Landlord quits deposit protection scheme!

clutton_2

good idea MissMP

tbs624

clutton wrote: »

what tenants dont appear to realised about Mydeposits (unlike DPS which is free) - is that landlords have to BUY a subscription/joining fee to mydeposits, then buy a Tenancy insurance policy - which they then have to buy AGAIN every time a new tenancy agreement is signed .... it aint cheap .. and it encourages landlords to keep tenants on periodic tenancies.....

(My highlighting) Now come on Clutton, those fees - one off membership £57.50(or 20 quid for NLA members), plus just under 30 quid to register the actual deposit (c£17 if deposit less than £300) are the sort of costs for which most LLs will plan when setting out their forthcoming rental figures. So, let's take a LL with half a dozen properties - less than £3.30 per month gross cost of registering that deposit in the first year (because currently no membership renewal fee for exisitng members).

Then let's remember that the LL retains the actual deposit funds for the duration of the tenancy, and that the fees are, of course, tax deductible. .....looking pretty cheap for the cover I reckon.


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tbs624

clutton wrote: »

this could be a cheap way for tenants to get their own recent no-CCJ records to show to a private landlord by way of referencing themselves

I think you' re possibly right if its a LL who is self-managing and combining it with other checks, but for any LL using rent guarantee insurance the checks have to be completed to their specification. For a T to ask for his/her own check to be used as the basis for their decisions would perhaps be similar to expecting house buyers to rely on a survey provided by the seller rather than getting their own done.

clutton_2

i just recalled - one of the schemes (can't remember which) has said that it will no longer be offering cover to landlords who also act as lettings agents but who are not members of ARLA or other professional bodies - this could be another legitimate reason why the LL is being withdrawn