fredthelandlord Posted March 9, 2010 Report Share Posted March 9, 2010 Hello, I'm a newbie here, have been a long time lurker and read with interest the good advice you peeps offer every day however as a landlord myself I could now do with some advice myself so apologies if this has been answered before/the long post. I have a property I let and for the first time have employed a letting agent to find me a tenant (me to manage) which they have now done. I am a member of the deposit protection scheme and will put the deposit in that scheme. The agent is telling me it is illegal for the deposit to be issued directly to me and must go through them. Its not really a problem at the end of the day, they (the agent) will pay it into my DPS account anyway (or that's what they tell me). Frankly I trust letting agents as far as I can throw them and cannot see why they must have the deposit and not me? Is there such a law in place or is the agent trying it on? Regards Freddy Link to comment Share on other sites More sharing options...
Melboy Posted March 9, 2010 Report Share Posted March 9, 2010 There shouldn't be any problem with the LA putting the deposit into a DPS scheme but insist on a copy of the deposit paperwork for your records. Yes, it has happened whereby Landlords were assured of the deposit going into the DPS by the LA and of course it transpires it hasn't and the LA has gone bust and the Landlord, yes, the Landlord has to repay the deposit to the tenant because of the defaulting LA. Recent court case and judgement on that scenario. Mel. Link to comment Share on other sites More sharing options...
fredthelandlord Posted March 9, 2010 Author Report Share Posted March 9, 2010 Ok thanks Mel, I'm just intrigued by the agent saying that by law they must have it initially not me, sounds like cobblers to me! Link to comment Share on other sites More sharing options...
Mortitia Posted March 9, 2010 Report Share Posted March 9, 2010 Yes that is a load of cobblers as you so eloquently put it Freddy. I always use the DPS and like you I sometimes use a letting agent as a tenant finder they always let me place the deposit with the holder. The agent always insists on cash from the tenants or allows a cheque to clear before writing me a cheque for the whole lot minus agent's commission. I place the deposit and advise the tenants how to look at it online. End of story. Something tells me your agent will be wanting to place the deposit because on doing this they are given a reference which has to be given again when the deposit is to be returned. If you do no have this reference then the agent will have to do it for you and charge you for it!! Lovely. So in short do your own deposit placing and keep the reference handy for sometime in the future when you need to get the deposit back. Tell agent he/she is wrong and to go forth etc. They are trying it on. Happy letting, Mortitia Link to comment Share on other sites More sharing options...
fredthelandlord Posted March 9, 2010 Author Report Share Posted March 9, 2010 Ok I'll tell the agent where to go and ask what the legislation is that she quoted me yesterday! I'll report back what the Charlatan's say! thanks so far. Link to comment Share on other sites More sharing options...
fredthelandlord Posted March 9, 2010 Author Report Share Posted March 9, 2010 Just spoken to the agent, apparently yesterday I 'misunderstood', its not a legal requirement afterall (as we knew) it is merely company policy to ensure they get their fee. Thanks again. Link to comment Share on other sites More sharing options...
Lyndon Posted March 10, 2010 Report Share Posted March 10, 2010 Hi Fred They are still talking cobblers! How can them holding the deposit ensure that you pay them? Surely if they have been paid the rent and deposit (as they must have otherwise how could they pay it to the DPS?) then surely they deduct their fees from the rent before transferring it to you? The only stipulation we make is that if we protect the deposit then an independent inventory clerk is use, paid for equally by the landlord and the tenant. Link to comment Share on other sites More sharing options...
Mortitia Posted March 11, 2010 Report Share Posted March 11, 2010 Hi Lyndon and Freddy, Let's be quite clear here of the process when using an agent for new viewers. They deduct their fees/costs from the 1st months rent before sending on any remainder to the landlord/owner. That can take up to a month. Once whilst using a well known London agent I ended up owing them money! That was the last time I used them. The deposit must remain intact to be protected by agent or landlord. Inventory by independent person - is that really necessary? Jobs for the boys and girls who get their work from your agency Lyndon and paid for by the likes of Freddy - until they start questioning things. I'm all for choice and I choose to do my own thing regarding deposits which is what this site is about isn't it? Cheers, Mortitia Link to comment Share on other sites More sharing options...
fredthelandlord Posted March 11, 2010 Author Report Share Posted March 11, 2010 Ok, I have agreed with the agent & the tenant that the tenant pays the agent their tenant finding fee on the day of the move out of the first months rent. All other money will be paid to me directly at the handover meeting with the tenant on the same day. I am doing the signitures for the agreement, inventory and handover, I wouldn't trust an agent to wipe their own ar*e! The deposit will go into my own DPS account. I am just waiting to see written proof that the reference checks have been carried out and what emerges there. Link to comment Share on other sites More sharing options...
Lyndon Posted March 12, 2010 Report Share Posted March 12, 2010 Mortitia It should not take a month to transfer the balance to your account. One week at the most in my experience. Yes, an independent inventory is really necessary when relying on the inventory in the event of a dispute at the end of the tenancy. As for paid for by the likes of Freddy, well having read his comment about agents, I would not want "the likes of Freddy" as a client! If you read my post you will find that the landlord AND the tenant share the cost of an independent inventory clerk equally. It is illegal to charge a tenant the cost of deposit protection but they can and should be charged for an independent inventory. My final words go to Fredthelandlord who, on his own admission does not like agents. Well, just think of Karma Fred. What goes around comes around. Link to comment Share on other sites More sharing options...
fredthelandlord Posted March 12, 2010 Author Report Share Posted March 12, 2010 Well having rented and bought houses/flats for many years before even becoming a landlord not to mention knowing several landlords with various experiences (usually bad) of agents I speak with some experience. In my 21 years of renting and buying I have had one decent landlord, that's right, one! Maybe you could explain why my agent told me it was illegal for me to take the deposit directly off the tenant and then when challenged I was informed I had 'misunderstood'? Karma does indeed go around, what a pleasure it has been to see many an estate agent going out of business in the recession. Link to comment Share on other sites More sharing options...
Chestnut Posted March 13, 2010 Report Share Posted March 13, 2010 Please would us go-it-alone landlords, like Freddie, beware of blaming agents like Lyndon, who as far as I know are equally entitled to use this forum, for the faults of the 'bad' ones! Given some of the comments, agents are bound to be defensive - it's their living. I find advice from a good 'professional' (and Lyndon's is back up this thread) is just as useful as that from an experienced d-i-y landlord - and we don't have to take it! Link to comment Share on other sites More sharing options...
Lyndon Posted March 13, 2010 Report Share Posted March 13, 2010 Thank you Chestnut. I am on this forum in dual capacity as a landlord and as a letting agent . I have never pretended to know everything and I too occasionally need advice in both roles! However I did find it personally offensive to read that quote above from Fred. It would be similar to a tenant saying the same about all landlords. Is it any wonder now that this government want a register of all landlords and a website where tenants can post UNREGULATED comments? Perhaps our agency is unusual but I treat all properties as if they were one of mine. Where there is any doubt about a prospective tenant I ask myself if I would be happy to rent one of my flats to them. If the answer is no, then that is my recommendation to our client landlord. I accept that there are agencies who treat landlord with little or no respect. We have a mix of UK and non-resident landlords and they vary from a FREE tenant find service through to full management and even that ranges from landlords who want to do their own repairs to those who just want a statement every month leaving everything else in our capable (yes, Fred, CAPABLE ) hands! Properties, landlords, tenants and agents are all different and should be treated as such. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.