Insured TDS and periodic tenancy?

[scoot2001]

I just spoke with someone over at Tenancy Deposit Solutions (insured scheme) regarding what happens at the end of a standard 6 month AST. Apparently she says that the fee would be payable again every time a new tenancy agreement was signed as 'theoretically' you would give the tenant back their deposit and then re-sign a new tenancy agreement taking a new deposit.

I then asked about letting the 6 month agreement expire and run onto a Periodic Agreement and she reluctantly (and not convincingly) said that in that case you would not have to re-pay the insurance fee but the deposit would still be insured as you had not signed a new agreement.

Can anyone confirm this as I was not convinced the person I spoke with actually fully knew what she was talking about?

Thanks.

[Simon Dewsberry]

Hi Scoot

Very good Q

If we are taking a insurance "policy" then presumably it should be for a "term" now if that term i the duration of the tenants occupation why should we pay again &again & again....................

Also if this term could be 5 6 7 years then and can be covered with"a" payment of £40 ? then clearly to pay every 6 months for 7 years (£560) is nothing short of a rip off as it is the same "sun assured" for the same period ( see me other posts on this subject!)

The next 6 mths is going to be very interesting - i feel !!................

Keep watching..........

Simon