.gov.uk/en/HomeAndC...cies/index.htm

      within 30 days is fine, to secure the deposit in a protection scheme.

      Yes, an inventory will be done, drafting up an inventory form to include everything.

      An agreement will be legally drafted, all will be fine

      Comment


        #4
        ukpj, deposit protection is 2 stage process - deposit protection & LL providing Ts with full 'required info'. Some Judges may consider both have to be completed within 30 days to avoid penalty for non-compliance claim by T and/or to serve a valid s21, without having to return full deposit before s21 can be served.
        There are 3 approved schemes, one where the full deposit is lodged with DPS and 2 insurance schemes, where LL retains cash and pays an annual, non-refundable deposit Insurance premium.
        Like Lesley Ann, I am concerned that if you need deposit to buy furniture at start, that you have insufficient cash reserves to meet LLs stat & repair commitments during T.

        Comment


          #5
          Originally posted by ukpj View Post
          all will be fine
          Unfortunately, that is not a guarantee you can make in this business - you can minimise the risks, but the risks remain. From the comment about spending the deposit I am going to assume you're a bit short on readies - so how will you cope if your tenant (loses their job and) decides not to pay - it can easily take you 5 months to get them out. Five months without rent but with mortgage payments perhaps?

          Originally posted by mariner View Post
          Some Judges may consider both have to be completed within 30 days to avoid penalty for non-compliance claim by T
          All judgest should take this approach -
          Originally posted by section 214(1)
          Where a tenancy deposit has been paid in connection with a shorthold tenancy, the tenant or any relevant person (as defined by section 213(10)) may make an application to a county court on the grounds—
          (a) that section 213(3) or (6) has not been complied with in relation to the deposit; or . . .
          Originally posted by section 214(4)
          The court must order the landlord to pay to the applicant a sum of money not less than the amount of the deposit and not more than three times the amount of the deposit within the period of 14 days beginning with the date of the making of the order.
          Section 213(6) says the full info must be provided within 30 days - so can not be complied with after that date.

          Comment


            #6
            Thank you, My questions have been answered, no need for any more replies.

            No Deposit will not be required to buy any furniture, it was the Tenants who suggested taking money from the deposit to buy some furniture they would prefer to existing furniture, this is now no longer the case.

            Comment


              #7
              Thank you, My questions have been answered, no need for any more replies.

              No Deposit will not be required to buy any furniture, it was the Tenants who suggested taking money from the deposit to buy some furniture they would prefer to existing furniture, this is now no longer the case.

              Good Point, I have allowed for 6 mths, hopefully it won't come to that, it must be a nightmare when such an event happens.

              Comment


                #8
                Originally posted by ukpj View Post
                Thank you, My questions have been answered, no need for any more replies.
                Sadly on a public forum that isn't in your control

                Even worse - sometimes you get answers you don't like.

                Comment


                  #9
                  Originally posted by Snorkerz View Post
                  Sadly on a public forum that isn't in your control

                  Even worse - sometimes you get answers you don't like.
                  I think I recognise this person!!!

                  (No, Snorkerz, not you)
                  '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
                    I don't but I do admire their confidence!

                    "All will be fine" - never something you can actually guarantee as a landlord, or in life generally ...

                    Comment


                      #11
                      Not sure I do

                      Comment

                      Latest Activity

                      Collapse

                      • Reply to Boiler repair - tenant checked into hotel
                        by tatemono
                        I think you've done all you can in the situation including what many would not in offering your own facilities. I think, given the T's circumstances she would have been in her right to argue for some reduction in rent due to the inconvenience of not having all that she paid for. Perhaps you could negotiate...
                        01-10-2020, 07:51 AM
                      • Boiler repair - tenant checked into hotel
                        by tedcbe
                        Hi I have a tenant who has checked into a hotel due to the fact that the boiler broke down and says she will reduce the amount in the next month’s rent.
                        I have never agreed for her to check into a hotel in the first place.
                        She reported there is an issue with the heating on Sunday night...
                        30-09-2020, 22:30 PM
                      • Reply to Tenant moves his girlfriend in
                        by tatemono
                        That's the only thing we've ever done when partners move in... based on advice on these forums I should add!...
                        01-10-2020, 07:46 AM
                      • Tenant moves his girlfriend in
                        by Hollywood
                        Hi all, I've searched for similar thread but didn't succeed.
                        My Tenant of 14 months, now on a SPT, has moved his girlfriend in. I'm ok with arrangement, it was mentioned by him when he first moved in but they split and nothing happened until now. He has been a good tenant so far & kindly...
                        30-09-2020, 14:12 PM
                      • Reply to Deposit Protection Rules?
                        by jase222
                        There was a case in Bristol similar where the judge rule that the landlord was right to give the original tenant the pi only and didn't need to for a later tenant but I know there was other info about the case, worth no win no fee tho
                        01-10-2020, 07:12 AM
                      • Deposit Protection Rules?
                        by Nips
                        Hi all ex tenant here, hoping someone can help as I can't find a lot of concrete advice online. Basically, I ended a very stressful tenancy in Aug 2019. There was a lot of back and forth, unclear info, and formal complaints, plus at the end of the tenancy they scalped us with deposit deductions. Just...
                        30-09-2020, 17:43 PM
                      • Reply to Deposit Protection Rules?
                        by MW1985
                        It is worth seeking with a no win no fee firm in this scenario. I would offer my opinion to say that the LA were remiss in not providing you with the deposit information. How were you to know the details contained within the Prescribed Info?
                        It sounds as if some short cuts were taken by the...
                        01-10-2020, 06:05 AM
                      • Reply to Rent arrears recovery from mentally disabled ex-tenant
                        by nukecad
                        LOL, do you not read the news (or do you skip over anything disability/benefit related)?.

                        "Everyones a scrounger" is endemic in the benefits system, from government ministers to jobcentre staff.

                        Here's a particular telling case from last year. - If the DWP employee...
                        01-10-2020, 05:14 AM
                      • Rent arrears recovery from mentally disabled ex-tenant
                        by OstridB
                        Does anyone have experience of recovering rent arrears from my former ex-tenant? Tenant left owing £14,000 with £2,000 of damage. Hasn't been to Court. Tenant abandoned property.
                        Tenant's representative says Tenant is receiving DWP social security benefits - sent me a rude email saying he...
                        29-09-2020, 12:18 PM
                      • Reply to Deposit Protection Rules?
                        by gnvqsos
                        Very unusual case.
                        01-10-2020, 04:54 AM
                      Working...
                      X