Is Deposit Protection Scheme Insurance (DPS) Beneficial

[ukpj]

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?

[LesleyAnne]

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!

[ukpj]

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

[mariner]

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.

[Snorkerz]

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?

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 -

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 . . .

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.

[ukpj]

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.

[ukpj]

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.

[Snorkerz]

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.

[mind the gap]

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)

[LesleyAnne]

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 ...

[ukpj]

Not sure I do