Jump to content

Urgent Help - tenancy deposit scheme options


Recommended Posts

Hi all,

 

First time self managing a property and dawned on me I need to arrange a tenancy deposit scheme!!  So people just use the free one where they hold

your deposit or do you pay for the insure and hold it yourself?

 

thanks 

Link to post

Hi there

When it comes to tenancy deposit schemes, you need to make sure that you're protecting the deposit correctly and giving your tenant(s) the information required by law. Avoiding either of these could lead to you being fined more than three times the value of the deposit taken.

In terms of options, there's three approved deposit schemes and you need to register your deposit with them within 30 days of receiving it;

All three of the services offer an insurance-backed scheme, which means that you don’t have to physically pay the deposit over to them – you just make them aware of the deposit’s existence and keep it in your own bank account for the duration of the tenancy. The DPS and mydeposits also offer a custodial scheme, where you actually transfer the deposit into their bank account.

Whichever you choose, follow the guidance on the scheme's website to find out what you're meant to do!

Rob D covers this over on PropertyGeek, I'd recommend giving this a read as well just so you've got all your bases covered before you decide which one to go with; https://www.propertygeek.net/article/tenancy-agreement/

Mark Rocks
Community Builder and Content Writer

www.propertyhub.net

01_original.png

 

Link to post
On 1/6/2021 at 12:04 PM, Mark Rocks said:

Hi there

When it comes to tenancy deposit schemes, you need to make sure that you're protecting the deposit correctly and giving your tenant(s) the information required by law. Avoiding either of these could lead to you being fined more than three times the value of the deposit taken.

In terms of options, there's three approved deposit schemes and you need to register your deposit with them within 30 days of receiving it;

All three of the services offer an insurance-backed scheme, which means that you don’t have to physically pay the deposit over to them – you just make them aware of the deposit’s existence and keep it in your own bank account for the duration of the tenancy. The DPS and mydeposits also offer a custodial scheme, where you actually transfer the deposit into their bank account.

Whichever you choose, follow the guidance on the scheme's website to find out what you're meant to do!

Rob D covers this over on PropertyGeek, I'd recommend giving this a read as well just so you've got all your bases covered before you decide which one to go with; https://www.propertygeek.net/article/tenancy-agreement/

Great thanks for this!

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...