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

Zaher Waljee

10:05 AM, 21st February 2015
About 6 years ago

I notice that Mark has not commented on landlords holding deposits.
Mark are there any problems with this method? I believe this is the safest way?
Zaher

r01

10:38 AM, 21st February 2015
About 6 years ago

Reply to the comment left by "Rob Crawford" at "18/02/2015 - 20:44":

Agreed Rob.

I find the custodial scheme excellent and it saves so much to-ing and fro-ing with the tenant once they leave. Using the scheme keeps that distance and the words "...well, if you are not prepared to compromise and accept the deductions I require, your remaining money could end up locked away for months or even years as it's the DPS that holds your money - not me...." usually brings them to a swift compromise.

A comprehensive inventory backed up with a full set of photos has won every situation for me and always very quickly, whereas I often used to cede ground when dealing direct just to get tenants off my back.

Of course, you do not have to use the resolution service and can always opt for court action instead which you would probably want to do anyway in the case of a large amount of arrears or damage for which most deposits are woefully inadequate.

R

Mark Alexander

11:04 AM, 21st February 2015
About 6 years ago

Reply to the comment left by "Gary Nock" at "21/02/2015 - 09:56":

Gary, I concur. No problem legally with the landlord holding the deposits. Letting Agent may churlishly refuse to do business on that basis though and I have seen examples of this. The reason proffered by the agent is that they have previously been compromised in a dispute whereby they felt the landlord should refund the deposit to the tenants but the landlord thought otherwise. The agent then becomes conflicted when the case goes to arbitration because technically he is the agent for the landlord, not the tenant
.

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