New Landlord Deposit Rules

Guy_Montag

You have to provide evidence of which scheme you have paid the deposit into within 15 days of the beginning of the tenancy. So that's how the tenant will know if you have put the money into a scheme.

You cannot issue a S21 eviction notice unless the money is in a scheme.

By giving the tenant 3x the deposit for LL non-compliance (that could be up to 4 1/2 months rent in a 6 month tenancy!) it encourages them to police the system, rather than relying on the police (unlikely) or trading standards.

The reason it was introduced is that 1 in 5 tenants believed landlords have retained too much of the deposit up to £21m. source

Finally one just has to look at, for example, EagerLearner's thread to see how much time & money is spent trying to sort these issues out. It must cost the country millions in personal time & time in court sorting out these problems. What the govt. has proposed is a self-funded, self-policing method to help prevent these problems.

Gorgeous_George

You could ask for extra rent in advance i.e, 6 weeks rather than 4 weeks perhaps. Not sure if thismoney could be used to protect against damage.

I´ll just add the cost of the scheme to the balance sheet and recover it through increased rent - no problem.



GG

Guy_Montag

Providing someone is prepared to pay the higher rent.

peter999

flash_nanny wrote: »

...Does anyone know what I should be doing with it?

Tenancy Deposit Protection Scheme
http://www.direct.gov.uk/en/TenancyDeposit/index.htm

"From 6 April 2007, all deposits taken by landlords and letting agents must be protected by a government-authorised tenancy deposit protection scheme."

peter999

mystic_trev

I really can't see what the fuss is about. I use an Agent for my BTL's so I never see the deposit anyway. If people can't be bothered to comply with the new rules, it'll serve them right if they get stuffed by their tenants.

Tenant to Landlord - I see you haven't complied with the new deposit scheme, please cough up three times my deposit.

Landlord to tenant - Get stuffed you're not getting a penny out of me!

Tenant to Landlord - Thats OK, four months of not paying any rent should cover it.

ds1980

Trev

if you use an agent why do they keep the money????????????

Thats just as scandalous as whats happening. I believe its illegal for a start is it not???

Where exactly does it state this 3 x stuff anyway i can't find it.

Of course you can get it back in other ways (tax deductable, increased rents, more deposit) but thats not the point. Its the same old story the people who are making are getting penalised.

I think the scheme is great in principle but what i don't understand is why the landlord is paying for something that protects the tenant!!!

Any other "insurance scheme" protects the person paying for the insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I don't pay for my home insurance for geoff down the road to claim when he's got a leaking roof!

Guy_Montag

You don't have to pay, use the deposit protection scheme, it's free.

I heard the 3 x thing on the radio (You & Yours I think), someone from Hamilton Fraser, but I have seen it on the web.

BobProperty

DS - I'm sure I read a thread somewhere where the landlord was going to add a clause to the tenancy agreement to say that the tenant pays the insurance premium.

mystic_trev

What if your landlord isn’t protecting your deposit?
You can apply to your local county court. The court can order the landlord or agent to either repay the deposit to you or protect it in a scheme. If your landlord or agent has not protected your deposit, they will be ordered to repay three times the amount of the deposit to you.

http://www.direct.gov.uk/en/TenancyDeposit/DG_066373

TJ27

In my area a few years ago an agent, acting on behalf of various landlords, took deposits totalling something like £50k from various tenants.

Six months later he disappeared without a trace.

So many of us may believe that the new scheme is scandalous, and I'm sure it ain't perfect, but it's partly to prevent the above from happening.

Several landlords have told me that they simply will not bother taking a deposit when the new scheme comes into force, because it's more trouble than it's worth. And what's three times nothing?