Deposits to be Capped

[Richlist]

I don't know if anyone else picked up on the announcement in the Queens Speech that rental deposits are to be capped at 1 month.

Figures show that 40% of deposits taken currently exceed  1 month.

For those that let to high risk tenants or people with pets etc you will be limited to 1 months deposit also.

Looks like we will all have to insist on rent guarantee insurance or home owning guarantor for all tenants.

Another badly thought out plan by the Gov't ?

[Grampa]

Yes I had heard about the idea of it bandied around but didnt think they would stupid enough to implement it. How wrong was I.

 

One way around it is to increase the rent on a say £600 pcm property by 17 quid and take the gamble that the tenant will stay at least 18 months and you have got your extra 50% towards the deposit, anything longer and the landlord is quids in.

So with addition of the rent increases to cover for the tenant fee bad thrown in as well it very much appears the tenant is going to be worst off. 

So as a quick guide (might need a bit more  tweaking) this is the rent increases my tenants will be getting thanks to the government and Shelter.

500 - 520

600 - 625

650 -675

700 - 727

750 - 780

800 - 830

850 - 880

900 - 935

950 - 985

1000 - 1035

 

 

 

[Richlist]

Cobblers ?....... I know a good one. Looking at your shoe I'd say paying a visit sooner rather than later would be advisable.

[Carryon Regardless]

Aside from insurance backed schemes we don't hold the deposit anyway.

Then trying to claim the deposit from an awkward T who defends the claim isn't really worth the effort, as in most LL / T litigation's the T will have the an advantage come time for 'whoever' to decide who gets what, or in the LL's case not.

I am surprised that the Gov't are cutting their revenues from the holding of deposits some, and I've always seen the deposit schemes as an unnecessary Gov't scam anyway. Why a T shouldn't use the court system like any other faltered business transaction escapes me.

The home owning G'tor has been my favoured method for a while. I only take a deposit when all my checks and intuition is good but the G'tor isn't a home owner. Another little gem I've developed is when an existing T isn't playing nicely I increase their rents significantly, at least while T's they are paying towards the expected hassles of later.

I am surprised you guys haven't cottoned on to the fact that we don't run our own rental businesses these days, We are pretty well social LL's acting on behalf of the Gov't who can't afford to increase their housing stock as is desperately needed, That can have other advantages for us with the principles of supply and demand, but the ongoing and incoming Gov't's will continue to increase the controls over us.

I'm waiting for some git up there in the Westminster ivory tower to suggest we should provide 10% of our rentals to the really needy, like ex cons and single mummies.

I'm sure we've seen this great idea for the poor abused T's   http://www.independent.co.uk/news/uk/politics/extend-right-to-buy-to-the-tenants-of-private-landlords-labours-jeremy-corbyn-says-10342824.html