r16chh Posted March 8, 2007 Report Share Posted March 8, 2007 Hi, Can someone explain in simple terms about this scheme, do you have to take part in it or not and how does it work. I currently have one tenant in a property of mine and there deposit in my bank, and another property going through now. How will it effect me. Thanks Richard Link to comment Share on other sites More sharing options...
GPEL Posted March 8, 2007 Report Share Posted March 8, 2007 As from 6 April all newly taken deposits or deposits from renewed agreements will need to be held in 1 of 3 schemes available otherwise your tenant could claim compensation of up to 3 times the deposit amount. Also, if you're not in a scheme you won't be able to use a s21 to possess your property if the tenancy started after 6 April. Apart from the custodial scheme, you pay to join, not the tenant, like it or not. Link to comment Share on other sites More sharing options...
mad_maz Posted March 9, 2007 Report Share Posted March 9, 2007 Hi A really useful website to visit is: www.mydeposits.co.uk It should answer all of your questions. Marion Link to comment Share on other sites More sharing options...
Trenners Posted March 9, 2007 Report Share Posted March 9, 2007 Hi, Another useful site is http://www.depositprotection.com. I am going to use the custodial scheme as it is much cheaper to use than either of the insured schemes. It will cost upto £95 for me to put a deposit into an insured scheme whereas the custodial scheme is free to use. Even the insurance scheme backed by the National Landlords Association charges £58.75 joining fee , £30 per deposit (with a small discount for the first 4 properties of NLA members) and £14.70 annual membership renewal. I know I will lose the interest on the deposit money if I use the custodial scheme but, even at a 5% interest rate, it is only going to cost me £35 per year (before tax) on a £700 deposit. What are other landlords proposing to do? Mark Link to comment Share on other sites More sharing options...
GPEL Posted March 9, 2007 Report Share Posted March 9, 2007 I expect most landlords managing their own properties will be interested in the custodial scheme as it is free and agents will go towards TDS. Besides cost and loss of interest, I'm interested in the track record of these schemes and favour the equivalent to a few quid per month for a scheme that is proven ie TDS. Time will tell the best solution. Gary Link to comment Share on other sites More sharing options...
Trenners Posted March 9, 2007 Report Share Posted March 9, 2007 Hi GPEL, The problem with the TDS solution (specifically aimed at letting agents) is that they really penalise you if you are a non-ARLA member. There are loads and loads of letting agents in the UK that do not belong to ARLA. TDS charge around £512+VAT per annum if you are an ARLA, RICS or NAEA member (per shop) but rises to £1,609+VAT per annum (per shop) if you don't belong to any of those regulatory bodies. I think this is outrageous and should be investigated by the Government. The Government awarded the contract to ARLA who, in turn, then create a pricing structure that seriously penalises non-ARLA members. The TDS is the only scheme aimed at letting agents although they can use the NLA scheme - but the pricing for the NLA scheme has really been geared towards landlords. I do not agree or conclude that a non-ARLA registered agent is a higher insurance risk than an ARLA registered agent. TDS have simply introduced monopolistic pricing. There are loads of honest, non-ARLA, letting agents (like my business) who are unable and/or unwilling to join TDS because of the greed of ARLA. Link to comment Share on other sites More sharing options...
GPEL Posted March 9, 2007 Report Share Posted March 9, 2007 Mark I agree about ARLA, which in my opinion is more about protecting its own interests than others, with a bit of hype thrown in. Now they are in bed with the NAEA I believe this even more so. NALS agents and agents of other approved bodies don't pay the full rate for the TDS insurance scheme and these bodies don't cost anywhere near as much as ARLA to join, yet still provide assurance to clients through meeting the requirements of regulatory bodies. Link to comment Share on other sites More sharing options...
resident Posted March 13, 2007 Report Share Posted March 13, 2007 Great news, landlords can now avoid the cost and hassle of joining a tenancy deposit protection scheme by accepting tenants that belong to the Tenant Guarantee Scheme. This offers better financial protection than a deposit, pre-screened tenants and at absolutely no cost to landlords. For details of this revolutionary new approach go to the schemes official new website www.iguarantee.co.uk. Link to comment Share on other sites More sharing options...
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