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View Full Version : If you're not taking deposits, what are you doing?



jai
04-05-2007, 12:34 PM
Hi All,

I have seen some posters saying that they have stopped taking deposits as a result of the DPS. I too am toying with this idea, but I would like to know how LL's intend to have some security for the contents. My properties are fully furnished so this is more of an issue for me but if you don't take deposits, what do you do?

Regards

Jai

Paragon
04-05-2007, 13:32 PM
Intensive background checks. Copies of passports and drivers licenses, at a minimum. Will certainly verify that any letters of recommendation and referencing comes from whom it says it is from.

jai
04-05-2007, 15:11 PM
Yeah, I do that anyway as my standard procedure. So do you just not take deposits and charge the tenant for any damage, clean up costs etc. What if they dont pay?

jeffrey
04-05-2007, 15:17 PM
Remember that the DPS nonsense covers only AST lettings. On all others, deposit procedures are unaffected.

jghomer
04-05-2007, 15:19 PM
There's nothing to lose by taking a deposit and lodging it in the custodial scheme. I've just done my first one. I don't like this DPS thing, but it seems better that the tenant at least knows they are POTENTIALLY out of pocket if there are any chargeable problems, as opposed to taking nothing and them having nothing to worry about? I'm not looking forward to my first battle with the DPS/tenants though!

Paragon
04-05-2007, 18:05 PM
There's nothing to lose by taking a deposit and lodging it in the custodial scheme. I've just done my first one. I don't like this DPS thing, but it seems better that the tenant at least knows they are POTENTIALLY out of pocket if there are any chargeable problems, as opposed to taking nothing and them having nothing to worry about? I'm not looking forward to my first battle with the DPS/tenants though!


Good post. Just wondering aloud: If the potential damage is more than the deposit and you make sure that your request for reimbursement is more than the deposit, will this insure that you can still go to court, no matter what the DPS decision? Over to you Jeffrey>

Miffy
05-05-2007, 06:41 AM
There's nothing to lose by taking a deposit and lodging it in the custodial scheme. I've just done my first one. I don't like this DPS thing, but it seems better that the tenant at least knows they are POTENTIALLY out of pocket if there are any chargeable problems, as opposed to taking nothing and them having nothing to worry about? I'm not looking forward to my first battle with the DPS/tenants though!
That's my view of things too-even if there were little prospect of getting my hands on deposit, the tenant can't be absolutely sure of that! Also, I am not looking forward to the hassle involved if the tenant cannot be contacted-making witnessed statutory declaration or whatever it is....


Good post. Just wondering aloud: If the potential damage is more than the deposit and you make sure that your request for reimbursement is more than the deposit, will this insure that you can still go to court, no matter what the DPS decision? Over to you Jeffrey>
The DPS states that the ADR cannot be used if the amount in dispute is more than the deposit. Also, remember that you can opt to go to court instead of using the ADR anyway. (I am thinking that this may be a bargaining tool to persuade an agreement from tenants who otherwise might have nothing to lose from going to ADR for the hell of it. "Well Mr x, if you really want to dispute the damage you have done, I might as well take you to court and apply for costs as well. How do you like them apples?"