Luminous

iTrader: (3)

I thought these new regs stopped you from using a "Tenancy Setup Fee", as it stated that any money that was used like a deposit was also covered by the scheme.

"A tenancy deposit is defined by Section 212(8) of the Housing Act 2004 as being:
‘…any money intended to be held (by the landlord or otherwise) as security for –
a) the performance of any obligations of the tenant; or
b) the discharge of any liability of his;
arising under or in connection with the tenancy’.
This means that any form of money that is taken at the beginning of a tenancy on the understanding that it will be
returned to the tenant at the end of the tenancy needs to be safeguarded, whether it is called a ‘deposit’ or not. The
Act only applies where money, either cash or its associated forms, such as a cheque or a banker’s draft, is passed to
the landlord or his agent from either the tenant or a third party. Third party guarantees or ‘promises to pay’ are not
deposits for the purposes of the Act and therefore may continue to be used. Guarantees offered by local rent deposit
schemes might continue to be offered. However, where a rent deposit scheme provides money by way of a loan of
the deposit and pays such money to the landlord, this money must be protected by a tenancy deposit scheme under
the Act as actual money has passed to the landlord."

salsa-king

best thing to do, its the way I'll go with it....

1. register = £58 (£14 a year after that)
2. go for the insurance based scheme not the custodial 9this you give them deposit to someone else)
3. pay £30 per deposit you take.

this way you you keep the deposit your tenant give you, then you pay the £30 into the insurance scheme.

at the end of the tenancy you give back what you see fit, if they don't agree they then take this up with the TPS peeps.

don't for get you have to notify the tenant withing 14days of the contract being taken out.




5. What is an insurance-based tenancy deposit protection scheme?

An insurance based tenancy deposit scheme is a membership scheme that allows the landlord to continue to hold any deposit they take from a tenant during the period of the tenancy agreement. The landlord will be required to pay a fee to protect any deposits taken from a tenant. If there is a dispute over the return of the deposit at the end of the tenancy, the scheme, supported by an insurance policy, will ensure that the amount to which the tenant is entitled is returned. As necessary, the scheme insurers will recover the disputed amount from the landlord.

The scheme is also required to provide deposit dispute assistance which will be provided free of charge to all parties.

Tenancy Deposit Solutions

Diesel

£88 in charges for one deposit and then an annual £14? Thieves!!! Wish I could co-erce business like that!

Who gets the interest?

Cheers

D

salsa-king

but you don't get taken for three times the deposit you charge by your tenant (you have to pay them) who is sharper than a razor blade cus they know you didn't put them in a scheme!!

Diesel

"They will not apply to Assured Shorthold Tenancies s created before 6 April 2007"

Phew!!!

D

salsa-king

but it will do if you re new that contract at any time, even though they have been with you before that date.

Diesel

So I have till Sept to suss it out