Tenant's Deposit Protection

Tiglet

I've just had a letter from my LA telling me that if I enter into a new tenancy with my existing tenants after April 6th, then their deposit must be held by the agents under an insured scheme.

I was under the impression that I would be able to choose to have it held in a custodial scheme (which doesn't cost anything as it is funded by the interest on the deposit). I also thought that under an insured scheme I would keep the deposit myself (and the interest it earns).

Since this is a new scheme, it's possible that I and/or the agents have got this wrong, but it seems like another excuse for the agents to charge me some more money.

Does anyone else have any experience of how these schemes are being set up? Thanks.

RHemmings

The TDP is supposed to be free for all, not a free-for-all.

Topsy1_2

In theory, yes, you do get to choose.

There are three schemes under the new plan, 1 custodial and 2 insurance.
The custodial and first insurance scheme are mainly for private LLs and agents who do not want to hold the deposit.

The second insurance is aimed primarily at agents, (although LLs can join too), and incorporates the old style tenancy deposit scheme, whereby the agents hold the deposit in a client account, but still benefit from the mediation etc etc that the TDP provides. This sounds likely to be what your agents have.

I'm guessing your property is fully managed by the agents?? I would check the managament contract you have with them to see what exactly they have stated about the holding of deposits. If you have signed to say that they collect it and hold it on your behalf, then there may not be alot that you can do, even though this is a new scheme being implemented. And yes, I suspect that they will want to impose a moderate 'admin' charge... :rolleyes:

If its not managed but just let and they do not generally hold your deposit, then you may well have an argument to insist that you choose which way the deposit is going to be held.
It really comes down to the your management/letting contract with the agent and the wording, I'm afraid..

HTH.

stphnstevey

Is my understanding correct that tenacies started before 1st April 07 or ongoing at the 1st April 07 don't need to use or become incorporated into one of these schemes?

amboy

stphnstevey wrote: »

Is my understanding correct that tenacies started before 1st April 07 or ongoing at the 1st April 07 don't need to use or become incorporated into one of these schemes?

Correct.


I also know of a lot of LL who tenancies end at the same time of year who feel they will struggle to conform with the schemes say they will stop taking deposits.

hmmmm............

stphnstevey

amboy wrote: »

Correct.


I also know of a lot of LL who tenancies end at the same time of year who feel they will struggle to conform with the schemes say they will stop taking deposits.

hmmmm............

So how would they cover any damages?

PS - know anything of new compulsory electrical safety tests come in at the start of this month?

thesaint

stphnstevey wrote: »

So how would they cover any damages?

PS - know anything of new compulsory electrical safety tests come in at the start of this month?

I believe the correct date is the 6th of April for the neew scheme.

You've posted on another thread that certificates are compulsory, where did you get this information from?

Doozergirl

Can I hijack this thread please? My tenancy agreement ends on 6th April!

The property is let and managed, I think (although the LL lives 6 doors away) by a letting agent. I am considering signing a new agreement but could someone please tell me exactly what I should be looking/asking for in the new AST with regard to TDP please?

thesaint

Doozergirl wrote: »

Can I hijack this thread please? My tenancy agreement ends on 6th April!

The property is let and managed, I think (although the LL lives 6 doors away) by a letting agent. I am considering signing a new agreement but could someone please tell me exactly what I should be looking/asking for in the new AST with regard to TDP please?

There doesn't have to be anything in the tenancy agreement, the landlord/letting agent have 14 days to notify you which scheme your deposit is held in.

Guy_Montag

If the LL/LA doesn't put the money into a scheme they will have to pay 3 x the deposit to the tenant. In addition the LL cannot serve the tenant a S21 eviction notice until the money is deposited in a scheme.

Lazy_Runner

Doozergirl

Depends on the tenancy agreement. If you already have an agreement which ends on 6th April and you don't sign a new contract, then the LL doesn't have to do anything with the deposit. That is, if you continue with I believe what is called a continuing periodic tenancy then the deposit continues to be held in the same way as it was when the agreement was first signed.
However if you sign a new agreement on or after the 6th, then the LL will have to let you know how the deposit is going to be held.
Or so I understand.