The ultimate tenancy deposit scheme thread/site

[Joannepowell]

Sorry for transgression Bel.

I have just looked at the link provided by prolettings and think it's potentially a good scheme (in theory). I will be reading the information completely when it becomes available as it interests me that the cost is laid at the tenants door!

I also like the idea of the deposit being insured to upto £2,000 in the event of a damage claim arising. Let's have it right - how many deposits actually cover ALL the cost of the damage that could potentially be caused by an aggrieved tenant? I know my tenants £400 deposits wouldn't go very far that's for sure!

I also think that the tenant not having to find a deposit in advance to secure a tenancy is good because the total cost (deposit and rent in advance) can prevent a potentially good tenants from actually even applying for a property.

I'm not rushing into making any decisions as to which TDS will be best until I have more info on the above iguarantee scheme.

Kind Regards

J

[Bel]

No problem Joanne. I don't mind; but the thread definately lost some momentum. There is a lot of confusion around regarding deposits which I would like to straighten out in my mind.

[Joannepowell]

No problem Joanne. I don't mind; but the thread definately lost some momentum. There is a lot of confusion around regarding deposits which I would like to straighten out in my mind.

I havn't even started to research the TDS properly yet as I've been so tied up on the other matter! I hope to let the property I've just regained possession of before April 6th so as to have more time to come a decision re TDS. Here's hoping....

J

[Miffy]

I have just looked at the link provided by prolettings and think it's potentially a good scheme (in theory). I will be reading the information completely when it becomes available as it interests me that the cost is laid at the tenants door!

I also like the idea of the deposit being insured to upto £2,000 in the event of a damage claim arising. Let's have it right - how many deposits actually cover ALL the cost of the damage that could potentially be caused by an aggrieved tenant? I know my tenants £400 deposits wouldn't go very far that's for sure!

I also think that the tenant not having to find a deposit in advance to secure a tenancy is good because the total cost (deposit and rent in advance) can prevent a potentially good tenants from actually even applying for a property.

It looks interesting for all the reasons you say, but there are a lot of questions unaswered as yet. Particularly what happens if the T stops paying their subscription. The iguarantee site seems to say that they then stop being a member, so where would that leave us poor LLs? I don't fancy relying on a T's desire to remain in the scheme for the future as my only guarantee...

If this proved to be a good scheme, I would use it instead of DPS as it has benefits for both LL and T. However, not sure whether it would be a bit steep in the long run for the T (as they have a monthly subscription which could end up being more than the deposit in the long run and they wouldn't be getting it back).

[Joannepowell]

Re your last sentence miffy - isn't the whole reason TDS being brought in down to the fact that tenants don't get their deposit back? So what's different there?

I guess much would depend on the cost of the tenant's subscription. I'm not saying that the scheme would suit every tenant but there are many potential tenants out there that have difficultly getting on the 'rental ladder' because of the huge lump sum that has to be found at the start of a tenancy.

I guess this scheme could also be good for tenants wanting to leave a rental but has to rely on deposit being released to pay for deposit on next tenancy. If the deposit is potentially locked in dispute then a tenant could face a catch 22 situation of wanting to get out of one rental property but not able to afford the costs of setting up a new tenancy elsewhere.

Personally, I have registered my interest with the iguarantee scheme so I can keep an eye on how it unfolds. As I'm actually looking at raising my deposits from 1mth's rent equivalent to 6 weeks for future tenancies at least I will be able to inform prospective tenants about the scheme.

J

[Miffy]

Re your last sentence miffy - isn't the whole reason TDS being brought in down to the fact that tenants don't get their deposit back? So what's different there?

Ha ha. "You'll never get your deposit back from me anyway, as you know what we thieving LLs are like. So you might as well pay a monthly fee to this scheme...."

As I'm actually looking at raising my deposits from 1mth's rent equivalent to 6 weeks for future tenancies at least I will be able to inform prospective tenants about the scheme.
J

I have always set my deposits BELOW the 1 month rent level, both to clearly separate it from being a last month's rent substitute and to help people out in getting all the cash together. In light of recent events, though, I too am thinking of going for 6 weeks rent as deposit. Don't really want to, but the extra protection is looking more attractive now... Shame that some people mess it up for the (mainly good) majority.

[Joannepowell]

Ha ha. "You'll never get your deposit back from me anyway, as you know what we thieving LLs are like. So you might as well pay a monthly fee to this scheme...."


I have always set my deposits BELOW the 1 month rent level, both to clearly separate it from being a last month's rent substitute and to help people out in getting all the cash together. In light of recent events, though, I too am thinking of going for 6 weeks rent as deposit. Don't really want to, but the extra protection is looking more attractive now... Shame that some people mess it up for the (mainly good) majority.

Thieving landlords Miffy? Never?!!!

In all honesty, I have had the experience of living 'hand to mouth' when I was a young mum and so know how difficult life can be! I've only been a landlord for a couple of years and with my first couple of tenancies I was really empathic and was 'stitched up' bad time as a result!

I'm still not hard-faced and even in January allowed a tenancy to be commence with the agreement that the deposit could be paid in four installments along with the rent. Unfortunately, cash flow was such that I really needed to get the property tenanted and so had to 'take the risk'. Fortunately, on this occasion the risk has paid off (to date) and the tenant has been fantastic (paying the rent and deposit instalment on the day it becomes due).

However, with my latest experience (thieving tenant) I have absolutely no intention of being taken for another very expensive and time-consuming ride! Cash flow is the best that it's ever been for me now (with all but one property tenanted and rent coming in one due dates). The only vacant property is the one that I got my claim for possession for on Thursday.

I think the way forward for me from now is to ask for just one month deposit if the tenant can provide a guarantor but six weeks deposit if no guarantor. That has to be a fair compromise....

If the 'iguarantee' is as good as it looks (and not too expensive for the tenant) then I would probably try and get tenants to sign up to that in place of a deposit. I know the local authority also runs some sort of 'paper deposit' guarantee scheme so I think I will into that property next week as well.

J

[Miffy]

It looks interesting for all the reasons you say, but there are a lot of questions unaswered as yet. Particularly what happens if the T stops paying their subscription. The iguarantee site seems to say that they then stop being a member, so where would that leave us poor LLs? I don't fancy relying on a T's desire to remain in the scheme for the future as my only guarantee...

I have had a response to my question about what happens if the T stops paying (and they have updated the website FAQs to reflect this). Apparently the LL or agent will remain covered until the end of the tenancy. Sounds more like it!

[Joannepowell]

I have had a response to my question about what happens if the T stops paying (and they have updated the website FAQs to reflect this). Apparently the LL or agent will remain covered until the end of the tenancy. Sounds more like it!

Thanks for sharing that with us Miffy - very useful info! Did you by any chance find out how much this scheme costs the tenant in monthly subsciption? I notice that landlords have to register also - is there a cost associated with the registration?

Thanks in advance for any additional info provided.

Kind Regards

J

[cathie]

yes, please drop the latin and other foreign stuff. TDS is complicated enough as it is. DPS does seem the best for costs, although a pain in the ... the admin for honest simple landlady like me. Have rented for six years, had umpteen tenants and never any trouble. This new admin is just a pain. Heaps of forms to fill in and wastes the 'lead' tenent's time as well. That said DPS have been very helpful on the phone, if a little unsure of the rules at this early stage. Got most of questioned answered. In particular that changes of tenant does not involve complete payout and payback, you can just change the name and keep the existing deposit on file (as it were) only complete end of tenancy means heaps of papwerwork. so one tenant in and one out is not too much work. But if anyone can advise using the pay-a-huge-fee insurance route, please tell the forum. thanks.

[mh1111]

Concequences

If there are existing tenants who are not demanding to be part of the scheme, and there is really a good relationship between landlord and tenant and they dont take part in the scheme, what could be the concequences?

[Ericthelobster]

If there are existing tenants who are not demanding to be part of the scheme, and there is really a good relationship between landlord and tenant and they dont take part in the scheme, what could be the concequences?

Existing tenancies aren't affected anyway - unless you mean new (replacement) tenancies taken up by existing tenants?

In that case - well, nobody's going to come round specifically to check whether you're doing things by the book or not; the time you might have problems is if you fall out with your tenant, or want to evict them or take them to court for arrears etc. That's when your tenant might decide to make it public knowledge and drop you in the do-do, and that despite all their entreaties, you have steadfastly refused to transfer their deposit into the scheme. They might do this not just to cause you grief and earn you a hefty automatic fine of 3 times the deposit, but because they'd no doubt find out that by failing to register their deposit you would have forfeited the right to regain posession of your property by the usual section 21 route.

Regardless of how well you might get on with your tenants now, it really doesn't seem worth it, does it?

[paul_c]

Does ANYONE know how much the iguarantee scheme charges the tenant? And, yes, I've tried asking them but with no response.

And up to what value do they guarantee the rent and any damage to the property? It says on their website 'up to a specified amount'. Again, no answer from them.

Do they really expect landlords and tenants to use their service if they don't say what's involved and don't answer queries? Strange set up.

[jeffrey]

Does ANYONE know how much the iguarantee scheme charges the tenant? And, yes, I've tried asking them but with no response.

And up to what value do they guarantee the rent and any damage to the property? It says on their website 'up to a specified amount'. Again, no answer from them.

Do they really expect landlords and tenants to use their service if they don't say what's involved and don't answer queries? Strange set up.

Yes. The entire TDS is a shambles and a disgraceful intrusion into freedom of contract.

[Miffy]

Does ANYONE know how much the iguarantee scheme charges the tenant? And, yes, I've tried asking them but with no response.

And up to what value do they guarantee the rent and any damage to the property? It says on their website 'up to a specified amount'. Again, no answer from them.

Do they really expect landlords and tenants to use their service if they don't say what's involved and don't answer queries? Strange set up.

I don't think they have finalised the details. I am on the mailing list but have received nothing concrete as yet.