New rules over deposits held by overseas landlords?

Wookster

I've just had a phone call from my estate agent. They have said that there is apparently new legislation covering deposits held by overseas landlords - apparently this means that deposits are held by a government agency rather than by the landlord.

All very well I thought, until she said that there was a one off fee for moving the deposit into the new scheme. £50 no less.

It sounds a bit dodgy to me and £50 is an awfully convenient round number.

Can anyone give me the heads up as to if this is correct or not and if I have to pay it?

thesaint

There is new legislation, it isn't just oversea's landlords that it is applicable to.

Letting agents are generally charging a fee to the landlords on their books, it's up to them how much they charge.

Search this site for 'Tenants deposit scheme'. Or 'Google' it.

Wookster

But does this really mean that estate agents can charge whatever they see fit?

I smell a rat here.

peter999

Only deposits taken from 6 April for new tenancies need to go in the scheme.
I guess agents may decide to move all deposits into the scheme as a matter of course.

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"

The Deposit Protection Service
http://www.depositprotection.com/Public/Default.aspx

The Deposit Protection Service (The DPS) provides the only free scheme and is open to all landlords and letting agents.

peter999

Wookster

Thanks Peter - I've had a look at the website and it looks like this is free to tenants.

Is this correct?

peter999

Wookster wrote: »

Thanks Peter - I've had a look at the website and it looks like this is free to tenants.

Is this correct?

WARNING: This is a new scheme & your Letting Agent may not understand it !!

It's the legal responsibility of the Landlord.
The letting agent shouldn't be asking you, the tenant.

The Letting Agent should charge the Landlord or ask them to use the Custodial (free) Scheme, assuming they still have your deposit to pay into it.

There are two types of tenancy deposit protection scheme available for landlords and letting agents.

-Custodial scheme
free to use and open to all Landlords and Letting Agents.
the landlord or agent then pays the deposit into the scheme

-Insurance based scheme
the landlord retains the deposit and pays a premium to the insurer.

http://www.direct.gov.uk/en/TenancyDeposit/DG_066383

peter999

harryhound

Am I right in thinking that in the custodial scheme the TENANT gets the interest BUT in the insurance schemes the LANDLORD gets the interest?

Harry

rosysparkle

In the insurance schemes, whoever is holding the deposit (landlord or agent) gets the interest.

We've been members of the TDSRA for over two years, so we've been passported into The Dispute Service and the cost to us has rocketed. We wouldn't charge tenants though! That's shocking. :eek:

We pass on the cost to landlords, as we are entitled to do, but as we have a relatively high number of properties under management the individual cost isn't that high for each landlord (and we are discounting the cost to landlords with multiple properties).

thesaint

harryhound wrote: »

Am I right in thinking that in the custodial scheme the TENANT gets the interest BUT in the insurance schemes the LANDLORD gets the interest?

Harry

In the custodial scheme, the landlord would receive the interest on the deposit if the tenancy agreement states that the tenant will have their deposit returned without interest added.

losgiganteskid

thesaint wrote: »

In the custodial scheme, the landlord would receive the interest on the deposit if the tenancy agreement states that the tenant will have their deposit returned without interest added.

Are you sure on that one Roger Moore - my understanding is that the Custodial scheme is funded out of interest on deposits held in the scheme - although they MAY be scope for some of the interest to be paid to the tenant !!

thesaint

Roger Moore