TDS and deposits held by agent

by Readers Question

16:20 PM, 17th February 2015
About 6 years ago

TDS and deposits held by agent

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TDS and deposits held by agent

This one has gradually crept up on me……. TDS and deposits held by agent

As I now have several properties the value of deposits held by my letting agent is starting to add up to quite a big number.

He does my properties on a finding fee basis although is about to do one on a monthly fee, anyway this aside he uses the TDS model and holds the deposit.

As I understand it in the unlikely event he was to go “tango uniform” I would be liable for the deposits.

On this basis it would be safer for me to hold the deposits, is it reasonable for me to ask for them?

Many thanks.

James Pearce

 


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Comments

Mark Alexander

13:46 PM, 18th February 2015
About 6 years ago

Reply to the comment left by "mark mark" at "18/02/2015 - 13:37":

Please see my comment above regarding Private Prosecution - this is your chance to get even 🙂
.

Rob Crawford

13:52 PM, 18th February 2015
About 6 years ago

With low interest rates I don't feel holding the deposit with an "insured" deposit scheme is that attractive to a letting agent or landlord unless the intent is to use the money to finance their own spend on some sort of project. So the DPS "custody" deposit scheme is the most attractive option and the one that I use. Remember though that the DPS now has an "insured" scheme so if your agent says they use DPS, make sure its the custodial scheme that they use.

Mark Alexander

14:04 PM, 18th February 2015
About 6 years ago

Reply to the comment left by "Rob Crawford" at "18/02/2015 - 13:52":

The biggest downside to the DPS custodial scheme is the time it takes to get the deposit money if the tenant does a midnight flit after running up arrears and/or causing damage.

Once you've experience the palava they create about releasing the money you might think differently about using the insured schemes.

Possession in 9/10ths of the law remember!
.

Rob Crawford

20:44 PM, 18th February 2015
About 6 years ago

Reply to the comment left by "Mark Alexander" at "18/02/2015 - 14:04":

Hi Mark, in actual fact I have experienced this and the process with DPS went quite smoothly and the full deposit was awarded to me in the absence of the tenant within a few weeks. Of course if your paper work is not up to much then there will be issues that slows the process down!

Gary Nock

23:40 PM, 18th February 2015
About 6 years ago

"Insured"schemes are only ever any good if you the landlord holds the deposit. You are responsible for it whatever the scheme. If you let through an agent on a "let only"basis either hold the deposit yourself through an insured scheme in your name or find an agent who uses DPS. Its more bureaucratic if things need deducting and good digital inventories are requiredfor dispute purposes....but you will sleep at night.

james pearce

9:50 AM, 19th February 2015
About 6 years ago

Many thanks for all the responses over the last day or so.
Pretty much confirms my thoughts that I'd lose quite a chunk of cash if the agent went down.
Hopefully opening the conversation will help others thought process too....
Jim.

james pearce

9:29 AM, 21st February 2015
About 6 years ago

thanks for all the comments everyone. Seems to have stimulated a thought provoking discussion as others are also not entirely clear on the situation.
It seems my thoughts were correct.
I am going to sit down and have a chat with my friendly agent next when I get a chance.

Zaher Waljee

9:37 AM, 21st February 2015
About 6 years ago

I notice that Mark did not comment on landlords holding deposits. Is this method correct or are there any problems?
Thank you
Zaher

r01

9:38 AM, 21st February 2015
About 6 years ago

Reply to the comment left by "Mark Alexander" at "18/02/2015 - 11:47":

Thanks Mark I'll certainly do so.

R

Gary Nock

9:56 AM, 21st February 2015
About 6 years ago

Reply to the comment left by "Zaher Waljee" at "21/02/2015 - 09:37":

Zaher there is no problem with a landlord holding a deposit as long as its protected and the prescribed information is correctly served. With insured schemes like MyDeposits you retain the deposit and pay an insurance premium to cover it in the event you do a runner with it. Custodial schemes like the DPS hold the money.

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