Rent/deposit scheme question?

axxxr

Hi,

Just have a quick question to clarify, when signing a new tenancy agreement who is liable to pay into the Rent & Deposit scheme, is it the Landlord or Tenant and who much does it cost?

Thanks!

clutton_2

The tenant gives the deposit to the landlord or agent, and then the landlord registers the deposit on behalf of the tenant.. in a Tenancy Deposit scheme


There are 3 Schemes to choose from - DPS is free; MyDeposits costs around £30-£35 per deposit and i dont know about TDS

tbs624

As Clutton says, there are 3 deposit schemes and it is the LL who is responsible for registering the deposit.

The free scheme, DPS, requires the LL to lodge the whole deposit with the scheme, whereas the other 2 schemes allow the LL to retain the deposit money for the duration of the tenancy and offer insurance-backed cover, which is why there are fees involved.

Some LLs seek to pass the fee on to the T, as a one-off charge: grossly unfair IMO because:

(a) the LL is legally obliged to register the deposit
(b) the T has no choice in which scheme the LL signs up to
(c) the LL can set the fee down against profit

If your LL wants to charge you a fee for registering your deposit ask him/her to use DPS instead. From a T's point of view there is little to choose between the 3 schemes.

Tenants being charged for their deposit to be registered should have been foreseen when the deposit legislation was drafted.

Notlob

tbs624 wrote: »

As Clutton says, there are 3 deposit schemes and it is the LL who is responsible for registering the deposit.

I think you will find that it is whoever receives the deposit that is responsible for protecting it i.e. agent also liable.

tbs624 wrote: »

Some LLs seek to pass the fee on to the T, as a one-off charge: grossly unfair IMO because:

(a) the LL is legally obliged to register the deposit
(b) the T has no choice in which scheme the LL signs up to
(c) the LL can set the fee down against profit

If your LL wants to charge you a fee for registering your deposit ask him/her to use DPS instead. From a T's point of view there is little to choose between the 3 schemes.

Tenants being charged for their deposit to be registered should have been foreseen when the deposit legislation was drafted.

Also, my understanding is that it is not permissible for the tenant to be specifically charged for deposit protection.

tbs624

Notlob wrote: »

I think you will find that it is whoever receives the deposit that is responsible for protecting it i.e. agent also liable.

Thanks for your response.Have previously posted on LAs responsibilities on deposits, including links to specific cases. However, check the OP's question in this thread - "is it the Ts or the LLs responsibility to scheme register"

Notlob wrote: »

Also, my understanding is that it is not permissible for the tenant to be specifically charged for deposit protection.

It ought not to be but the there have been a number of posts on here from LLs who claim that they do exactly that. It is also "not permissible" for a LL to not scheme-register a tenant's deposit but there are still LLs who fail to comply with the legislation. Do post up a specific source on the question of LLs charging though - that would be helpful

Notlob

tbs624 wrote: »

It ought not to be but the there have been a number of posts on here from LLs who claim that they do exactly that. It is also "not permissible" for a LL to not scheme-register a tenant's deposit but there are still LLs who fail to comply with the legislation. Do post up a specific source on the question of LLs charging though - that would be helpful

I looked for a source but all I came across was the following from CLG.

Can a landlord or agent pass on the cost of joining an insurance-based scheme to the tenant?

The Government's intention was that both types of scheme should be free to tenants and that landlords who chose to use an insurance-based scheme should absorb the fee for protecting the deposit as part of the overall costs of operating their business. However, there is nothing in the legislation to prevent landlords passing on these costs.

I stand corrected!!!!

Notlob