TDS custodial scheme now running!

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    TDS custodial scheme now running!

    You can now transfer funds to the TDS custodial scheme.

    The admin interface is clunky to say the least (and I speak as someone who writes web based applications for our own business and know what works and does not) - there is not even a "help" function. It certainly is not clear how you send request the money be sent back to the tenants, how you handle deductions, etc (mention is made of an arrangement form, with no link to the form!!!)

    Very poor, especially from a company given the contract on the back of an established custodical scheme they run.

    I also noticed this:

    How will the scheme return cash to tenants?
    The scheme will return deposits directly to bank accounts. Alternative repayment methods will also be available (eg for tenants or landlords based overseas who wish to receive payment in a local currency).

    So what about tenants without bank accounts? Certainly a good proportion of tenants in poorer areas will not have bank accounts. Will they send Post office cheques [do these still exist???] to them?
    Liability statement. My liability to you is not to exceed the amount you are paying for my recommendations or advice.

    I see a bright new future, where chickens can cross the road with no fear of having their motives questioned

    #2
    Originally posted by Wickerman View Post
    How will the scheme return cash to tenants?
    The scheme will return deposits directly to bank accounts. Alternative repayment methods will also be available (eg for tenants or landlords based overseas who wish to receive payment in a local currency).

    So what about tenants without bank accounts?
    If this government has anything to do with organising it, I expect those deposits will be returned to the landlord for handing back to the tenant in cash...

    Comment


      #3
      Quite honestly, I m not worried. Up to now, when one of my tenants leaves, the deposit has been returned by me promptly. When the TDS comes into force, I shall notify them to refund my tenant promptly and then wash my hands of it. If it takes them ages, then it is a problem between my ex-tenant and them.

      P.P.
      Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

      Comment


        #4
        Yes, this whole scheme is going to be a mess for a few years..I can see the sitiation in a year or two of the tenant´s simply not paying the last months rent because of the delays of the administrators in the peak changover time of June to Sept, the Landlords and Agents advising that they have paid deposit to themselves or requesting monies from DPS and taking tenant to court for damages...so take 6 weeks deposit.

        We need a bad tenant list as in New Zealand/Australia.
        "Better an empty property than a tenant without a guarantor"

        Comment


          #5
          Originally posted by Ericthelobster View Post
          If this government has anything to do with organising it, I expect those deposits will be returned to the landlord for handing back to the tenant in cash...

          Just an observation - BUT WOULDN'T THAT DEFEAT THE OBJECT???

          Wasn't the main reason the TDS was brought in in the first place due to landlords NOT handing deposits back to the tenant?



          J

          Comment


            #6
            Originally posted by Joannepowell View Post
            Just an observation - BUT WOULDN'T THAT DEFEAT THE OBJECT???

            Wasn't the main reason the TDS was brought in in the first place due to landlords NOT handing deposits back to the tenant?


            J
            I think he was joking

            Comment


              #7
              Originally posted by Colincbayley View Post
              I think he was joking
              So do I...

              Comment


                #8
                Can't believe that joke went right over my head!!! It's a fair cop (even if it wasn't April 1st when posted)!

                J

                Comment


                  #9
                  Originally posted by Sportingdad View Post
                  ...so take 6 weeks deposit.
                  *Request* a 6 week deposit

                  Many tenants, me included, will hunt elsewhere if asked for 6 weeks up front

                  Plenty of choice right now

                  Comment


                    #10
                    If a landlord doesn't take a deposit, how are the hoping to cover the cost of any damage during the tenancy?

                    Seems a risky route to take

                    Comment


                      #11
                      Of course yes, after posting I figured that Landlords will just have to retrieve compensation directly from tenants rather than deducting from a deposit they hold

                      Would probably result in more court/arbitration, but then the TDS will do that as well, so I can see the mileage in doing it the no deposit way

                      Thanks

                      Comment


                        #12
                        If you have decent properties, a tenant will pay a 6 week deposit, if you are looking to rent out rubbish properties to rubbish tenants you will be lucky to get 2 weeks deposit (but somehow good decent landlords's are now having to put up with this extra admin because of the rubbish properties/Landlords)

                        Incidentally regarding the advice of no deposits, most of the RLA's and NFLA boards are made up of Landlords owning 50+ properties each let to long term tenants whom they will put on periodic tenancy, slightly out of touch with the modern morgaged to the hilt Landlord. This goverment has just handed more rights to the tenants without handing the Landlord anything.


                        I've just read this article which sheds a little light on the problems in Aus where we are told everything is perfect,(please take note Shelter and CAB), however, they have bad tenant databases and can serve notice on a tenant who is 14 days in arrears and get possession 14 days after.
                        "Better an empty property than a tenant without a guarantor"

                        Comment


                          #13
                          Sorry forgot the link

                          http://money.ninemsn.com.au/article.aspx?id=257230
                          "Better an empty property than a tenant without a guarantor"

                          Comment


                            #14
                            Originally posted by nick.. View Post
                            Many tenants, me included, will hunt elsewhere if asked for 6 weeks up front
                            Well I've always asked for 6 weeks deposit (in round figures) for the very reason to protect me from the sort of tenant who sees having a 1 months' rent as deposit as being an invitation to withold it instead of paying the last months' rent. The policy has always worked fine for me and my tenants; if the occasional prospective tenant has been put off by it then I have no problem with that.

                            I'm concerned that in future, tenants may still withold the last months' rent despite the deposit being held by a third party - time will tell. I don't have any new tenancies to set up in the very near future, and haven't yet decided what to do about deposits, but I suspect that for now I will continue to ask for 6 weeks and use the custodial scheme.

                            Comment


                              #15
                              Originally posted by Ericthelobster View Post
                              Well I've always asked for 6 weeks deposit (in round figures) for the very reason to protect me from the sort of tenant who sees having a 1 months' rent as deposit as being an invitation to withold it instead of paying the last months' rent..
                              Whats stopping them not paying the last month and a halfs rent though? Less likely, I suppose, but thats about it, isn't it

                              I'm guessing having them removed would take at least as long as is left on their tenancy in that scenario

                              Comment

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