Tenant Deposit Schemes - What are alternatives?

thelawnet · 27 June 2007 at 5:48PM

infocom wrote: »

My tenants are happy for me not to register as they dont get anything out of it and would prefer I look after their money as they trust me over government/businesses who are just out to make a profit. Some of my tenants specifically told me one reason they moved in is because they wanted to deal with a nice landlord and not a letting agent who will have no interest on the property whatsoever and only want to make money.

Hmm, that is very silly from you. If you don't register, your tenant can use that against you to get 3 * the amount of the deposit. You also lose your s21 eviction rights. In this situation you should not take a deposit at all, rather than taking one unregistered - if a tenant is too dodgy to refuse to pay repair costs, he is also the same type of person to use the unregistered deposit against you to win damages in court. Beware!

Alleycat · 27 June 2007 at 8:01PM

I've worked in homelessness for nearly 4 years and have seen so many cases with dodgy landlords withholding deposits, not doing repairs, harassing tenants etc. Whilst it is all well and good saying that you are a nice landlord and would never unreasonably withhold a deposit, unless you can prove it, it really holds no water. The TDS should bring some further regulation of landlords which I can assure you is definately needed. If it means even just one person gets their deposit returned when otherwise it would have been unjustly held, then it is a good thing.

At the end of the day, whether you treat it as a business or not, this is what you are. Whether you make a profit or loss is irrelevant. Like most businesses, if you cannot afford to stay afloat then you should probably think about selling off the properties and trying your hand at something else.

thelawnet · 27 June 2007 at 8:25PM

Alleycat wrote: »

I've worked in homelessness for nearly 4 years and have seen so many cases with dodgy landlords withholding deposits, not doing repairs, harassing tenants etc.

Quite right. Tenants can be extremely vulnerable. Some, such as I, know their rights and will exert them, but far more would have no clue what to do if the landlord refused return of their deposit. For many tenants the loss of such a sum would cause very considerable hardship, whereas a multiple home owner is conspicuously *not* in such a vulnerable position.

thesaint · 27 June 2007 at 8:54PM

infocom,

Simply add an admin fee and you can recover any money spent on this scheme.

You can still keep all the interest(After the TDS has had it's share). Looking after your tenants is fine, but tenants have campaigned long and hard for it, so let them pay for it.

It's a shame that adults can't decide to agree a contract between themselves, but that's the system, so best learn how to use it for your advantage.

Alleycat · 27 June 2007 at 9:00PM

thelawnet wrote: »

Quite right. Tenants can be extremely vulnerable. Some, such as I, know their rights and will exert them, but far more would have no clue what to do if the landlord refused return of their deposit. For many tenants the loss of such a sum would cause very considerable hardship, whereas a multiple home owner is conspicuously *not* in such a vulnerable position.

At the moment, I work specifically with vulnerable clients and even those who aren't considered vulnerable quite often don't know their rights, or even if they know its wrong, don't know how to go about defending themselves. I regularly advise clients who are privately renting on their rights regarding the return of their deposits, taking out injunctions against landlords who are harassing them, that they can't be evicted on just a weeks notice etc. I sometimes get a shirty landlord phoning me giving me grief but I advise them that they are operating a business and have a responsibility to abide by the law and that includes returning unlawfully held deposits.

I am sure most people would be up in arms if an employer withheld their salary for no good reason and would expect them to know the law and abide by it. The same goes for landlords.

thelawnet · 27 June 2007 at 9:16PM

thesaint wrote: »

Simply add an admin fee and you can recover any money spent on this scheme.

You can still keep all the interest(After the TDS has had it's share). Looking after your tenants is fine, but tenants have campaigned long and hard for it, so let them pay for it.

It's free though.... It needn't cost anything.

It's a shame that adults can't decide to agree a contract between themselves, but that's the system, so best learn how to use it for your advantage.

Are you kidding? Did you negotiate the terms of the contract with your mobile phone supplier? No? Well neither do tenants with landlords (or usually letting agents). That is why the rules are there because the relationship is not an equal one.

thelawnet · 27 June 2007 at 9:17PM

wecanhelpu wrote: »

There is only one reason this has been brought in - to enable the government to build a database of landlords and their properties in order to gather taxes.

That's a nice thought.

But I find it highly unlikely the government would be that efficient.

Shame though.

Meatballs · 27 June 2007 at 9:26PM

thesaint wrote: »

infocom,

Simply add an admin fee and you can recover any money spent on this scheme.

Pay an admin fee for something you are legally required to do where the service is provided free of charge? :eek:

thesaint · 27 June 2007 at 9:41PM

Originally Posted by thesaint
Simply add an admin fee and you can recover any money spent on this scheme.

You can still keep all the interest(After the TDS has had it's share). Looking after your tenants is fine, but tenants have campaigned long and hard for it, so let them pay for it.

thelawnet wrote: »

It's free though.... It needn't cost anything.

I have spoken about this "Free" thing months ago, I shall not go over it again in full, but it takes time to administer it, and time is money.

Are you kidding? Did you negotiate the terms of the contract with your mobile phone supplier? No? Well neither do tenants with landlords (or usually letting agents). That is why the rules are there because the relationship is not an equal one.

No I did not negotiate the contract with my mobile phone supplier, I read them and agreed with them and will comply and fully expect them to do the same. As an adult I am free to do so.

Tenants can and do negotiate terms with their landlord/letting agent.;)

Gorgeous_George · 27 June 2007 at 9:50PM

The TDS is free but it cost me time. However, this was only about 10 minutes after I'd read the terms and conditions. Of course, ask a solicitor how much they charge for 10 minutes work. I don't know how long I will spend on administering this law at the end of the tenancy.

For me, it will be a small burden worth bearing if it stops people tarring LL's with a very wide brush.

I do not believe that my tenants will benefit from the scheme. The interest on £450 (of somebody else's money) isn't going to cause me to lose sleep.

I always give my tenants an agreement as soon as they say they want the house and ask that they agree with the terms before signing. Others may not, of course. The TDS will not cure the tenant who thinks dirt is fair wear and tear.

GG

Tenant Deposit Schemes - What are alternatives?

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