It was recently reported that a significant number of Private Landlords are not registering deposits in the various schemes on offer. It is mandatory and carries significant penalties should it be reported.
All deposits should be registered with one of the following:
The insurance product enables landlords or agents to retain the deposit during the tenancy but in return pay a protection fee to the scheme.
The custodial scheme allows landlords or agents to hand over the deposit for protection during the tenancy, with no fees attached. The scheme is funded entirely from the interest earned from the deposit pool.
As an Agent we rely on adjudication should a dispute arise between Tenant and Landlord after the termination of a tenancy. It is invaluable because it is a third party’s view which settles an often heated debate with both parties levelling accusations which can be unfounded.
We recently witnessed an Agents claim that they provide such good Tenants, in one year they gave back 100% of deposits back to Tenants. Obviously that could be true if they dealt with so few Tenancies. However I would have to question whether they are doing the best for their client but the harsh reality is you often face the view of each party which can be tempered with emotion. We try and find an amicable solution to avoid adjudication due to the length it can take for the deposit to be returned.
We have been fortunate that our Clients and Tenants have been amicable and we have had only 3% of tenancies that ended in 2016 that went on to adjudication.