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awt19
19-03-2009, 10:33 AM
My landlord charged me a £60 "Administration Fee" to protect my deposit.

Can he do this?

Thanks

sherifffatman
19-03-2009, 10:53 AM
Has it been specified that this is a charge solely for the deposit protection or is it an admin charge to include other aspects?
Nothing in HA2004 says it is illegal to do so though i think there may be inferences in indiv t&cs to the contrary
Fair dos I say - it is a service for you the T rather than the LL after all.

awt19
19-03-2009, 10:58 AM
Has it been specified that this is a charge solely for the deposit protection or is it an admin charge to include other aspects?
Nothing in HA2004 says it is illegal to do so though i think there may be inferences in indiv t&cs to the contrary
Fair dos I say - it is a service for you the T rather than the LL after all.

It was solely for the deposit protection.

And I disagree, the service also protects the LL as well. If the money isnt protected, the LL can cause as much damage as he likes, and the LL would still have to pay back the full deposit.

Poppy
19-03-2009, 10:58 AM
Some landlords charge tenants for protecting deposits, some landlords pay to protect deposit themselves. Swings and roundabouts.

rajeshk4u
19-03-2009, 11:06 AM
Compared to the hundreds of pounds some letting agents charge tenants, this £60 does not seem unresonable. Though I charge £35 and don't charge for subsquent years renewals....

Though, I have been recommended to call it Admin fee rather then a Deposit fee (for legal reasons). Also, your landlord may be charging you more if they carried out a credit check.

To be honest, I am annoyed at this deposit scheme (not at the idea of the scheme but how it works), because most shrewd tenants withhold the last month's rent and tell the landlord go use the deposit!. So what is the point of the scheme? It does nothing to benefit protect the landlord. It should be a 2 way street!

GillsMan
20-03-2009, 17:46 PM
To be honest, I am annoyed at this deposit scheme (not at the idea of the scheme but how it works), because most shrewd tenants withhold the last month's rent and tell the landlord go use the deposit!. So what is the point of the scheme? It does nothing to benefit protect the landlord. It should be a 2 way street!

I'm charging 6 weeks rent for the deposit to hopefully avoid this scenario. :)

mind the gap
20-03-2009, 18:03 PM
I'm charging 6 weeks rent for the deposit to hopefully avoid this scenario. :)

So they don't pay you the last six weeks' rent, instead - or more likely, the last two months'....

GillsMan
20-03-2009, 18:15 PM
So they don't pay you the last six weeks' rent, instead - or more likely, the last two months'....

Good point. I have zero experience, but I'd expect that you're more likely to see people saying "take my last month's rent out of the deposit" than not paying anything at all for the last two months. That's just a guess though, you guys have a far more experience than me, so I expect you'll tell me that's wrong! :D

mind the gap
20-03-2009, 18:21 PM
Good point. I have zero experience, but I'd expect that you're more likely to see people saying "take my last month's rent out of the deposit" than not paying anything at all for the last two months. That's just a guess though, you guys have a far more experience than me, so I expect you'll tell me that's wrong!


Not really, I just thought there was a fatal flaw in your logic there! :)

In the end, if they are the sort of tenants who are hell-bent on are getting away without paying for any damage done, you are going to end up taking them to court/ deposit scheme adjudication. A boring fact of life, I'm afraid - there are no quick fixes.

Rodent1
21-03-2009, 00:27 AM
.....there are no quick fixes.

Term rent up front AND a dep equal in val to 2 mths rent works, also a fully ref G and lots of contact details for chasing debt !

mind the gap
21-03-2009, 07:54 AM
Term rent up front AND a dep equal in val to 2 mths rent works, also a fully ref G and lots of contact details for chasing debt !

True in principle...but it is a tiny minority of tenants - usually (a) foreign students whose governments or rich parents foot the bill for their study abroad or (b) members of Triads (according to this forum!), who, in practice, can afford the full fixed term's rent up front. Most cannot, so it would be unrealistic to ask for it. You risk losing tenants to other landlords if you insist on all those terms.

Guarantors, etc - yes, agreed.

DavidDerby
21-03-2009, 11:57 AM
I guess a LL can charge whatever they like for whatever they like, provided it's in the tenancy agreement and it's up to the tenant to accept the costs, negotiate or decline isn't it? Basic contract principle of offer and acceptance?

Here's an extract from particulars on a property I've seen up for rent:

APPLICATION FEE – An application fee of £95 (inclusive of VAT) is payable for a single applicant. Where an application is made by two or more persons, then an additional £35.25 (inclusive of VAT) will be charged per additional person. Completion of the application form is not the guarantee of a Tenancy. A Tenancy will only be granted upon the applicant passing the referencing system, the Landlord having vacant possession of the property, subject to the contracts being signed and the rent and deposit being received in cleared
funds.

AGREEMENT AND INVENTORY FEE - £300
(inclusive of VAT) on both the original tenancy and upon termination of the Tenancy.

The property has sat empty for some time....:rolleyes:

Rodent1
21-03-2009, 13:44 PM
True in principle...but it is a tiny minority of tenants - usually (a) foreign students whose governments or rich parents foot the bill for their study abroad or (b) members of Triads (according to this forum!), who, in practice, can afford the full fixed term's rent up front. Most cannot, so it would be unrealistic to ask for it. You risk losing tenants to other landlords if you insist on all those terms.

Guarantors, etc - yes, agreed.

Approx 5-10% of my T pay 6 mths up front.

mind the gap
21-03-2009, 14:01 PM
Approx 5-10% of my T pay 6 mths up front.
Obviously Triad gang members then :D

nick..
21-03-2009, 20:39 PM
My landlord charged me a £60 "Administration Fee" to protect my deposit.

Can he do this?

Thanks

He can ask for what he wants, but you don't need to agree

In fact, with rents plummeting at the moment, you should really push for a reduction in rent rather than accepting punitive charges for something they should already be covering if they are at all professional

Just show him the abundance of properties on rightmove and tell him you're happy to find somewhere that doesn't apply a TDS handling charge

johnboy
22-03-2009, 07:57 AM
I am sure i read somewhere that the tenant cannot legally be charged for the protection of the deposit. Cant remember where i saw it though.

That doesnt stop them charging it and calling it a admin charge though.

jeffrey
22-03-2009, 22:47 PM
I am sure i read somewhere that the tenant cannot legally be charged for the protection of the deposit. Cant remember where i saw it though.
Well, L can charge- so you might have been mistaken.

sherifffatman
23-03-2009, 00:10 AM
It was solely for the deposit protection.

And I disagree, the service also protects the LL as well. If the money isnt protected, the LL can cause as much damage as he likes ??? , and the LL would still have to pay back the full deposit.

You've missed the point there really.
The TDS is to protect the T's deposit from being retained unfairly by LL/LA.
It rarely protects the LL from T damages/abscondance and the 3xcompo + deposit fine for non-compliance is entirely disproportionate to the perceived 'crime'.
When are we getting legislation to protect LLs from dodgy T references?

lorenzo
23-03-2009, 07:38 AM
You've missed the point there really.
The TDS is to protect the T's deposit from being retained unfairly by LL/LA.
It rarely protects the LL from T damages/abscondance and the 3xcompo + deposit fine for non-compliance is entirely disproportionate to the perceived 'crime'.
When are we getting legislation to protect LLs from dodgy T references?
I think we need to nuke the whole Housing Act and start from scratch.

The only problem is, there is no guarantee that we'd end up with anything even remotely coherent, going on this gu'mint's record. :(

Gigabyte
23-03-2009, 12:49 PM
maybe ask what he is actually doing for that 60quid? How is the LL reasonably incurring £60 of costs doing something he should legally be doing anyway! –

I know some of these schemes you have to pay for but if the LL has a couple of houses then surely the cost isn't that much in relative terms. I would absolutely refuse to pay the full amount - likelihood is, if they are charging rather inflated 'admin' fees at this stage they will do so when it comes to moving out time...

plenty of other houses on the market, but try to negotiate first shows you is reasonable innit
.