Monchichi Posted June 1, 2011 Report Share Posted June 1, 2011 Hello landlords, I'm a new to this forum and am a first time landlord-to-be. I brought a property (but not yet completed) that comes with a tenancy where the deposit is currently registered with TDS by the previous landlord. I was told that TDS mainly deals with agents or professional bodies, so it seems to me that my other option is to register with Mydeposits or DPS. First off, does anyone know who I should contact to get the deposit, TDS or the previous landlord? As far as I know, TDS doesn't really hold the money, but provide an insurance cover for the deposit. So, I'm confused about who I should talk to, and how the procedure will be like? Anyone can help me out here? In terms of efficiency of the operation of the schemes, which scheme would you recommend me to go for? Mydeposits or DPS? Thanks! Link to comment Share on other sites More sharing options...
Mortitia Posted June 1, 2011 Report Share Posted June 1, 2011 If you are using a solicitor to purchase then he should be sorting this for you as you are not buying with vacant posession and certain precautions must be taken. Ask your legal person what he is doing to transfer the tenancy. I have always used the DPS with no ill effects, do it online and I find them easy to deal with. I don't tend to have deposit problems - though I may have one coming up. The TDS has strict entry requirements and you may not qualify for that one. Mortitia Link to comment Share on other sites More sharing options...
Grampa Posted June 1, 2011 Report Share Posted June 1, 2011 The TDS is normally used by agents and one of the requirements is to be a member of ARLA, Nals or the law society. (Also TDS members hold the deposits in a client account) Most private landlords use the DPS which is free but you have to send the deposit off to them. The easiest way for a deposit to be changed over is if both parties belong to the DPS which has the ability on the site to swop the deposit from one landlord to another (no money changes hands) as long as you have the membership number of the other party. A lot of agents even though they use the TPS may also have an account with the DPS for this purpose. I suggest you open an account with the DPS which you will have to do anyway www.depositprotection.com then speak to the agent about transferring the deposit into your DPS account. I dont know if the solicitor will change the deposit over and do it correctly as most run of the mill conveyancing solicitors know bugger all about housing law. BUT TO FOLLOW THE LETTER OF THE LAW THIS ALSO NEEDS TO BE DONE A landlord or agent who wants to remove protection from the TDS scheme must serve a notice under paragraph 5(1A) of Schedule 10 of the Housing Act 2004 on the scheme administrator stating that he no longer wishes to retain the deposit under that scheme. Link to comment Share on other sites More sharing options...
Monchichi Posted June 1, 2011 Author Report Share Posted June 1, 2011 Thank you both, Mortitia and Grampa, for the direction. I'll certainly register DPS to start with. I don't have a letting agent, or I should say I haven't thought about hiring one because this is the first BTL I have and there is a tenant already. I thought I could learn more about BLT in a practical level by managing it myself (although I know the money I can save from not hiring an agent may not sufficient to cover the cost for any potential mistake a newborn landlord can easily make.) However, as we are on this topic, can you tell me in your opinion if I'll have a better chance to sort out the deposit issue if I hire a letting agent? As I have pretty experience with my solicitor previously and I was quite happy with her performance in terms of chasing the vendor's solicitor for information. What I don't know is whether the transfer of deposit is usually within the solicitor's power (or responisibility) on a property purchase. May I ask for more opinion here? I appreciate your advise. Thank you all. The TDS is normally used by agents and one of the requirements is to be a member of ARLA, Nals or the law society. (Also TDS members hold the deposits in a client account) Most private landlords use the DPS which is free but you have to send the deposit off to them. The easiest way for a deposit to be changed over is if both parties belong to the DPS which has the ability on the site to swop the deposit from one landlord to another (no money changes hands) as long as you have the membership number of the other party. A lot of agents even though they use the TPS may also have an account with the DPS for this purpose. I suggest you open an account with the DPS which you will have to do anyway www.depositprotection.com then speak to the agent about transferring the deposit into your DPS account. I dont know if the solicitor will change the deposit over and do it correctly as most run of the mill conveyancing solicitors know bugger all about housing law. BUT TO FOLLOW THE LETTER OF THE LAW THIS ALSO NEEDS TO BE DONE A landlord or agent who wants to remove protection from the TDS scheme must serve a notice under paragraph 5(1A) of Schedule 10 of the Housing Act 2004 on the scheme administrator stating that he no longer wishes to retain the deposit under that scheme. Link to comment Share on other sites More sharing options...
Grampa Posted June 1, 2011 Report Share Posted June 1, 2011 I am sure your solicitor will say they will do it for you as you will be paying for the privilege. Link to comment Share on other sites More sharing options...
Mortitia Posted June 2, 2011 Report Share Posted June 2, 2011 Monchichi, Since you are new to BTL I would get as much done on this purchase/tenant transfer by the solicitor and don't be afraid to ask questions. If taking on tenant ask to see the AST (are you 100% sure there is one) and find out about tenant - could be tenant from hell for all you know. I have seen before where newbie buys property with tenant only to find that there is no AST and tenant is a permanent fixture until death or he decides to move out. Advise extreme caution, personal research and vigilance. Mortitia Link to comment Share on other sites More sharing options...
Melboy Posted June 2, 2011 Report Share Posted June 2, 2011 Good advice from Mortitia Monchichi The last sentence should be your watchword in these buying proceedings. Mel. Link to comment Share on other sites More sharing options...
Grampa Posted June 2, 2011 Report Share Posted June 2, 2011 I what have though it would/should be standard practice for a solicitor to check on the tenancy type when dealing with a house sale with a tenant in occupation. I wouldn't be surprised if some didn't after picking up the mess a few times after a conveyancing solicitor has played at being a housing law expert. Link to comment Share on other sites More sharing options...
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