If you're not taking deposits, what are you doing?

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    If you're not taking deposits, what are you doing?

    Hi All,

    I have seen some posters saying that they have stopped taking deposits as a result of the DPS. I too am toying with this idea, but I would like to know how LL's intend to have some security for the contents. My properties are fully furnished so this is more of an issue for me but if you don't take deposits, what do you do?

    Regards

    Jai

    #2
    Intensive background checks. Copies of passports and drivers licenses, at a minimum. Will certainly verify that any letters of recommendation and referencing comes from whom it says it is from.
    ASSUME NOTHING - QUESTION EVERYTHING!

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      #3
      Yeah, I do that anyway as my standard procedure. So do you just not take deposits and charge the tenant for any damage, clean up costs etc. What if they dont pay?

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        #4
        Remember that the DPS nonsense covers only AST lettings. On all others, deposit procedures are unaffected.
        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.
        4. *- Contact info: click on my name (blue-highlight link).

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          #5
          There's nothing to lose by taking a deposit and lodging it in the custodial scheme. I've just done my first one. I don't like this DPS thing, but it seems better that the tenant at least knows they are POTENTIALLY out of pocket if there are any chargeable problems, as opposed to taking nothing and them having nothing to worry about? I'm not looking forward to my first battle with the DPS/tenants though!

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            #6
            Originally posted by jghomer View Post
            There's nothing to lose by taking a deposit and lodging it in the custodial scheme. I've just done my first one. I don't like this DPS thing, but it seems better that the tenant at least knows they are POTENTIALLY out of pocket if there are any chargeable problems, as opposed to taking nothing and them having nothing to worry about? I'm not looking forward to my first battle with the DPS/tenants though!

            Good post. Just wondering aloud: If the potential damage is more than the deposit and you make sure that your request for reimbursement is more than the deposit, will this insure that you can still go to court, no matter what the DPS decision? Over to you Jeffrey>
            ASSUME NOTHING - QUESTION EVERYTHING!

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              #7
              Originally posted by jghomer View Post
              There's nothing to lose by taking a deposit and lodging it in the custodial scheme. I've just done my first one. I don't like this DPS thing, but it seems better that the tenant at least knows they are POTENTIALLY out of pocket if there are any chargeable problems, as opposed to taking nothing and them having nothing to worry about? I'm not looking forward to my first battle with the DPS/tenants though!
              That's my view of things too-even if there were little prospect of getting my hands on deposit, the tenant can't be absolutely sure of that! Also, I am not looking forward to the hassle involved if the tenant cannot be contacted-making witnessed statutory declaration or whatever it is....

              Originally posted by Paragon View Post
              Good post. Just wondering aloud: If the potential damage is more than the deposit and you make sure that your request for reimbursement is more than the deposit, will this insure that you can still go to court, no matter what the DPS decision? Over to you Jeffrey>
              The DPS states that the ADR cannot be used if the amount in dispute is more than the deposit. Also, remember that you can opt to go to court instead of using the ADR anyway. (I am thinking that this may be a bargaining tool to persuade an agreement from tenants who otherwise might have nothing to lose from going to ADR for the hell of it. "Well Mr x, if you really want to dispute the damage you have done, I might as well take you to court and apply for costs as well. How do you like them apples?"

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