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The Residency Scheme Subscription.
g7orge
Posts: 1 Newbie
Hello,
My daughter is about to rent a flat - it was advertised as no deposit however she has been advised that she will need to sign up to the letting agents Residency scheme subscription - This will be £48 per month per person on top of the rent. I assume this is some sort of insurance to cover the landlord as there is no deposit?
She has also been advised that this scheme is optional but the landlord insists on his tenants being in the scheme so if she opts out she may not be offered the flat.
This seems a bit of a con as although it is good for people not to have to keep finding a deposit upfront, they will be effectively paying a deposit in installments but with no chance of getting it back - has anyone else heard of this? - is this a backdoor way of letting agents are using to charge fees
My daughter is about to rent a flat - it was advertised as no deposit however she has been advised that she will need to sign up to the letting agents Residency scheme subscription - This will be £48 per month per person on top of the rent. I assume this is some sort of insurance to cover the landlord as there is no deposit?
She has also been advised that this scheme is optional but the landlord insists on his tenants being in the scheme so if she opts out she may not be offered the flat.
This seems a bit of a con as although it is good for people not to have to keep finding a deposit upfront, they will be effectively paying a deposit in installments but with no chance of getting it back - has anyone else heard of this? - is this a backdoor way of letting agents are using to charge fees
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Comments
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Find another flat, it's a money making conAn answer isn't spam just because you don't like it......0
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Indeed. Even if you agreed with the principle of the tenant paying for such insurance, it sounds vastly over-priced for the risk.0
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It's a con. Find another.
If they do this now, they've probably got other ways to make a tenant's time renting through them an absolute misery.0 -
Hole in one. Yes, it is a backdoor way by which LAs are trying to make up for the tenant fees ban. £48/month is preposterous.
If she gets it in writing that the landlord/LA insist on this (as opposed to the protected deposit scheme) to qualify to let, she could make a formal complaint to the LA and then to the relevant redress scheme (LAs need to be signed up to one by law from 1 June).
Making a complaint might not do your daughter much good but might end up helping other potential tenants.
https://inews.co.uk/opinion/how-letting-agencies-are-using-loopholes-to-charge-fees-ahead-of-the-tenant-fees-ban/is this a backdoor way of letting agents are using to charge fees0 -
walk away.
Fast.0 -
It will be the letting agent insisting on the scheme. They make the money on it.
It’s just a con. Insist on a deposit0
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