PDA

View Full Version : Who decides what happens to tenant’s deposit?



Blue Eyes
19-02-2010, 09:40 AM
The LA has control of the tenants deposit but there is an on going dispute between them & LL (me), which is very likely to end with a termination the contract.

In preparation of this, and on advise from another thread on this forum, I have opened a DPS account and asked the LA to transfer the deposit into that account; there is nothing mentioned about the deposit scheme in the contract.

They have replied that, as they manage the property, the deposit should be held by them, which is in line with the TDS rules.

Can this be correct? Who’s the dog and who’s the tail?

littlemisslettings
19-02-2010, 12:40 PM
Is the LA saying that they have protected the deposit on the landlords behalf and as such they are holding the bond?

Blue Eyes
19-02-2010, 19:43 PM
Is the LA saying that they have protected the deposit on the landlords behalf and as such they are holding the bond?

I have every confidence that they have protected the deposit, however I have never been informed how and under which scheme.

They are holding this on the LL behalf and while I am aware that they can also be liable if the deposit is not properly protected, they can be assured that it is, if they themselves move the deposit into another secure scheme. This is all that I am requesting but their stance is that while ever they are responsible for the management, they should determine where it is held.

They seem to be using the TDS rules to validate this position. I am wondering if this is correct or not. My view is that they are acting on my behalf and they should, therefore, carry out my wishes.

havensRus
20-02-2010, 09:26 AM
I have every confidence that they have protected the deposit, however I have never been informed how and under which scheme.


Do not be so confident without any written proof!!




They seem to be using the TDS rules to validate this position. I am wondering if this is correct or not. My view is that they are acting on my behalf and they should, therefore, carry out my wishes.


yes, A is acting on your behalf, therefore should provide you will all information that you require/ask for. The tenancy is an agreement between you and the T, so if something goes wrong at the end, or there is a dispute, the buck stops with you and the T will sue you for the return of the deposit.
The agreement between you and the agent is separate to the tenancy agreement, and should be dealt with separately. You need to find the agreement and read it carefully before determining what to do about its continuation or termination.

Blue Eyes
20-02-2010, 11:16 AM
Do not be so confident without any written proof!!

No ok, point taken; I suppose I should ask.

I’ve looked again at the agreement with the agent. It states that, where they hold the deposit, the tenancy will come under the Tenancy Deposit Scheme for Regulated Agents. There are various clauses regarding charges for the service and procedures for resolving disputes, however nothing in relation to any obligation for them to hold the deposit.

As it states, where they hold the deposit, it infers that there is an option that they do not hold the deposit. I suppose what I’m saying is that I now wish to take that option.

There is a reference elsewhere in the agreement that refers to Interest on money held by them on behalf of their client, which will remain theirs and the LL has no right of claim.

I do not think this can be used as an objection to removing the money however. I’m not making any claim to the interest; I just want to remove the money elsewhere so that no further interest will be incurred.

If, as you say, the buck stops with me, morally, I think I should have the say on how it is handled.

Perhaps, I should ask them under what grounds they think they have the authority to decide where the deposit is held?

cocobean
20-02-2010, 15:09 PM
How long does the LA offer a written guarantee for ?

It's only guaranteed for 6 months to a year in Scotland, during that time or afterwards, arrangements with the Tenants are to be sought to pay up by installements the amount of deposit required.

Blue Eyes
20-02-2010, 17:24 PM
How long does the LA offer a written guarantee for ?

Sorry, I'm not sure what you mean. The deposit is required before the tenant can move into the property.

What sort of guarantee are you considering?

The deposit scheme is there to protect the tenant's money and there are procedures to ensure the withholding of any of the deposit, at the end of the tenancy, is fair.

cocobean
21-02-2010, 11:43 AM
Sorry, I'm not sure what you mean. The deposit is required before the tenant can move into the property. .

Yes, I'm quite well aware of this.


The deposit scheme is there to protect the tenant's money and there are procedures to ensure the withholding of any of the deposit, at the end of the tenancy, is fair.

Are you saying the Tenant provided the LA deposit scheme with hard cash ?

LA councils operate the deposit rent (guarantee) scheme usually for Tenants on benefits, homeless etc.They will on paper, guarantee the deposit for six months to one year. During/after the year guaranteed, LL have to make arrangements to get the deposit from the Tenants, by way of installments.

Usually homeless accommodation reference organisations, Shelter, Crisis, the LA will advise the Tenant within the first year of the Tenancy, they should start saving up money to replace the guaranteed deposit that has been supplied as it will expire in one year.

IMHO and experiences with the scheme, the guarantee for a year is not worth the paper it’s written on.


http://www.privaterentedsector.org.uk/rent_deposit_schemes.aspx

http://england.shelter.org.uk/__data/assets/pdf_file/0003/23385/Advice_booklet_deposit.pdf

http://www.ambervalley.gov.uk/NR/rdonlyres/5FB1ED96-6473-45ED-9D4B-66F88A4781CA/0/Appendix5HelpingYouleaflet.pdf

http://www.eastrenfrewshire.gov.uk/rent-deposit-scheme.pdf

http://www.baseswiki.org/en/UK,_Schemes_for_Resolving_Tenancy_Deposit_Disputes

westminster
21-02-2010, 12:39 PM
LA councils operate the deposit rent (guarantee) scheme usually for Tenants on benefits, homeless etc.They will on paper, guarantee the deposit for six months to one year. During/after the year guaranteed, LL have to make arrangements to get the deposit from the Tenants, by way of installments.

Blue Eyes is talking about deposit protection, which applies to Assured Shorthold tenancies in England & Wales. There are three schemes landlords can use: the DPS, TDS, and mydeposits.

His references to LA mean letting agent, not local authority.

You seem to be talking about a different sort of scheme.

westminster
21-02-2010, 12:50 PM
Perhaps, I should ask them under what grounds they think they have the authority to decide where the deposit is held?
Call the TDS and ask. It is quite possible that a condition of the protection is that the money is held in the TDS member's account. TDS have many T&C of both membership and protection.

Remember that is it is not your money, but the tenant's. You will need your tenant's agreement to release the deposit.

Blue Eyes
21-02-2010, 19:53 PM
Call the TDS and ask.

Yes ok I'll do that in the morning; thanks.

Appreciate your efforts, also, cocobean; you really had me confused though, or may be it was me who confused you. I had a lot of difficulty with the abbreviations when I first joined this forum. Maybe there should be a key posted somewhere that can help the uninitiated….. Maybe someone is going to tell me there is?

Just did a search for the word “abbreviations” and there is a short thread on the issue; not official and leaves me more confused :confused:

I will post up what the TDS advise in due course.

Blue Eyes
22-02-2010, 13:48 PM
Just to notify anyone who might be interested. I was advised by the TDS that the LA have no right not to act on my request to transfer the deposit, however, they (the TDS) cannot force them to do so.

I was advised that if they continue to refuse I should make a complaint to the LAs regulatory body.