Control of deposits can stay with the landlord
Published: 29-May-2008
This article was brought to you by Rentman the premium property management system
Buy-to-let landlords do not have to lose control of their deposits, but they must protect them throughout the entire length of the tenancy, investors in the private rented sector have been adviced.
According to mydeposits.co.uk, the face of the government-authorised tenancy deposit protection scheme, more than one million deposits have now been protected.
Most of this cash has been placed into bank accounts or retained by letting agents on behalf of the landlords, but the website explained that mydeposits.co.uk is the only scheme specifically designed for landlords, which allows them to hold onto their tenants' deposits.
The scheme, which currently protects over £200 million of deposits, offers a 'pay-as-you-go' format with only modest fees, noted David Salusbury, chairman of mydeposits.co.uk.
"Just because a landlord now has to protect their tenants' deposits, it doesn't mean they have to hand over the cash to a third party," he added, warning that landlords who fail to comply with the tenancy deposit protection legislation face fines of up to three times the deposit amount.
Earlier this month, the Royal Institution of Chartered Surveyors (Rics) published figures for the first quarter of 2008 revealing that new instructions to let property increased dramatically, as property sellers turn to the rental market in order to take advantage of strong tenant demand.
Buy letting agent software that works
