Buy to Let Deposits

[Jim44]

Hi,

I have a couple of Buy to Let deposits which I need to register with a Deposit scheme. I know there are Insurance backed scheme and ones that actual take the deposit and use the interest.

Which is the best scheme?

Thanks

[Dick Dastardly]

I use DPS as it's free and very easy to use. The other one I considered was the one through the National Landlords Association, Mydeposits. That one lets you keep the money but at something like £80 a deposit I thought it not worth it at the time.

[Adam T]

Have you added the cost of the scheme onto your tennants, so that your not out of pocket.

I dont bother with them, can be a right royal pain. I appreciate it is not right, but have to deal with some right st heads.

[Maxf]

Adam T said:

I dont bother with them, can be a right royal pain. I appreciate it is not right, but have to deal with some right st heads.

I appreciate you know what you are doing, but wouldn't it gaul you more if the sthead tenants managed to get 3 x deposit out of you for not paying it into a scheme? That seems worse to me!

[darronwall]

Adam T said:

Have you added the cost of the scheme onto your tennants, so that your not out of pocket.

I dont bother with them, can be a right royal pain. I appreciate it is not right, but have to deal with some right st heads.

+1

[JB996]

I also use the DPS, easy to use + its free. I also thinks it gives prospective tenants more confidence in you as a landlord.

Its all done through the DPS web site.

http://www.depositprotection.com

[Paracetamol]

Is it true that you dont have to use the Scheme if your rents are above £25,000 per year?

[JB996]

Hi Paracetamol,
That's correct if you have a property from which you receive £25k or more in rent you do not have to register that particular property under the deposit protection legislation.

Edited by JB996 on Monday 21st July 13:44

[Jim44]

Thanks, I will contract them and place the deposit with them.

[Adam T]

I only say that as the trouble you would have getting the money back beggers beleif.

I think only half of landlords bother with the schemes, I offer them, but add my personal time for doing the paperwork, telephone calls, and the actual cost of the scheme onto the deposit - and when you are delaing with people with bedsits who cannot scrounge together £100 you are going to struggle to get anymore - 99.999% of them would not take it further if they had a dispute.

Imagine how long it would take to get the deposit back, and whose side the scheme managers would take if the following scenario took place - Room rented £75 week inc bills, £100 deposit - imagine the costs in placing the advert, driving to meet them, showing them round, often picking them up as they have no form of transport - and then they leave deposit and scarper fatre a week - the £100 in the pocket does not start to cover the costs! - Even if they have stayed a week you would be surprised how much mess people can make.

I appreciate the schemes would work on houses etc where the tennats are more the respectable and are infor a 6 month stint etc.

Rant over.

Edited by Adam T on Tuesday 22 July 07:53