FlatFair Desposit Scheme

pid2004

Hi there, my estate agents is asking me to use flatfair rather than take a deposit from a tenant. Are there any landlords out there that have used flatfiar deposit scheme? Any reviews/opinions/thoughts please.
Here is the link :https://flatfair.co.uk/
Thanks.

Comms69

Sounds like a bad idea.


They don't insure you against any damage; the tenant still pays.


Literally may as well not take a deposit.

Heliflyguy

From a tenants point of view it doesnt look great, if you care about that.

Flat joining fee for a 2 bed round my way would be in the region of £300 inc VAT.

It would cost the tenant £100 to arbitrate any payments for damage when leaving (over fair wear and tear).

Thats just a quick look but apparently I can see the world amongst other things with the deposit I didnt have to pay, any such claims leads me to think there will be problems as a tenant.

Just to add.

https://www.theguardian.com/money/2017/jun/10/deposit-free-renting-will-tenants-lose-out

@ Daniel J you need permission to post as a company I have reported your post.

Pixie5740

pid2004 wrote: »

Hi there, my estate agents is asking me to use flatfair rather than take a deposit from a tenant. Are there any landlords out there that have used flatfiar deposit scheme? Any reviews/opinions/thoughts please.
Here is the link :https://flatfair.co.uk/
Thanks.

Your estate agents? You're not using one of those crappy chains listed on Flat Fair's website as your letting agent are you?

From a tenant's point of view it sucks donkey balls. You're paying out money in membership fees that you'll never see back and can still be charged for damage at the end of your tenancy.

From a landlord's point of view I would be concerned that the membership fees put tenants off giving me a smaller pool to choose from.

How impartial is the dispute resolution service?

Comms69

Pixie5740 wrote: »

Your estate agents? You're not using one of those crappy chains listed on Flat Fair's website as your letting agent are you?

From a tenant's point of view it sucks donkey balls. You're paying out money in membership fees that you'll never see back and can still be charged for damage at the end of your tenancy.

From a landlord's point of view I would be concerned that the membership fees put tenants off giving me a smaller pool to choose from.

How impartial is the dispute resolution service?

They buy the debt £ for £ - I'm only taking a wild stab in the dark that it's not.


Which means it's not regulated.


Which I would suggest means it's unlawful.

theartfullodger

The"membership fee " sounds like a deposit under the definition in the Act**. So landlord liable for 3xpenalty & any s21 invalid.

Whole thing sounds like an unnecessarily complicated way of raising fees for this "scheme/scam". As a landlord there seems only downside from this cunning plan. Can you kindly explain the advantages to me please? I'm a bit dim, OAP....

Original companies house filing has Daniel - with Forest Row address - as chief operating officer. Are you being shy Danny?

Avoid!


** What is a deposit... See HA 2004 s213(8)
http://www.legislation.gov.uk/ukpga/2004/34/section/213

(8) In subsection (7) “deposit” means a transfer of property intended to be held (by the landlord or otherwise) as security for—

(a) the performance of any obligations of the tenant, or
(b) the discharge of any liability of his,
arising under or in connection with the tenancy.

That fee is a deposit. Clowns...

hb2

Question. How on earth can this scheme give the landlord 'double protection' as claimed on their website?

Clue - It can't.

Comms69

theartfullodger wrote: »

The"membership fee " sounds like a deposit under the definition in the Act. So landlord liable for 3xpenalty & any s21 invalid.

Whole thing sounds like an unnecessarily complicated way of raising fees for this "scheme/scam". As a landlord there seems only downside from this cunning plan. Can you kindly explain the advantages to me please? I'm a bit dim, OAP....

Original companies house filing has Daniel - with Forest Row address - as chief operating officer. Are you being shy Danny?

Avoid!

The company address; atleast from what I can tell is just a postbox.

In two years they’ve made 300k... pretty sure my local does better than that.

G_M

Just a quick assessment but....


if you are a tenant, do not agree to use this scheme. If necessasry, just find a different property (from a different letting agent if necessary).


if you are a landlord, do not believe the marketing hype. Stick to a reputable, government approved deposit scheme and manage your leting business in a professional manner

pid2004

Thanks Comms69 for replying with Daniel Js message as otherwise I would have completely missed it.


Pixie5740 we are planning on use Haart estate agents. They are fairly large. They keep suggesting that flatfair is a great way to get a tenant etc.



Thanks everyone for your replies.



Confused on what to do as why would Haart suggest a scheme that could s21 invalid?

Comms69

pid2004 wrote: »

Thanks Comms69 for replying with Daniel Js message as otherwise I would have completely missed it.


Pixie5740 we are planning on use Haart estate agents. They are fairly large. They keep suggesting that flatfair is a great way to get a tenant etc.



Thanks everyone for your replies.



Confused on what to do as why would Haart suggest a scheme that could s21 invalid?

I’d wager they get a commission from them.