UK Landlord Forum / Life

Hello everyone!

I have been reading about the differences between Insured Tenancy Deposit Schemes and Custodial Tenancy Deposit Schemes here:

https://www.tenancydepositscheme.com/news/blog/ask-tds-who-gets-the-interest-on-the-tenancy-deposit/

Custodial schemes are free because they are paid for by the interest earned on the deposits while they remain in the scheme. By contrast, Insured schemes have to be paid for because the landlord or agent holds the deposit.

I can see only one benefit to paying for an insured scheme. That is, you get to earn interest on the deposit while it's in your bank account. Correct me if I'm wrong, but there is no other benefit, right?

The reason I'm asking is because I am a Landlord and my Letting Agent has just charged me £60 for deposit protection insurance. I don't hold the tenant's deposit; they do. So I can't understand why they are earning the interest on the tenant's deposit, while I am paying for the privilege. Surely they should either use the free custodial scheme, or give me the deposit to hold for the duration of the tenancy, or pay the £60 themselves.... am I missing something here?

Thanks for your advice

Control. Possession is theoretically nine tenths of the law... or 90%. With your situation, however, you don't even have that, never mind the interest. Also - I am unaware of any Scheme that charges £60 for protecting a Deposit, so you're being topped-and-tailed... professional fees, I guess. Why would they pay the £60 themselves, though? They're not a charity. You employed them, after all. Why didn't you read their Terms of Business, at least?