UK Landlord Forum / Life

Hi All,
I own a property that is currently rented futon a 6 month Assured Tenancy Agreement. I did this via a letting agent. They placed the deposit in Mydeposits.
The letting period finishes 31st Dec 2015 and I am certain that the tenants will want to extend, especially as they requested 12/18 months to start with.
I am happy to renew but want to increase the rent slightly which again I do not expect to be an issue (approx 4 or 5%).
The original letting agency is 'chasing' now to request whether I want them to perform the renewal but from reading many good articles on the forum, I think it's money for old rope!

A couple of questions I have that maybe somebody here can shed some light upon:
1) The deposit with the Mydeposit scheme that is registered there for 6 months. Does the landlord give notice to them and have the deposit returned and then back to me for 'onward' placement into another DPS?
2) What are peoples views/experiences regarding the Free Custodial Scheme from DepositProtection.com ?
3) I am also considering simply producing a Memorandum to extend the rental term - again, views/thoughts/opinions?

I have had no problems with the tenants.

Look forward to your views/thoughts

1) Should do, but might be like getting blood from a stone... it's one of their control points (along with the terms of business you signed).
2) It's fine. I use it.
3) Rent increase by mutual agreement is always the best way... your 'memorandum' will have no legal bearing other than being a formal paper trail (but it won't matter a jot if they agree and start paying the revised rent)... if they disagree then you'd be looking at a Section 13 Notice.

Always be wary of advice received from a blog (including my own)
Do your own research.

Hippo is pretty much right.  A couple of other thoughts...
1. The correct process would be for you to register with the deposit protection scheme and then get the agent to transfer the deposit into your account.  But as Hippo indicates be prepared for excuses and delays.  You should contact the scheme administrators to get the best advice on this as well as what they can do if the agent refuses.  In future always get and protect the deposit yourself do not trust agents to do this or to release it to you.

2. Agree with Hippo

3. Formalise the change.  So make it a Contract Amendment or Deed of Variation, (it's just optics) make sure it refers to to the original agreement specifically (date, parties, capitalised terms etc).  It should basically be as formal as the contract itself and they should sign it..  If they fall in arrears/pay late you may need something that will stand up in court.  Although a 4-5% increase isn't really going to make much of a difference and I suppose you could rely on the base agreement.

4. What you should do is wrap up two amendments in one Contract Amendment - (i) rent increase (ii) term extension -- if that's what you really want to do.....
...you do realise if you extend the fixed term then your ability to serve a section 21 is delayed again (until the end of the fixed term) versus just leaving it as a rolling one month periodic tenancy, but maybe the tenant wants more security of tenure?
I know you say the tenants are fine now but things can go wrong...,it's probably ok but just have your eyes open to the ramifications of your actions.

Best of luck.

Nothing wrong with the DPS,  it's free as is the arbitration service. Probably easier to stick with My Deposits though as it may be mentioned in the letting agreement and I would have thought transferring the deposit between agent and landlord is easier if they are both in the same scheme (it is in the DPS anyway).

A simple extension agreement can take care of the increase in rent and extend the term.

Sorry to throw a spanner in the works but as Hippo says have you considered whether the terms of business you signed with the agency actually allow you just to walk away if the same tenant is in situ? Most agencies will not allow this so before you do anything please check what you have agreed to.

Some of the renewals I do are indeed money for old rope but if you get things wrong then it could end up being the most expensive bit of old rope you've ever bought!