interest on rental deposit

ColinHackett

Afternoon all.

I have just been going through my tenancy agreement and came across this.


The Deposit.

The deposit is held by the Agent as Stakeholder. the agent is a member of the tenancy deposit scheme.

Any interest earned will belong to the tenant.

it then goes on about why the deposit has been taken, damage etc...

Does this mean that i should get back my full deposit + interest (if there are no deductions)

Has anyone else come across anything like this before? i did a search but there are just millions of threads about deposits for buying a house.

Thanks.
Colin.

theartfullodger

Odd: Are you tenant, landlord or agent>???

All agreements I have seen say tenant does not get interest.

Where is the tenancy agreement from (eg WH Smiths, landlord association...)

ColinHackett

i am a tenant, renting the property through an agent. as to where they got there agreement from i have no idea.

Oh and I am in england, before anyone asks.

Thanks.
Colin.

theartfullodger

Well, you'll be entitled to the interest then: But I'd treat this agent with deep suspicion as I doubt they know what they are doing...

Lokolo

theartfullodger wrote: »

Well, you'll be entitled to the interest then: But I'd treat this agent with deep suspicion as I doubt they know what they are doing...

Eh? So because they are allowing the tenant to keep the interest they don't know what they are doing?!

When I was a student I was allowed to keep the interest (although at that time interest was worth something). The LL didn't care about the extra few quid or the hassle. The deposit scheme paid a decent interest rate too.

Actually reading the OPs post I see what you mean....

ColinHackett

Any idea of what rate of intrest i should claim for as i am sure that they won't just offer it.

Would it be along the lines of the 8% that the banks have been paying back along with PPI claims?

Thanks,
Colin.

Lokolo

Is what you posted in your original post the exact wording?

kmmr

You could request any interest earned. Ie - what was actually earned. If it was held in a zero interest account, then you get nothing. Note that DPS don't pay interest I believe, so there would be no interest.

You don't get to make up an interest rate!

theartfullodger

Lokolo wrote: »

Eh? So because they are allowing the tenant to keep the interest they don't know what they are doing?!
...

a) It's not normal practice - in my experience...
b) Why would an agent give themselves the extra work of having to work out interest payments etc - what with interest rates changing maybe several times during a tenancy - etc etc... doesn't make sense.

But yes, I could be rong.... they might be admirable - but £5 to an agreed housing charity says they ain't...

Cheers!

Lokolo

theartfullodger wrote: »

a) It's not normal practice - in my experience...
b) Why would an agent give themselves the extra work of having to work out interest payments etc - what with interest rates changing maybe several times during a tenancy - etc etc... doesn't make sense.

But yes, I could be rong.... they might be admirable - but £5 to an agreed housing charity says they ain't...

Cheers!

Yes I just read it the same as kmmr has read it, that it was in DPS or something. They are who I used and then interest was added onto the deposit when it was time to withdraw. The landlord couldn't be bothered with the hassle and we left the house in a perfect state so didn't take any deposit.

Rather than as you say, the Agent holding the money, having to calculate etc.

ColinHackett

ColinHackett wrote: »

Afternoon all.

The Deposit.

The deposit is held by the Agent as Stakeholder. the agent is a member of the tenancy deposit scheme.

Any interest earned will belong to the tenant.

Yes the the quoted section above is the exact wording.
Thanks