How to deal with DPS Deposits when a tenant renews their tenancy

by Readers Question

13:08 PM, 12th June 2014
About 5 years ago

How to deal with DPS Deposits when a tenant renews their tenancy

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How to deal with DPS Deposits when a tenant renews their tenancy

I currently have deposits protected in the DPS custodial scheme. My tenants are due to renew and I am wondering how to deal with their deposits. How to deal with DPS Deposits when a tenant renews their tenancy

There is no easy way in the DPS to just update the start and end tenancy dates without doing a whole resubmission. 

This would mean the tenant has to provide a whole new deposit and then I would refund their old one when their current tenancy lapses.

Does anyone know what is the correct thing to do in these situations?

Can I leave the deposit in place with the current information and just issue a new prescribed information and terms and conditions to the tenant?

Appreciate your comments.

Cheers

Raji



Comments

Lesley Eddy

13:29 PM, 12th June 2014
About 5 years ago

That is what I have done, but I also type something up for them to sign, dated, saying that they have received the T&C's and prescribed info, and that I also confirm that the deposit is protected with the DPS, after of course checking that nothing has gone awry. Assuming that this is the correct procedure, as you can't put the tenants in the position of having to find the deposit again, albeit for a short while.

Industry Observer

14:07 PM, 12th June 2014
About 5 years ago

Hi Raji

Yes not only is DPS the only Scheme needed, it is also the simplest in your situation.

You do not have to do anything at all with a deposit lodged with DPS they consider that once you have satified their initial requirements (no-one ever actually 'protects' a deposit, the Statute does not demand that, itt demands that you meet the initial requirements of the chosen scheme) which I assume you did originally, the deposit remains protected i.e. the DPS initial requirements are met, as long as they hold the deposit.

I believe you can advise them it has gone periodic and the periodic start date, but there is absolutely no need to.

However until Superstrike is reviewed, and I understand it is now highly likely that CLG is looking to amend the original legislation/Localism Act 2011), the Statute demands that the PI is re-issued.

Mark Alexander

14:27 PM, 12th June 2014
About 5 years ago

Reply to the comment left by "Industry Observer " at "12/06/2014 - 14:07":

Raji's circumstances aren't about periodic though, so far as I can tell he's issuing a brand new fixed term tenancy to the same tenants.

I'm a MyDeposits man personally so don't profess to know the intricacies and variances between MyDeposits and the DPS scheme.

Does the issuing of a brand new fixed term tenancy require different advice to that you have provided so far?
.

Industry Observer

14:32 PM, 12th June 2014
About 5 years ago

Mark

Absolutely same advice third para means periodic date or any new renewal date, but you do not have to do anything.

On renewals it has always been the case it is a new tenancy and so whatever is needed by a Scheme to satisfy "initial requireents" must be done again.

In terms of the PI to satisfy the Statute where that is dealt with you must re-serve

Michael Barnes

14:58 PM, 14th June 2014
About 5 years ago

I believe it is necessary to protect the deposit for the new tenancy WHEN that deposit is received. If you do not, then you probably cannot claim any money from the deposit when the tenancy ends (because it in not protected for that tenancy).

Therefore do the following:

A. Agree the following with the tenant, preferably in writing:

1. The deposit will be returned to you in full
2. The tenant will approve this with the DPS when DPS contacts the tenant.

B. Apply to DPS for all the deposit to be returned to you including any interest (none at present, but in the future...)

C. When the deposit has been returned to you:
1. Protect it against the new tenancy WITHIN 30 days.
2. Issue new prescribed information (if not already done).

Michael Barnes

15:01 PM, 14th June 2014
About 5 years ago

I would also suggest that you ask the question of DPS by email (not their 'ask emma' system, and post the definitive response here (if you can get one: in my experience they tend to answer the question they woul like to have been asked, not the question asked!)

Industry Observer

15:21 PM, 14th June 2014
About 5 years ago

No Michael you do not, trust me. Lesley is correct

In any event how do you get the money out of DPS you have to tell them that the tenancy has ended for them to return to either party - but it has not ended.

Watch for revised rules being published this summer, but what will be in those already applies. You never did have to do anything for DPS, not buttons to press, nothing you need to tell them.

That is why DPS is so good for members (as opposed to the other two, have you seen what you have to do for Mydeposits now on a periodic?!!)

Once initial requirements have been satisfied for DPS you do not need to do anything for DPS when it goes periodic, or renews.

You do have to re-serve PI though unless and until Superstrike is sorted out (if it is)


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