Pecora Nera

Hi Everyone,

Has anyone used the deposit protection scheme for a house rented in the UK? How did you do it and which company did you use?

I need to protect the deposit but I can't find a scheme for non resident landlords.

Thanks

Pecora Nera

clint

it is a problem if the owner of the property lives abroad as to use one of the authorised deposit scheme owner needs a UK address.

mikelincs

To stay within UK law, a rental deposit MUST be kept in an authorised deposit scheme, which is why many non residents use agencies.

clint

Indeed. There used to be 3 schemes but I think it is now down to 2.

A friend who is currently living abroad and he is now renting out his flat for the first time without an agency rather than asking for a deposit he is asking for 2 months rent in advance with the first rent payment due 1 month after the moving in date so that he has 1 month rent in hand

Margaret M

Isn't that effectively the same thing as a deposit?

mikelincs

Yes, but legally the deposit has to be in an account that is ring fenced, so that, in the event of problems the tenant can be assured they will get their money returned, as long as the apartment/house is left in good order.

clint

you could see it that way but should the tenants trash the place there is no deposit to take it from but if they stop paying rent at least one month is covered strictly speaking you cannot take unpaid rent from deposit paid

Garbatellamike

This is one of the reasons I use an agency

mikelincs

I don't know about other renters, but if the landlord didn't use a deposit scheme then I would NEVER rent from them.

Garbatellamike

Mike, my understanding is that it is now illegal not to use a deposit scheme!

mikelincs

That's true, but there are still unscrupulous landlords that don't.

Garbatellamike

Ah ok got you now, if you were to use such a landlord you would be asking for trouble and your view that NEVER renting from them is the way to go is spot on imho.

nicktonight

I have used this one for 3 years: http://www.depositprotection.com/
and am an Italian resident. I think you have to place the deposit in the scheme within one month of receiving it otherwise you are liable to a fine. Everything works OK though it is a bit complicated