Tenancy Deposit Scheme

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    Tenancy Deposit Scheme

    I have a landlord that I tenant find for and he always in the past has held his own deposits. He has a property that is now empty and after a lot of discussion regarding him taking 2 months rent in the first month instead of a deposit "it appears he wants to call it rent to avoid the scheme" I have said this will not work he has now said that he will place the 6 week deposit we take into the scheme himself. Call me a cynic but I suspect he will not put the money in the scheme and we will have issued the T/A which states the money will go into the custodial scheme - does this have a comeback on us if he does not in fact lodge the deposit? I would rather not deal with him if it puts us at any risk. He has also said that he cannot find anything that defines "a deposit" and has asked me to send him the wording of the act - anyone know where I can find this please. Vanessa

    #2
    Originally posted by Tiggy View Post
    I have a landlord that I tenant find for and he always in the past has held his own deposits. He has a property that is now empty and after a lot of discussion regarding him taking 2 months rent in the first month instead of a deposit "it appears he wants to call it rent to avoid the scheme" I have said this will not work
    You are right. If the two months rent is designed as an amount which the LL "holds" to cover any damage, it is a deposit and must be in a TDS. Calling it rent does not change anything.

    he has now said that he will place the 6 week deposit we take into the scheme himself. Call me a cynic but I suspect he will not put the money in the scheme and we will have issued the T/A which states the money will go into the custodial scheme - does this have a comeback on us if he does not in fact lodge the deposit?
    If agreement is between T and L and deposit is paid to L, then he is responsible for protecting it. If he doesn't then I don't think you will be liable. You only prepared the agreement --- both T and L accepted the terms. If L breaks the terms, it's not your fault. Suggest you warn him about possible penalties for non-compliance --- 3 x deposit must be paid to tenant as a fine, if tenant goes to court about it.

    I would rather not deal with him if it puts us at any risk.
    You are there only to find the tenant and produce the agreement. If T and L break terms in the agreement, it's not your fault. So I don't think there is any risk to you, but don't take my word for it...I may be wrong.

    He has also said that he cannot find anything that defines "a deposit" and has asked me to send him the wording of the act - anyone know where I can find this please. Vanessa
    The act is at http://www.opsi.gov.uk/ACTS/acts2004/20040034.htm, but if I were you I would tell him to find it himself --- it's not your job to keep him aware of his responsibilities.

    A deposit is defined clearly in the act as

    any money intended to be held (by the landlord or otherwise) as security for-

    (a) the performance of any obligations of the tenant, or


    (b) the discharge of any liability of his,


    arising under or in connection with the tenancy.
    Sounds like he's trying to wriggle out of it, but even if he does, it's not your fault.

    Peter

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