Tenancy Deposit Scheme

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  • Tenancy Deposit Scheme

    Couple of quick ones regarding our deposit shake-up in April....

    1.Will the scheme apply to deposit 'top-ups' for deposits originally taken before 6 April? i.e. I often ask tenants to increase deposit when I increase the rent, so i've always got a months deposit....

    2.Are we allowed to pass on the fee for registering the deposit to the tenant?

    3.Any recommendations about which scheme to join? I'm thinking of the one that's a joint venture with the NLA & Hamilton insurance (www.mydeposits.co.uk)

    Any help/advice greatly appreciated as always.

  • #2
    tenancy deposit

    try using a custodial scheme, these are free
    Many Thanks
    Steve P

    Comment


    • #3
      Originally posted by Wickerman
      The fees seem extremely steep given the costs cannot be passed on to the tenant - £30 plus vat per deposit
      Is that definitely the case, then? (If so, suppose there's nothing to stop LLs from all deciding to increase their rents by £2.50 monthly, is there?!)

      Comment


      • #4
        tenancy deposit

        There are 2 options us landlords can take

        1) The custodial scheme - no charge but you have to deposit the full deposit into the scheme.

        2) The insurance based schemes - costs apply.

        Thanks
        Many Thanks
        Steve P

        Comment


        • #5
          Originally posted by stephenp View Post
          There are 2 options us landlords can take

          1) The custodial scheme - no charge but you have to deposit the full deposit into the scheme.

          2) The insurance based schemes - costs apply.

          Thanks
          ...and custodial scheme involves handling fee, doesn't it?
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
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          • #6
            Custodial Schemes

            No - Completely free, the tenant gets the interest accrued though unless you state otherwise in your AST.
            Many Thanks
            Steve P

            Comment


            • #7
              The money which is placed into the custodial scheme is held until the end of the tenancy. Once both you and the tenant agree who has what then they transfere it either into tenants BANK account or yours. No cash is repaid even if you take cash from them..

              If there's is a dispute, or tenant bunks, one sided objection can claime 100% of deposit back in either case.
              My opinions are exactly what you would expect, my own!

              Comment


              • #8
                who mentioned cash
                Many Thanks
                Steve P

                Comment


                • #9
                  Originally posted by stephenp View Post
                  No - Completely free, the tenant gets the interest accrued though unless you state otherwise in your AST.
                  Only a small point, but I understood that no interest was payable to LL or T as it was the deposit interest which "paid" for the scheme's running costs?

                  Comment


                  • #10
                    don't be so tight. no u can't pass the cost onto the t. This scheme was set up exactly for people like u. sorry.

                    Comment


                    • #11
                      No tobylaura the scheme was set up because of those landlords who didn't pay back deposits at all, not those who run a proper business and quite rightly worry about costs.

                      Don't forget, a lot of landlords don't have just one property. What looks like just £30 may be £3000 for some and that will be every year.

                      We can pass the costs to tenants and will. Rents will rise.

                      Comment


                      • #12
                        Originally posted by attilathelandlord View Post
                        No tobylaura the scheme was set up because of those landlords who didn't pay back deposits at all, not those who run a proper business and quite rightly worry about costs.

                        Don't forget, a lot of landlords don't have just one property. What looks like just £30 may be £3000 for some and that will be every year.

                        We can pass the costs to tenants and will. Rents will rise.
                        and in a competitive market flooded with properties to rent, those who do so will lose tenants

                        its market forces that drive rental rates

                        Comment


                        • #13
                          Where are all these flooded rental markets that I keep hearing about?
                          My council have thousands on their waiting lists and are proactive in not letting people join it.
                          Allow tenants to protect their own deposits. I want free money when they do it wrong

                          Comment


                          • #14
                            In my area, as soon as one of my properties becomes vacant, I will have six viewings within the first week - all professionals.
                            ASSUME NOTHING - QUESTION EVERYTHING!

                            Comment


                            • #15
                              Originally posted by thesaint View Post
                              Where are all these flooded rental markets that I keep hearing about?
                              My council have thousands on their waiting lists and are proactive in not letting people join it.
                              No idea about council housing, but there's a dozen 2 bed flats within a couple of miles of my place, two identical ones in the same block are up for 850 and 1000 respectively (the latter has been up for 3 months), I wonder which of those will rent first/easiest? the one charging extra to cover their costs?

                              I will have six viewings within the first week - all professionals.
                              Just out of interest - what do people class as professionals? it seems nowadays, this is a catch all term for people who wear a shirt and tie to work, aka office workers

                              I used to think the term professional referred to airline pilots, lawyers, doctors etc etc

                              Comment

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