Deposit Protection Insurance

nifferwilko

Hey everyone

Right, these darn deposit schemes.

My little sis is about to sign a tenancy agreement (AST) and it has a point about the deposit scheme. Basically it's saying that she has to pay a proportion of the deposit insurance scheme that the landlord is taking out (not exceeding £10 - how kind!) Surely that can't be right. Why should the tenant have to pay for the landlord's insurance. Especially when there is a free scheme

Suggestions/thoughs anyone

seven-day-weekend

The deposit scheme is a pain in the arris. I'm not surprised people are trying to find a way round it.

No, I'm sure she is not supposed to pay this charge. Have a word with the agent.

thesaint

I do not think that the landlord is supposed to charge for the deposit to be put into the scheme, but I am unaware of any sanction if they do.
The scheme is not yet compulsory, so if your sister is signing before it is compulsory, then the landlord could be within his rights to charge.

£10 doesn't seem to be a lot to have her deposit protected anyway, as landlords can simply raise their admin fees without disclosing what it is anyway.
The landlord can choose whatever scheme is most beneficial to them, so do not have to offer a choice.

If she is dead against it, she can choose somewhere else to live I guess.

nifferwilko

I thought it was a bit 'odd' but I did have a look on the official site and it doesn't say anything specific about who has to pay

Although she is paying the deposit now, the tenancy doesn't start until september so she will be covered. I suppose £10 isn't too much to me, but she is a poor student.

Thanks for the advice