Charges for tenancy deposit scheme

[F-Prop]

Hi All,

Just going though this new tenancy deposit scheme due to hit us in April and wondering what I'm supposed to do. Yet more costs and rules we have to abide by

Anyway I read with interest from the NLA who are running a scheme, that the costs to hold the deposits may be passed onto the tenants. I'm sure this contridicted what I read some months ago.

So what's everyone planning?? Can we charge an administration fee to the tenants when taking the bond?

Also has anyone got any idea how much all this is going to cost? I'm awaiting some more information but I've jet to see any prices.

Many thanks,

Trevor.

[Melboy]

Why should a Landlord have to pay any fee to any organisation on a security bond amounting to £100's when the Landlord has no control or access to that money and the LA or Organisation is earning interest of 6% on the money deposited?

Has someone left the Asylum door open?

Mel.

[GPEL]

Costs and who pays them or options for offsetting will all depend on whether its a custodial or insurance based scheme that you've signed up to.

Under custodial schemes, the deposit is held by the custodial company, not the LA or landlord and there is no charge to the landlord. The custodial company generates revenue from the interest, part of which may even be re-paid to the tenant and possibly the landlord/agent.

Go to www.nalscheme.co.uk/dps/dps_news.pdf for more guidance

LA client money (inc deposits) should currently be kept in a client current account and needs to be instantly accessible. You won't find any of these accounts offering interest at 6% to the agent/landlord.

[robwalsh25@tiscali.co.uk]

Check out www.mydeposits.co.uk it explains all.