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Interest on tenancy deposits
Yorkie1974
Posts: 62 Forumite
Just curious, but as I understand it, the tenancy deposit is regarded as money belonging to the tenant. If the agent or landlord keeps the money, and makes interest on that money over a prolonged period, who does the interest belong to? Presumably, the issue of betterment comes into play here - the landlord should not be in a better position at the expense of the tenant.
Our deposit was £900 which the agent held for five years.
Our deposit was £900 which the agent held for five years.
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Comments
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What is stated on the Tenancy Agreement - my one says the Landlord owns any interest.
It also costs the Landlord or the Agent to protect the deposit via one of the TDS, I pay around £21 a year or on when the tenent renews the Tenance Agreement.
If the LL put the £900 into NS&I savings bond they would only get £13.50 a year at 1.5%.0 -
Yorkie1974 wrote: »Just curious, but as I understand it, the tenancy deposit is regarded as money belonging to the tenant. If the agent or landlord keeps the money, and makes interest on that money over a prolonged period, who does the interest belong to? Presumably, the issue of betterment comes into play here - the landlord should not be in a better position at the expense of the tenant.
Our deposit was £900 which the agent held for five years.
The agent could have probably earned 1% interest on that in a business bank account (£9) but would have paid £9.50 in fees to the insured scheme to insure the money so no-one is any better off. A landlord's fee would have been £22.20 if they wanted to hold on to it.
The money received by the scheme runs the scheme.
https://www.depositprotection.com/about
The landlord is in this to make money. What if the value of the property increased during the time you were a tenant...would you like a share of that too?:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Thanks, folks.0
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Yorkie1974 wrote: »Just curious, but as I understand it, the tenancy deposit is regarded as money belonging to the tenant. If the agent or landlord keeps the money, and makes interest on that money over a prolonged period, who does the interest belong to? Presumably, the issue of betterment comes into play here - the landlord should not be in a better position at the expense of the tenant.
Our deposit was £900 which the agent held for five years.
ofcourse they should, its a business!0
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