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jghomer
07-03-2007, 12:03 PM
Couple of quick ones regarding our deposit shake-up in April....

1.Will the scheme apply to deposit 'top-ups' for deposits originally taken before 6 April? i.e. I often ask tenants to increase deposit when I increase the rent, so i've always got a months deposit....

2.Are we allowed to pass on the fee for registering the deposit to the tenant?

3.Any recommendations about which scheme to join? I'm thinking of the one that's a joint venture with the NLA & Hamilton insurance (www.mydeposits.co.uk)

Any help/advice greatly appreciated as always.

stephenp
08-03-2007, 10:04 AM
try using a custodial scheme, these are free

Ericthelobster
08-03-2007, 13:37 PM
The fees seem extremely steep given the costs cannot be passed on to the tenant - £30 plus vat per depositIs that definitely the case, then? (If so, suppose there's nothing to stop LLs from all deciding to increase their rents by £2.50 monthly, is there?!)

stephenp
08-03-2007, 13:41 PM
There are 2 options us landlords can take

1) The custodial scheme - no charge but you have to deposit the full deposit into the scheme.

2) The insurance based schemes - costs apply.

Thanks

jeffrey
08-03-2007, 14:12 PM
There are 2 options us landlords can take

1) The custodial scheme - no charge but you have to deposit the full deposit into the scheme.

2) The insurance based schemes - costs apply.

Thanks

...and custodial scheme involves handling fee, doesn't it?

stephenp
08-03-2007, 14:19 PM
No - Completely free, the tenant gets the interest accrued though unless you state otherwise in your AST.

multipropertyguy
08-03-2007, 15:46 PM
The money which is placed into the custodial scheme is held until the end of the tenancy. Once both you and the tenant agree who has what then they transfere it either into tenants BANK account or yours. No cash is repaid even if you take cash from them..

If there's is a dispute, or tenant bunks, one sided objection can claime 100% of deposit back in either case.

stephenp
08-03-2007, 15:48 PM
who mentioned cash

Miffy
09-03-2007, 06:17 AM
No - Completely free, the tenant gets the interest accrued though unless you state otherwise in your AST.

Only a small point, but I understood that no interest was payable to LL or T as it was the deposit interest which "paid" for the scheme's running costs?

tobylaura@btinternet.com
09-03-2007, 23:45 PM
don't be so tight. no u can't pass the cost onto the t. This scheme was set up exactly for people like u. sorry.

attilathelandlord
10-03-2007, 05:30 AM
No tobylaura the scheme was set up because of those landlords who didn't pay back deposits at all, not those who run a proper business and quite rightly worry about costs.

Don't forget, a lot of landlords don't have just one property. What looks like just £30 may be £3000 for some and that will be every year.

We can pass the costs to tenants and will. Rents will rise.

nick..
10-03-2007, 06:35 AM
No tobylaura the scheme was set up because of those landlords who didn't pay back deposits at all, not those who run a proper business and quite rightly worry about costs.

Don't forget, a lot of landlords don't have just one property. What looks like just £30 may be £3000 for some and that will be every year.

We can pass the costs to tenants and will. Rents will rise.

and in a competitive market flooded with properties to rent, those who do so will lose tenants

its market forces that drive rental rates

thesaint
10-03-2007, 09:20 AM
Where are all these flooded rental markets that I keep hearing about?
My council have thousands on their waiting lists and are proactive in not letting people join it.

Paragon
10-03-2007, 09:35 AM
In my area, as soon as one of my properties becomes vacant, I will have six viewings within the first week - all professionals.

nick..
10-03-2007, 10:56 AM
Where are all these flooded rental markets that I keep hearing about?
My council have thousands on their waiting lists and are proactive in not letting people join it.

No idea about council housing, but there's a dozen 2 bed flats within a couple of miles of my place, two identical ones in the same block are up for 850 and 1000 respectively (the latter has been up for 3 months), I wonder which of those will rent first/easiest? the one charging extra to cover their costs?


I will have six viewings within the first week - all professionals.

Just out of interest - what do people class as professionals? it seems nowadays, this is a catch all term for people who wear a shirt and tie to work, aka office workers

I used to think the term professional referred to airline pilots, lawyers, doctors etc etc

Paragon
10-03-2007, 11:25 AM
You're right. Professional is a very vague term these days, and probably doesn't describe what I meant correctly.

Ericthelobster
10-03-2007, 14:16 PM
Just out of interest - what do people class as professionals? it seems nowadays, this is a catch all term for people who wear a shirt and tie to work, aka office workers

I used to think the term professional referred to airline pilots, lawyers, doctors etc etcAs on the passport application form, eh?! I don't it's even that any more... since tradesmen like plumbers and electricians have become in short supply over the past generation, they've definitely sought to up their game and justify their large salaries (which are due to undersupply of the market) by claiming to be professionals too.

thesaint
10-03-2007, 19:53 PM
My point about the council is, if the market was flooded then surely the landlords would have no choice but to rent to the thousands on the waiting lists?
Tenants first choice would usually be the council as their rents are much cheaper than private lets, with the added bonus of security of more than 6 months guaranteed at the property.

nick..
10-03-2007, 22:29 PM
I don't really understand your point, I would probably guess the owners of the empty 1000pcm apartment near me are holding on because they can't afford to accept less, which they'll have to if they want to avoid further voids, therefore the market is driving the cost of the rental, not the landlords costs

And I don't get what you're saying about a tenants first choice being council provided accomodation - unless you are female, with kids and homeless, you're not going to get a council place

I would imagine your average single mum with 3 kids or a refugee would not quite fit the average BTL landlords idea of a nice professional tenant like it shows in the brochure

johnboy
11-03-2007, 17:57 PM
Thats not true about only single mums with kids getting put at top of list for council houses/flats.

I know of 2 single guys who got flats within 18 months cos they went into council offices twice a week every week demanding somewhere to live. In the end the council just got fed up with them and gave them one. All wrong i know

jghomer
12-03-2007, 10:08 AM
Wandered off at some interesting tangents but thanks to all who posted :-)