Can you take a deposit by installments?

Reply to the comment left by "Luke P" at "28/06/2015 - 14:05":

I agree Luke, these schemes were set up to stop rouge landlords and i agree there is no place for them, or at the very least penalize those that act in a scrupulous manner.

The Government switched on very quickly that renting will go through the roof with what was happening in the banking sector, in 2007 the law came in about protecting deposits via a third party and in 2007 is when the banking sector started its crash.

I have no problem with doing this, i would sooner not hold deposits as i know then they are safe and always ready to return if a tenant gives notice, its not my money and as such expect to make a profit from it.

What i do want is a transparent and fair scheme that looks after both parties, with both parties taking responsibility for their actions, this we are not getting as Landlords.

I also do not except the advice of its the law, even though there is grey areas, and we as Landlords have to take this and do not risk challenging this in court. If this attitude was adopted by everyone then the Government, and other parties, will constantly chip away at our rights and protection. Just because a law is passed that something will happen via a green paper in government, does not mean it can not be challenged and changed by those it effects.

Look back over history and review all the laws that have been changed by those that have had the courage and conviction to make a stand against something that was not right.

Andy

Reply to the comment left by "Andrew Holmes" at "28/06/2015 - 15:47":

I refer again to my comment that you take the money as the full deposit, register it to stay within the law, and call the shortfall rent.

No difference except in name as far as I can see, but this is only if your gut feeling tells you that they are ok.

No idea why you don't still have 50K in your bank Luke - just use mydeposits and pay approx £20 a time to register it. Slightly negates the pitiful interest rate but at least you are still in control/

Reply to the comment left by "Gilly " at "28/06/2015 - 16:35":

Hi Gilly,

Not sure if taking the shortfall as rent is any better. Why put money into a DPS account that should be in yours from the start, Surely the DPS scheme should be transparent and clear and because it is not funding them does not make it right.

I am sure that because landlords are doing this the scheme roles on as it is collecting its money at the landlords expense.

A tenant being short on their rent is not going to effect them, unless it falls into the two months bracket and a section 18 with mandatory possession being issued and due to be judged.

Making the system work that should be independent and fair is not helping the situation. We as Landlords should not be put into this situation from the start.

Andy.

Reply to the comment left by "Gilly " at "28/06/2015 - 16:35":

Because continuing to hold that money came with terms and hassles I was not willing to accept. Now you need a homeowner guarantor to rent one of my properties.

Getting the money out of a TDS when against tenants who have 'played the system' their whole lives is a real pain. The deposit is finite and I find the schemes just want to negotiate the cost of any works down.

i refer all to my original comment to avoid all this hassle.

Reply to the comment left by "Alan Loughlin" at "28/06/2015 - 17:42":

Hi Alan,

Not sure the advice of just avoiding tenants is going to make the DPS scheme work, it would be nice to hear from someone who has some legal back ground as to where we stand as Landlords regarding part payments of deposits.

Andy

Andrew, I was refering to charging a fee as opposed to taking a deposit, sorry, should have made that clearer.

Re deposits in instalments - using the DPS I recently added a second smaller payment to the first, so it can be done. I believe that the whole amount as stated in the AST needs to be protected within 30 days, not 30 days after the first payment was lodged.

Reply to the comment left by "Alan Loughlin" at "28/06/2015 - 20:35":

Hi Alan, thanks for that, yes perhaps we should charge a fee, we as private landlords supply a vital service to the community, one that i think is sometimes confused with making a profit alone.

The way the deposit schemes is run is based on "as long as it run ok and we make a profit" does not work on occasions. I would like to see much clearer and better managed rules and regulations where tenants have a responsibility for paying for a full deposit before enjoying the protection of the scheme.

Andy

all that work, and risk of penalties and it is just given back mmmm
a fee is in the bank, ours to keep, and no risk of penalty mmmmm