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DEPOSIT HOLDING SERVICE

Possibly one of the most contentious issues regarding rental property is the deposit and who holds the money and is there interest payable on the amount being held and to whom should such interest be paid.

So many landlords look upon the tenants deposit as a good excuse to buy a new wardrobe or put it towards the next holiday abroad etc.

This can not be done.  The deposit is given to a landlord as a bond against either non payment of rent or to cover the costs of any breakages etc that are put down to being the tenants fault by an inventory clerk.  The money is still the tenants and can not be considered otherwise.  Misuse of a deposit without the permission of the tenant (make sure it is in writing) can be construed as not only theft by also gaining monies by deceptive means.

As a landlord, you have a responsibility with regard to holding a deposit for a tenant.

Our advice is that you agree that yourself or your agent hold the deposit as stakeholder.  This means that no monies can be deducted from the deposit without the written agreement of both parties.  if agreement can not be reached, then the case goes to a board of arbitrators.  I must admit that I have never known this happen in all the years I have been in lettings.  This is mainly because the arbitrators can decide who should pay for the costs.  For another article on deposits please click here

We do offer a deposit holding service and we hold the deposit as stakeholder, therefore we do not release the deposit until both parties have agreed on the amount to be returned to the tenant in writing to us.  There is no charge for this service, but I hasten to add, no interest is paid to either party.  For more details, please e-mail us at admin@do-it.org.uk and quote your registration number and we will send you our terms and conditions.

 

 
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