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Confusion with Lettings Agent - Where should I hold a deposit

Hi all,

There's been a bit of confussion between me and my Lettings Agent.

A tenant moved into my property in July and paid all the relevant deposits, etc.
This is where the confusion arose. I thought the Agent was going to arrange for the deposit to be held in the TDS, and I thought they were going to arrange to hold the deposit.

6 months down the line, they've just called me telling me that they've still got the funds and that they need me to send them the relevant details so that they can pass the deposit over. I've asked them to deal with it but they've said that they can only do it when the existing tenancy expires and a new contract is signed.

It looks like I'm going to have to make arrangements to hold the deposit so:
1)What are my options and which is the cheapest?
2) If, at the end of the tenancy, there is a dispute about delapadation, etc, could I be liable for delaying the deposit registration?

Thanks.

Comments

  • adg1
    adg1 Posts: 670 Forumite
    Though the agent may have led you to believe they would protect your deposit in on of the 3 schemes, it is ultimately the landlords decision to get it done.

    Register yourself as a landlord with the landlords association to get some support as it looks like your agent aren't particularly proactive or helpful.

    Register yourself as a landlord, get a reg number and join a deposit protection scheme and get your tenants deposit protected now.

    I'm sure someone will be along very soon with more info as to what needs doing to get the deposit registered but make sure you do it now or YOU, not your agent can be sued by your tenant for 3x the deposit value.
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    DPS is freee - and you can deposit the monies at any time - mydeposits costs about £40 and you hold the funds and you can pay the fee at any time. You will need to have confirmed in writing from the agent that they have not contacted you earlier about this, so that if it does end up in court you can show that you have not deliberately not deposited it.

    re dilapidations - did the agent do an inventory ?

    i think this agent is covering their own backs by putting you in control, as it seems likely that they have forgotten to deposit it earlier
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The letting agent works on your behalf - that means the buck stops with you if things are not done properly. Is the confusion because you are an amateur landlord? If so join a landlord's associstion. Is the confusion because your letting agents are slack? If so get another letting agent.
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
  • icebergx wrote: »

    6 months down the line, they've just called me telling me that they've still got the funds and that they need me to send them the relevant details so that they can pass the deposit over. I've asked them to deal with it but they've said that they can only do it when the existing tenancy expires and a new contract is signed.
    I think that is pathetic on their part. In your position, I would be instructing them to protect the deposit and asking why they have taken so long to raise the matter as you have now discovered that there is a penalty of 3 times deposit for failure to protect.

    One thing to watch out for [someone correct me if this is wrong] - is that one of the schemes is insurance based and the LL or LA keeps the deposit. I think that sometimes, if the insurance premium is not paid, the tenant gets a letter indicating that the deposit is no longer protected. This is not the scheme I would want as tenant.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Thanks very much for your replies.
    Just registered with the DPS so hopefull this will be sorted out soon.

    I've got a good relationship with the tenants so I'm sure things will be fine. Just want to make sure I'm covered in case of any problems.
  • tbs624
    tbs624 Posts: 10,816 Forumite
    It's good that you have finally done what you are legally obliged to do, regarding your tenants' deposit money, but blaming your own shortcomings on your LA seems pretty weak. As others have said join a LL association or LL law.

    No matter how good you thought your relationship with a T was , the chance of a full deposit return plus 3x its amount as a penalty looks very inviting to Ts whose LLs have failed to comply with the law.

    Make sure that you also give your tenants the Scheme's prescribed information: that's an additional requirement under the deposit regs.

    Don't rely on an LA to cover your back: anyone-absolutely anyone- can set up in business and call themselves an LA. Do your own research on what you are legally required to do as a LL and keep a check on what they do or don't do on your behalf.
  • tbs624
    tbs624 Posts: 10,816 Forumite
    edited 1 December 2009 pm31 1:25PM
    ..One thing to watch out for [someone correct me if this is wrong] - is that one of the schemes is insurance based and the LL or LA keeps the deposit. I think that sometimes, if the insurance premium is not paid, the tenant gets a letter indicating that the deposit is no longer protected. This is not the scheme I would want as tenant.
    One scheme( DPS) is free to use and is custodial. The other two , mydeposits and TDS are insurance-based, allowing the LA/LL to hold the actual deposit money. .

    The LL pays a membership fee and a "per deposit" fee when the deposit is registered: issues occurred with TDS when their insurers refused to continue to provide cover for agents who weren't voluntarily signed up to ARLA, NAEA, RICS etc and they wrote to the Ts affected by their decision, but cover was continued for min period) . The LL has to keep your deposit registered somewhere and you can pursue him to court if he fails to do so. Many Ts find that they get a quicker repayment under the latter 2 schemes, compared to the custodial DPS ( in cases where there is no dispute over deductions)
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