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Tenancy Deposit Scheme

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Author Topic: Tenancy Deposit Scheme  (Read 110 times)
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« on: August 16, 2021, 11:32:52 PM »

Can someone tell me the go to website to sort this tenancy deposit scheme as I'm a new landlord renting without a lettings agency.  I s there various companies that do this? which is the best?  uk only please.
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« Reply #1 on: August 16, 2021, 11:34:04 PM »

What kind of Deposit are you looking to initiate - Custodial or Insured?
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« Reply #2 on: August 16, 2021, 11:41:21 PM »

Hi thanks for the reply.  Custodial or Insured which would be recommended?  What is a NRLA member as a website has stated.  I think custodial may suit as less admin at end of tenancy.  Is tenancydepositscheme.com legit and widely used or not?
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« Reply #3 on: August 17, 2021, 12:06:52 AM »

Is tenancydepositscheme.com legit and widely used or not?

Yes, it's one of the three approved schemes: https://www.gov.uk/tenancy-deposit-protection

I'd always go for custodial as it's harder to cock up.
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« Reply #4 on: August 17, 2021, 12:20:35 AM »

Thanks for this advice. I will follow your advice- extremely helpful thanks
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« Reply #5 on: August 17, 2021, 08:58:34 AM »

I'd always go for custodial as it's harder to cock up.

I'm curious - why do you think that?

I've done both in my time... and I effectively switched from Custodial to Insured as time went on because I realised the admin. burden is no different... with Insured I just pay a one-off fee, rather than doing a much larger transfer... at the end of the tenancy (which I now encourage - actively - to be longer tenancies, hence an extra advantage of Insured to me) I retain a position of control over the actual funds (not so I can do anything nefarious with it - I suppose it just helps me believe I can't have the rug pulled out from under my feet in some kind of fait accompli - the risk of which is hardly something to worry about).

In the beginning I was firmly in the Custodial camp. I assumed I'd learned with experience...  ;)
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« Reply #6 on: August 17, 2021, 09:41:56 AM »

The "initial conditions" for custodial schemes are generally much more simple than the insured versions. It basically amounts to "give us the money". The insured schemes also only tends to cover only one fixed term per payment, and requires active action to confirm if and when a tenancy goes statutory periodic to maintain cover. Since it only covers a single fixed term and any associated SPT, if there's any new fixed term the landlord would be required to serve the prescribed information again since deemed compliance wouldn't apply unlike in custodial cases.
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« Reply #7 on: August 17, 2021, 10:10:17 AM »

I see. So for me it's much of the same... because I always (by that I mean I've never yet failed to persuade a Tenant it's not the best idea) move to SPT... I get a reminder in plenty of time, I login, tick a box and then I'm done until that tenancy ends.

So this might be useful to the OP... as it's something I've grown to appreciate over the years... strive to find long-term Tenants, nothing is ever guaranteed, but you'll do yourself a favour if you can weed out the ones who'll be there for the minimum. Remember the average tenancy length in the UK is around 18 months. Everyone (including Government) say they want longer... or longer as an option as a default. I make it a part of my viewing process to be asking people what their plans are... if they're renting a new build home from me and have aspirations to save up a deposit to buy something just like that, then I favour them less than a family who says they're fully intending to stay long-term.

The thing is - the Tenants don't really know what you want... 'cos every Landlord will actually be different... so they need to be honest and open - but changing Tenants is a hassle I've learned I don't want any more. This is why I put up with some Tenants who can be a little troublesome... over the years... that's the key - over the years. I've had tenancies running since 2013, 2014 and 2016. Changing Tenants costs.

Hardly related to your specific question... but food for thought.
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« Reply #8 on: August 17, 2021, 11:00:44 AM »

I'm curious - why do you think that?
...

In the beginning I was firmly in the Custodial camp. I assumed I'd learned with experience...  ;)

Basically what KTC said, only not as eloquent. I should have said I'd always recommend custodial for a new landlord, because it removes the risk of the protection lapsing without you noticing. I wouldn't have thought that was a big risk - they give you plenty of notice - but it does seem to happen from time to time. Once you know what you're doing, it's a different matter.
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« Reply #9 on: August 17, 2021, 12:27:28 PM »

That's true - you're reminded by the scheme in plenty of time to have the discussion with your Tenant and if you then forget to tick a box marked "move to SPT" then, well, you kinda deserve whatever's coming to you because you've not been paying the smallest amount of attention to your business.
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