Which deposit protection scheme?

by Readers Question

11:01 AM, 28th February 2017
About 2 years ago

Which deposit protection scheme?

Make Text Bigger
Which deposit protection scheme?

I have been using DPS for my deposits until now and find it hard going. Their “prescribed information” is not very clear and I find it hard to negotiate their website. “Tenancy Deposit scheme” seems clearer and I have just signed up to them, although not used them yet.good better

Perhaps other 118 members could share their opinions and experiences on these organisations.

Many thanks

Martin



Comments

JohnCaversham

11:14 AM, 1st March 2017
About 2 years ago

I had the same issues with the DPS so like you changed to the TDS as indeed their website is much easier to use and transferring the deposit over in the first instance is far far more straight forward, plus prescribed info is automatically emailed straight to you for printing off once the deposit details are registered,,,

Gunga Din

11:16 AM, 1st March 2017
About 2 years ago

I agree DPS is clunky, and they revamped it a couple of years ago so just as I thought I knew where everything was, wrong. personally I find the prescribed info template real easy to complete. One irritation is that I have to reduce the Terms and Conditions pages to about 95% before printing, or the edges get trimmed. Not sure whether this is a function of my Mac, as it happens on both printers.

Biggest irritation is how slow they are in dispute processes, their excuse being they have to allow time for tenant to respond blah blah. I'm sure thats true to a certain extent but I'm cynical.

Better the devil I know than the ones I don't so I'll put up with DPS rather than start from the bottom of the learning curve with one of the others.

Mark Lynham

11:26 AM, 1st March 2017
About 2 years ago

I've used DPS from day one and never had any problems... not had any disputes so cant really comment on that part though..

Paul Green

12:22 PM, 1st March 2017
About 2 years ago

Use DPS for years, no problems , no Disputes , have 3 deposits lodged. Easy, not changing, don't need the hassle, I'm sure they will update the site again soon. May be give then some feed back...on monkey survey

DanielLatto

14:54 PM, 1st March 2017
About 2 years ago

I Actually find it easier not to take deposits.

I know it's somewhat controversial but it works for me.

I had a studio that at the time would only get £395 (It's since gone up dramatically to £550 in the last 2 years)

But one of the reasons for the uplift was that people didn't want to fork out £800 for their first month - but didn't mind paying say £495 as it was easier to manage cashflow wise)

In other words, I only had to risk the first 4 months - and then after that - anything on top was pure profit that didnt need to be handed back.

Our average tenancy duration is about 2 years - so thats 24 months at £100 a month extra.

Like I say, it's somewhat controversial, but it totally works. Only been burnt the once (on a decent sized portfolio) but in the long run it's definitely worked for the better.

Best bit is ??? No deposit to fath about with. It's a pain for me and a pain for the tenant.

The properties usually need a clean after wards - but my cleaner is £10 and hour - 8 hours later and it's perfect.

Anything bigger than that then thats what the court system is for.

Dan

Mark Lynham

15:27 PM, 1st March 2017
About 2 years ago

Reply to the comment left by "Daniel Latto" at "01/03/2017 - 14:54":

very good comments Daniel, a route im looking at for my own properties i have to say.

DanielLatto

15:35 PM, 1st March 2017
About 2 years ago

Reply to the comment left by "Mark Lynham" at "01/03/2017 - 15:27":

Cheers Mark - it can be perceived as higher risk of course - so watch out for that.

But imagine say a 5% uplift across the portfolio - well worth it.

Dan
https://daniellatto.co.uk

Darlington Landlord

15:56 PM, 1st March 2017
About 2 years ago

I've used the Insurance option of mydeposits since the begining when it was TDS. Tenants like that I can refund quickly so long as we agree on any deductions and the fact they've paid a deposit encourages them to look after the property and clean thoroughly - although I still often need to get a bit more cleaning done its much less than when they have nothing to lose. I've never had a dispute so can't comment on that but having had a quick look at DPS recently it looked more clunky and the proscribed information less easy to complete. With mydeposits the combination of the deposit certificate, tenancy agreement and their "information for tenants" leaflet provide this. When the tenancy changes to a periodic its free to update the certificate. If you are an NLA member you get a discount on the fee to protect each deposit.

Paul Green

16:33 PM, 1st March 2017
About 2 years ago

Reply to the comment left by "Daniel Latto" at "01/03/2017 - 14:54":

This is just my opinion and I'm not saying your personal mad..but no deposit is utter Madness, taking no deposit at all.. . You can't hire a Ferrari with out a large deposit. And yet you want to give the keys to tenants for free, when the average house price costs £275000. Why it does not make sense. What if they converted it to a cannabis farm. 10k to put right . I think a deposit of £5000 is more like it 6 weeks is already to low. I always take a large deposit as leverage. . Then there's damage, eviction costs, cleaning, skips, void periods, missed rental payments, no rent at all. I take a heft deposit and buy a rent guarantee policy for the first year £125 , until I know them..which pays for 6 months rent, if they stop paying, the time it takes to evict, although have done it in 5 months. Then the locksmiths charge. £90 New carpets if they have turned the place into a brothel.You must be dealing with a different demographic. I just had a void period over the worst time Possible, Christmas. Rented in 19 days bearing in mind 7 days of those were bank holidays and weekends. Took a £1800 deposit on £1250 pcm. Took a £1250 deposit on a £875 pcm. I tell you I would like to see 5 grand deposits on a 400k property. Then theirs those that put up petitions in lounge to create 4 bedrooms, and hammer straight through the floor and ceiling another 5k to fix plus void...my advice is to take as much as possible I'm going for 2 months next time, before anyone gets there hands on my keys to my Bugatti supercar. He's the keys don't crash it, but if you do don't worry just hand me the keys back and I'll fix it for you for nothing, now you move on an find yourself a brand new apartment to trash. If you get the keys back at all. Come on larger deposits to protect our investments and show some financial commitment from the tenants...

Gunga Din

17:58 PM, 1st March 2017
About 2 years ago

Yes, paying a deposit surely focusses the tenant's mind. It also weeds out those with no financial cushion n the first place. And limits the hassle a bit in the event that they leave in arrears, in that via the dispute process, I get the deposit back eventually rather than chasing the absconder for it.

Gunga Din

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Patrick Collinson has got it wrong yet again!

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More