Should I take a deposit?

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    Should I take a deposit?

    Hi Guys
    Can I ask some advise please about the deposit scheme. I own a small studio
    flat that will become vacant in June.

    The rent is £399 per month. Would I be better of to not bother taking a deposit?

    #2
    why would you not want to take a deposit? Use the free scheme!

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      #3
      the free scheme?

      Hi, I'm just about to take over management of 10 properties that I own and was planning to head down the route of an insurance backed scheme. I have not heard of a free scheme - what is it? Can anyone point me in the right direction to find out more about TDS.

      Many thanks in advance.

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        #4
        The biggest difference between insurance and custodial that landlords need to take account of, apart from whether they hold it or not, is when the tenant vacates.

        With the 'free' custodial scheme, any deductions a landlord want to make from a tenants deposit have to be proved. Thus paperwork has to be faultless, and also be an allowable deduction.

        With the insurance scheme, any deductions a landlord wants to make are by negotiation with the tenant. Only if no agreement is reached is the disputed amount forwarded to the insurer for the duration of the dispute procedure.

        If a tenant knows they are going to have to write and present their case if agreement cannot be reached, in my mind it makes for easier negotiation.
        On some things I am very knowledgeable, on other things I am stupid. Trouble is, sometimes I discover that the former is the latter or vice versa, and I don't know this until later - maybe even much later. Because of the number of posts I have done, I am now a Senior Member. However, read anything I write with the above in mind.

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