Tenancy deposit managed by landlord instead of agent

jjl22

I have been privately renting for 4 years and my contract has just come up for renewal. My landlord has asked if it is ok that she holds the tenancy deposit instead of the letting agent. I assume this will be in a government protected scheme.

She cited reasons that if the letting agent goes bankrupt then the deposit will be lost.

Should I agree for the deposit to be handled by my landlord instead? Does it really make any difference to me?

Thanks for your help in advance!

Jem

Pixie5740

This is really something for the landlord to sort out with the letting agency because it's the landlord who has a contract with the letting agency.

I would have thought that since the deposit is your money that providing it has been correctly protected then you should still be able to get your money back even if the letting agency goes bankrupt because either the deposit scheme will have physical custody of your money or your money will be insured.

That said, the protection of the deposit is ultimately the responsibility of the landlord regardless of whether a letting agency is used so I can understand why the landlord would want some kind of control over your money during the tenancy.

Guest101

jjl22 wrote: »

I have been privately renting for 4 years and my contract has just come up for renewal. My landlord has asked if it is ok that she holds the tenancy deposit instead of the letting agent. I assume this will be in a government protected scheme.

She cited reasons that if the letting agent goes bankrupt then the deposit will be lost.

Should I agree for the deposit to be handled by my landlord instead? Does it really make any difference to me?

Thanks for your help in advance!

Jem

As long as it's protected it makes no difference what so ever.

In reality you wont even know. The LL is always responsible for the deposit.

jee

All you need to know is that the deposit is protected- you can ask your LL. It makes no difference to you who holds it.

G_M

As said, provided the deposit is registered in an approved scheme it does not matter to you whether your LL registers it or pays an agent to register it on his behalf.

In fact it is none of your business.

If the LL/agent uses an 'insurance' scheme, then the physical money is held by the LL/agent, but is insured by the scheme (so you are protected).

If not, the the physical money is handed over to the scheme who hold onto it - again protecting you.

read:
* Deposits: payment, protection and return

martindow

jee wrote: »

All you need to know is that the deposit is protected- you can ask your LL. It makes no difference to you who holds it.

I would then go on to check it actually is protected in the scheme. LLs are supposed to send you written details to show you where it is protected.

steve2005

martindow wrote: »

I would then go on to check it actually is protected in the scheme. LLs are supposed to send you written details to show you where it is protected.

Sorry to semi-hijack a thread...
Does this apply even if the LL is doing everything through an agency?
ie, should I be contacting the agency I use to get the reference number for the Deposit Protection? I don't even know the name of my tenant as literally everthing is taken care of by the agency we're using.

Horseygirl123

steve2005 wrote: »

Sorry to semi-hijack a thread...
Does this apply even if the LL is doing everything through an agency?
ie, should I be contacting the agency I use to get the reference number for the Deposit Protection? I don't even know the name of my tenant as literally everthing is taken care of by the agency we're using.

Most certainly check yourself to make sure deposit is protected and that your tenants have received the prescribed information.

I only once used an agency to arrange deposit protection as we were away for 2 months just as old tenants were due to move out. When we met the new tenants on our return we found out they hadn't received the PI and after contacting the agency it transpired they hadn't even registered the deposit yet.

Guest101

steve2005 wrote: »

Sorry to semi-hijack a thread...
Does this apply even if the LL is doing everything through an agency?
ie, should I be contacting the agency I use to get the reference number for the Deposit Protection? I don't even know the name of my tenant as literally everthing is taken care of by the agency we're using.

You have a contract with the tenant. Anything goes wrong and they sue you.

So it's up to you whether you decide to protect yourself or not

steve2005

Guest101 wrote: »

You have a contract with the tenant. Anything goes wrong and they sue you.

So it's up to you whether you decide to protect yourself or not

I'm not saying you're wrong, but how can I have a contract with someone I've never met and never will meet?

I'll speak to the agency and ask for the information, just to make sure everything's done.

Guest101

steve2005 wrote: »

I'm not saying you're wrong, but how can I have a contract with someone I've never met and never will meet?

I'll speak to the agency and ask for the information, just to make sure everything's done.

Ok You have 2 contracts.

1: The agency, who manage your property. This contract likely (check) includes authority to sign on your behalf.
2: The tenant who rents your property. Your agent (they are in essence your employee/representative) has signed a contract with them on your behalf. - you should check this too.

You would probably have a claim if your agent failed in their obligations. But that claim would be completely seperate to the one the tenant would have against you. - taking a hands off approach is the quickest way to find yoursel fwith such a claim. Not saying you're going to, but agents aren't qualified, just ajoe bloggs with a business card.