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tenants deposit


kanrent

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Hi does anyone know of a government backed scheme or a company that is covered by the financial serviced compensation scheme that can protect my tenants deposit using the custodial method, as i'm not using an agent i need to find someone that can do this.

tried looking on the internet but no luck, i'm not sure where to start looking.

I would be grateful of any advice, and procedure for doing this.

thanks

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We use

http://www.depositprotection.com/

Never had any problems, process is quite slick. Never had to make a claim though, so can't comment on that side of things.

Dave

hi dave i think i will go with the one your using, but i'm a bit confussed how to do this, do i apply online then sendmy tenant a form to sighn agreeing to it or do i get him to agree then apply online and what is the information i have to give him with the form? thanks for any advice you can give me

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You have to open an account with them, you then pay the deposit into your personal account. Once it has cleared you then transfer it to the DPS by an online payment, they will ask you for the tenants details and you will both be sent id numbers for repaying / demanding repayment at the end of the the tenancy. You have to supply the tenant with the "prescribed information" which is downloadable from the website.

It is more straightforward than it sounds.

All of this needs to be done as quickly as possible to prevent any future legal issues. I believe the deadline is 14 days from start of tenancy, but I stand to be corrected on this. If you fail to protect the deposit or give the tenant the precribed info, you leave yourself wide open to other issues further down the line. I get the tenant to sign a copy of the PI and keep it on file with the tenancy.

Dave

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You have to open an account with them, you then pay the deposit into your personal account. Once it has cleared you then transfer it to the DPS by an online payment, they will ask you for the tenants details and you will both be sent id numbers for repaying / demanding repayment at the end of the the tenancy. You have to supply the tenant with the "prescribed information" which is downloadable from the website.

It is more straightforward than it sounds.

All of this needs to be done as quickly as possible to prevent any future legal issues. I believe the deadline is 14 days from start of tenancy, but I stand to be corrected on this. If you fail to protect the deposit or give the tenant the precribed info, you leave yourself wide open to other issues further down the line. I get the tenant to sign a copy of the PI and keep it on file with the tenancy.

Dave

thanks for you help, can you tell me are the id numbers be sent to my email address?

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  • 2 weeks later...

Custodial you send the deposit off for them to hold.

Insurance based you pay a small fee to hold the funds in your bank account or under the mattress.

I prefer the insurance based one as I find it easier to release the funds and the DPS are not very helpful for some situations and you can end up with a stalemate where they wont release the funds.

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