Tenancy Deposits and Inventories by David Lawrenson of Letting Focus

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Mydeposits.co.uk, celebrating its second birthday a while back, revealed that a massive nine out of ten tenants get their money back in tenancy deposit dispute cases. And as the average amount in dispute in tenancy deposit cases was £733, that’s quite a lot on money being lost by landlords.
I’ll bet that the vast majority of those landlords did not have a professional inventory drawn up.
The best way to make sure that you aren’t one of those landlords is to have a proper professional inventory done and to “manage the end of tenancy” in a professional way.
And that’s important because in disputes about the return of deposits the only thing the adjudicators will use will be the inventory document.
If there is no inventory at all, the tenant will always win and if the inventory lacked sufficient detail the tenant will probably win too.
So let’s look at inventories in more detail.

Property Inventories Are Not All The Same
Of course, there are inventories and inventories.
Now, I’ve seen some duff property inventories in my time and some really detailed ones too.
Often the duff ones are done by letting agents using untrained people who have no idea how to do a proper inventory - so if you are using a letting agent ask to see proof of a previous inventory to check quality and level of detail. .
A good inventory should be done at both the start and end of the tenancy (ideally done by the same independent third party) and it should list the state and condition of everything in the property and the make and model number of each and every appliance. Every chip, mark and scratch should be noted on the inventory. Anything that is not clean should be noted too.
With a clear inventory there can be no room for dispute - either the tenant damaged something, or he didn’t or it was down to fair wear and tear. Simple!
A good professional inventory on a 2 bed property can be done for less than £100.

Managing the End of a Tenancy
“Managing the end of tenancy” means that in the last month of the tenancy you as the landlord or your agent should visit the property and make sure the tenant understands that they must leave the property in the same condition they found it (fair wear and tear accepted) or face the cost of putting it right.
At the same time, it is good practice to remind them of the state and condition and degree of cleanliness when the tenancy started so that they can make sure it is like that when the check out inventory is done too.
It is better you give them a reminder to clean up and they can put it right before the tenancy ends than end up in a nasty dispute because even if you win, disputes are time consuming.

Offer
This week we have a special offer from Nick Lyons of leading inventory managers Nolettinggo (http://www.nolettinggo.co.uk/) exclusively for LettingFocus.com customers.
If you book an inventory or check in with them up to 15th December 2009 and quote LettingFocus they will carry out a mid term inspection on the same property free of charge. This offer is not available on line – please call 0845 659 9980 and quote LettingFocus.

To find details of our NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors on 4th November click here:
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ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the property experts.
I’m, David Lawrenson, the author of “Successful Property Letting” which for the last 3 years has been the UK’s top selling property book.
What’s unique about LettingFocus is that I offer independent unbiased
property seminars covering property investment and letting because unlike most people in the buy to let and property “advice” business I am not linked to a property company, developer, agent or bridging loan financier.
I can tell you where to buy (which areas), what type of property to buy, when to buy, how to buy property at a low price, how to make sure you get tenants who are going to pay the rent and how to manage a rental property to make money.
I can also comment on “No Money Down” Schemes and “Buying Below Market Value” methods too.
I can answer all your questions on letting property because I have been a landlord and property investor for over 25 years.

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Tenancy Deposit Schemes and Tenants Bonds by Lawrenson of LettingFocus.com

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Tenancy deposit protection schemes are given bad press by the world at large but mainly because of a lack of understanding.
For me, the benefits of tenancy deposit schemes seem to far outweigh the cons.
1.) The custodial scheme is free to both landlord and tenant.
2.) Insurance based schemes are cheap if the landlord wants to hold onto the deposit – at a one off charge £30 per tenancy agreement with no additional to pay if the tenancy agreement lapses into a statutory periodic.
3.) Adjudication is quick, simple and effective. It is also flexible with no requirement for inventories – although the more evidence supplied the better. The majority of claims/disputes are settled within 6 weeks.
4.) The landlord continues with the deposit process as before - thus provides buy-in for the tenant.
5.) No restriction on tenant types.
6.) It is backed up by law!
7.) No intervention by a third party if the landlord/tenant sort out their issues between themselves – if an insurance based tenancy deposit scheme like MyDeposits is chosen.

Insurance Bonds
These days you will see quite a lot of promotion of what are called "insurance bonds".
In essence these bond schemes - which are always linked to rent guarantee insurance products - do away with the need for a deposit but there are some big downsides.
The biggest drawbacks are
1.) If you get into a dispute with the tenant over damage it is the insurance company that steps in to sort it out - and often they are not good at doing this.
2.) Should you really let a property where no deposit is taken anyway? If the tenant cannot afford a deposit, the risk of non payment of rent and damage to the property will be greater.
3.) Most times people on Housing Benefit / Local Housing Allowances and other groups like students are not covered by insurance bonds as the insurance companies deem them to be too risky.
Eddie Hooker of MyDeposits, a tenancy deposit scheme says, "I think like all products, tenant bonds (linked to rent guarantee insurance products) have their place in the market especially for landlords trying to attract tenants who struggle to find the deposit – although I would question whether you want to let your property to a tenant who cannot afford to move in. "
I agree.
Landlords as always, need to read the small print but using a registered tenants deposit scheme is not difficult, restrictive or cumbersome.
We like the MyDeposits scheme best. http://www.mydeposits.co.uk/

Inventory Offer
To avoid disputes over deposits in the first place it is essential to have a proper professional inventory check done.
We will look at this in much more detail in next weeks' blog.
But this week we have a special offer from Nick Lyons of leading inventory managers Nolettinggo (http://www.nolettinggo.co.uk/) exclusively for LettingFocus.com customers.
If you book an inventory or check in with them up to 15th December 2009 and quote LettingFocus they will carry out a mid term inspection on the same property free of charge. This offer is not available on line – please call 0845 659 9980 and quote LettingFocus.

ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the property experts.
I’m, David Lawrenson, the author of “Successful Property Letting” which for the last 3 years has been the UK’s top selling property book.
What’s unique about LettingFocus is that I offer independent unbiased
property seminars covering property investment and letting because unlike most people in the buy to let and property “advice” business I am not linked to a property company, developer, agent or bridging loan financier.
I can tell you where to buy (which areas), what type of property to buy, when to buy, how to buy property at a low price, how to make sure you get tenants who are going to pay the rent and how to manage a rental property to make £s at my one to one consulting service.
I can also comment on “No Money Down” Schemes and “Buying Below Market Value” methods too.
I can answer all your questions on letting property too because I have been a landlord and property investor for over 25 years.
LINKS
Find out about GREAT DEALS we have arranged for landlords by clicking here: Property Investors’ Affiliate and seeing our Affiliates page.
More products will be added over the coming months. If you are a merchant with national coverage, get in touch!
For SEMINARS, click here: Property Seminars, Networking Evenings and Consulting
For the NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here:
Next Seminar Event
For ONE TO ONE CONSULTANCY help click here: Private One to One Consulting
To BUY THE BOOK click here: Buy the Book at Amazon
For THE HOME PAGE OF THIS BLOG click here: Blog
For THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
For GREAT OFFERS on Products for Landlords, click here: Landlords Resources
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
Copyright of Blog: David Lawrenson 2009.
This blog is updated roughly once a week usually on a Monday or Tuesday.
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ARE YOUR TENANCY DEPOSITS SAFE FROM ROGUE LETTING AGENTS ASKS DAVID LAWRENSON OF LETTING FOCUS

My last newsletter, which covered how Accidental Landlords are being ripped off by letting agents, generated quite a lot of interest from the press.
So I thought I would highlight another letting agency man trap which is just waiting for the new landlords to fall into.

If you use a letting agent and that agent handles the tenancy deposit for you, you ought to think carefully about what happens to that money.
All deposits taken under an assured shorthold tenancy which started on or after 6th April 2007 in England and Wales must now be protected in one of the various tenancy deposit schemes. For more on this read our article on Tenancy Deposit Schemes
If you use an agent, bear in mind that it is you, the landlord who is ultimately responsible for the deposit regardless of whether you have assigned responsibility for it to a third party like an agent.
This means that it is down to you, the landlord, to ensure that it is protected and the tenant is told where (and in which scheme) it is, within 14 days of receiving the deposit.
Any penalties that result from not protecting it properly are the final responsibility of the landlord.
If the deposit is protected in one of the insurance based tenancy deposit schemes (which do not physically hold the deposits) and your letting agent later goes bust, the insurance based scheme will ultimately look to the landlord to pay the tenant back on theit deposit (assuming that there are no valid deductions for damage, of course.)
Landlords should be under no illusions that the insurance based tenancy deposit schemes are a “client money protection scheme.”
They are most certainly not!

SO HOW CAN A LANDLORD PROTECT THEMSELVES AGAINST THEIR LETTING AGENT GOING BUST OR MISUSING THE DEPOSIT MONEY
Well, for a start, before they use an agent, they should carry out financial checks on that agent because letting agents are not regulated and can hold client money without any form of protection for the consumer.
So, use a letting agent or manager who is a member of RICS or ARLA – they do provide some form of protection for client money.
Other letting agencies may be part of associations that also make it a requirement for members to take out Client Money Proection Insurance cover. If they are, do a check that they are really still members and make occasional checks to make sure the insurance cover is still in place.
Not all agents may be members of a trade association but that doesn't mean they are rogues. If they are not in an association, find out how long they have been in business and ask neighbours what their repuation is like.
And if you are in any doubt, just hold the deposit yourself and make sure it is put into one of the tenancy deposit schemes. The National Landlords Association says that an agent cannot refuse this demand. Also, to be on the safe side, make sure rent payments are paid direct into your own account.
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ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
I’m David Lawrenson of LettingFocus.com - the landlord and property letting advice experts.
I’m the author of “Successful Property Letting” which for the last 3 years has been the UK’s top selling property title - Buy Successful Property Letting - How to Make Money in Buy to Let.
The new edition is fully up to date with all the recent changes to tenancy deposit schemes, HMOs, licensing, capital gains taxes and it has new sections on sale and rent back.
I’m an expert freelance property writer, property speaker and I run this well known property letting and investment blog
I contribute to newspapers and a host of property websites, write a number of columns in the press and I provide general property letting advice for anyone looking to buy property for themselves or to let out.
In my work as a consultant I help private individuals with any aspect of buying property or buy to let. What’s unique about lettingfocus.com is that we are independent property investment advisors because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
We simply give one to one unbiased advice and are often asked to evaluate other property investments.
In my corporate consulting role, I also advise banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my blog & find details of my networking, advice and property training programme at my website.Copyright: David Lawrenson 2008. This blog is updated once a week.
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Tenancy Deposit Schemes 6 Months On by Letting Focus

How are tenancy deposit schemes faring 6 months after they started?
At a recent speech I gave to a trade association, the question of tenancy deposit schemes was debated strongly – so I thought it was time that we looked at this again.
Just to recap, if you take a deposit on a NEW tenancy that started on or after 6th April 2007 in England or Wales you have to protect that deposit in one of the tenancy deposit schemes.

Different Sorts of Tenants Deposit Protection Schemes
There are two types of tenancy deposit schemes: a “custodial” scheme where a third party holds the deposit; and an “insurance” scheme where the landlord may hold it.
You have to tell tenants which scheme they are in within fourteen days of receiving the deposit. If you don’t join a scheme, penalties include having to pay the tenant an amount of three times the deposit. Also, you will be unable to regain possession under the so-called “accelerated possession procedure”.
Now, the custodial scheme is free - the running of it paid for by interest on landlords’ deposits, whilst there is a cost for the insurance scheme option.

TDS Insurance Scheme
However, the insurance scheme does have the neat advantage that it allows landlords to hold onto the deposit (rather than pay it into a scheme as is the case with the custodial scheme).
And with the insurance scheme, only if at there is a dispute at the end of the tenancy must the landlord lodge the disputed amount with the scheme.
If you use an agent, just make sure - ask for proof - that they have protected it in the scheme. Or even better, do this yourself.
There is just one custodial scheme at http://www.depositprotection.com/ (Tel 0870 7071707) but there are two insurance-based schemes. One is run by Tenancy Deposit Solutions at http://www.mydeposits.co.uk/ (0871 7030552) and the other is run by the Dispute Service Ltd http://www.tds.gb.com/ (0845 226 7837) and is mainly targeted at agents, though both landlords and agents are free to join any scheme.
The new schemes make it even more important that landlords do a thorough inventory at the start of tenancies, to reduce the chances of disputes at the end.

6 Months On
So how is it going after 6 months?
Well, latest figures from a reader survey for “Landlord” magazine show that 23% of landlords are choosing not to take a deposit at all, 49% are going for the Deposit Protection Service (DPS) (the custodial scheme) while of the insurance based schemes, the clear favourite seems to be the Tenancy Deposit Solutions scheme with 17% with the Dispute Service accounting for 1.4% of respondents to the magazine survey
Another 8% of respondents have opted for separate insurance based solutions which fall outside the formal tenancy deposit schemes.
Rather scarily, claims seem to be running higher than anticipated in the custodial scheme. Also, rather worryingly, the Residential Landlords Association report that of 2,000 claims, only three have proceeded to dispute resolution but none has yet been to adjudication. Oops!
Of the 2,000 claims, 400 were ‘single’ claims, whereby either a landlord or tenant can ask the DPS to settle the deposit in the absence of the other.
Again, this figure is far higher than was anticipated. (Many of the 400 claims are made by landlords after a tenant has left, owing the last month’s rent.)

Statutory Declaration
Landlords should note that with the custodial scheme, they can only recover the money by filling in a Statutory Declaration from the scheme and getting it witnessed by a solicitor, which is a real pain.
By contrast, the process for ending a deposit registered under the insurance based Tenancy Deposit Solutions seems much easier from my experience -and I am personally surprised that more landlords have not bitten the bullet, paid the fee to join an insurance based scheme (about £30 per deposit once you have paid the small joining fee) which would at least give them control of the deposit and easier access to it at the end of the tenancy.
Maybe, some are too mean to pay the fee.

Admin
Now, I am the first to say that the admin involved with the Tenancy Deposit Solutions is a bit of pain, For a start, you are supposed to write to tenants and get a deposit protection certificate signed for each deposit, and keep a copy (as if landlords and tenants have got nothing better to do!)
Also, you are supposed to give a tenant’s alternative address to the scheme (though I have found they will often waive this onerous requirement.)
All a bit of a pain - and it adds up to a lot of work, especially for those in the student and / or HMO market, where turnover of tenants is high, because landlords are supposed to notify and protect a deposit each time a new agreement is made and also notify the scheme if the “lead tenant” changes. (And it is because of the workload that some landlords are using alternatives such as separate insurance based alternatives which fall outside the formal schemes.)

Not Too Bad
But now I have done deposit protection in the insurance schemes a few times, it’s not too bad -which is what delegates at the speech told me too.
But the extra admin has a cost. So, I am now charging tenants for all the "on boarding admin" and reference checks - something I used to do for free.

ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the landlords’ expert and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years.
I have been a landlord and property investor myself for over 25 years.
At LettingFocus we offer independent unbiased
seminars for buy to let investors and landlords as well as one to one advice covering all aspects of being a landlord and investing in property.
Unlike many in the still largely unreguated buy to let and property “advice” business I am not linked to a property company, developer, estate agency or bridging loan provider.
As such I am able to give unbiased independent advice on where to buy (which areas), what type of property to buy, when to buy and how to buy property at a low price. I can also explain how to reduce the risk of getting a bad tenant.

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For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
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Copyright: David Lawrenson 2007. This blog is updated once a week

Tenancy Deposit Schemes Can I Avoid by Asking for More Rent In Advance? Letting Focus Looks Into Whether This Is Possible

I’m going to be writing a few articles about tenancy deposit schemes in the next few weeks here on the blog.
Just as a reminder first, all NEW assured shorthold tenancies which started after 6th April 2007 in England and Wales where a landlord takes a deposit should have the deposit protected in one of the three tenancy deposit schemes the government has set up. There are fines for not complying and you cannot evict under the so called accelerated possession route.

Rent in Advance
Now lots of landlords have asked me, "Can I not just take two months rent in advance instead of one month and not bother with protecting the deposit in the scheme?"
Well, the answer is yes. There is nothing wrong with doing this. In effect, the tenant will pay over the same amount of money at the start.
However, the big difference is that a landlord won’t be protected against damage in the same way as he would if he had taken a damage deposit. This is because the money paid by the tenant would have been rent and as such, cannot be used to deal with damage disputes or disputes or about what was in the inventory etc.
So, in this scenario, in a six month or 12 month tenancy the tenants will just pay no rent in the last two months because they don’t have to – as it has already been paid in advance.
But if they leave the property in a mess or have lost items that were on the inventory, then the landlord will have no money to cover the losses.

Increased Risk
So, whilst a landlord doing this has done nothing wrong, he does significantly increase the risk that the tenants will leave the property in a mess because they have no risk of losing their damage deposit hanging over them when they leave.
Deposit schemes are quite complex. If you need detailed advice on tenancy deposit schemes or landlord and tenant problems generally ask me.

ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the property investment expert and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years.
I have been a landlord and property investor myself for over 25 years.
At LettingFocus we offer independent unbiased seminars for buy to let investors and landlords as well as one to one advice covering all aspects of being a landlord and investing in property.
Unlike many in the still largely unregulated buy to let and property “advice” business I am not linked to a property company, developer, estate agency or bridging loan provider.
As such I am able to give unbiased independent advice on where to buy (which areas), what type of property to buy, when to buy and how to buy property at a low price.

AT OUR SITE LETTINGFOCUS.COM:
Our Events only take place twice a year.
For our NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here:
Next Property Investing Seminar and Networking Event
We have GREAT OFFERS for landlords too, Click here: Services and Products for Landlords to see our Landlords Resources (Useful Links) page. (Selling services to landlords and property investors and have a national coverage? You could be a partner, please get in touch!)

For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
ONE TO ONE CONSULTING click here: Property Consulting
CLIENT TESTIMONIALS from past customers click here: Testimonials
BUY THE BOOK click here: Buy the Book at Amazon
THE HOME PAGE OF THIS BLOG click here: Blog
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Insurance Schemes That Claim to Get Around Tenancy Deposit Schemes - And Why They Won't Work

A colleague at landlordzone.co.uk drew my attention to a scheme that aims to avoid the tenancy deposit schemes (TDS) by having the tenant effectively insure against the rent and damage.
Basically it involves the tenant completing a form and paying a premium under which you the landlord gets cover against rent non payment and damages.
There is a big problem though with these schemes.
The main doubt I have is that the tenant would have to be a very good one to get on the scheme in the first place.
Most of my tenants are from overseas or they are young – in both cases I know from their credit scores that they have limited credit records which would disbar them from any rent guarantee schemes as their credit score would be too low for them to qualify.
However, having a lowish credit score does not a bad tenant make!! (I do other checks on them which confirm whether they are a safe bet or not.)
If I had to wait to get a tenant whose score is high enough to qualify for an insurance policy to cover non payment of rent or agaisnt damages, I’d be waiting a very long time for a tenant!
Copyright David Lawrenson 2007. Back to main site: www.lettingfocus.com

Tenancy Deposit Schemes Will Pass on Info to HMRC

I’ve written previously that one of the reasons for interest in buy to let is that pensions have become less attractive as a savings vehicle following the Chancellors raid 10 years ago on the tax credit on dividends paid out to pension funds.
Of course, buy to letters will, if they know what they are doing benefit from a range of tax exemptions on capital and income taxes.
But, in due course, however, the government will come after landlords for more taxes too.
And so, it has come to pass.
Tony Levene reminds us in Saturday’s Guardian that the providers of the new Tenancy Deposit Protection schemes providers will have a duty to hand over to HM Revenue & Customs details of who is renting out property.
HMRC can request this info under the Taxes Management Act 1970. Of course, HMRC will also know that the rough value of the annual rent is about 12 times the deposit.
So watch out, Gordon is on the warpath for his slice of the buy to let pie.
For Tony Levene’s full article, please see here: http://money.guardian.co.uk/weekly/story/0,,2072495,00.html

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.

Hello, I’m David Lawrenson.
I have been a landlord and property investor myself for over 25 years and am author of “Successful Property Letting” – which has been the UK’s top selling property and buy to let book for the last 3 years.
At LettingFocus.com, we help landlords and property investors make money in property by coaching them in ways that work, which are ethical and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one to one mentoring / coaching basis or through our occasional group seminars.
Unfortunately, in the UK today, property advice in the UK is still largely unregulated and what counts as “good advice” is too often more about making the promoter money than giving useful information to the investor.
With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.
At a corporate level, we also provide consultancy for banks, local authorities and social housing providers – helping them with their landlord facing or buy to let product strategies. We also write for property websites and are regularly quoted by the media.
We have written articles for numerous publications including The Independent, The Telegraph and quality landlord websites.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?
IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME. PLEASE GET IN TOUCH!

See our Twitter page: http://twitter.com/LettingFocus

TO VIEW RELATED POSTS select a “Category” at the bottom of this page.

Agents Say Landlords Are Unprepared for TDS

In last weeks' FT, Sharlene Goff reported widespread confusion among landlords about the tenancy deposit schemes (TDS)
And it seems that the key information on the scheme is coming out rather late in the day.
Follow the link below to this useful article (though please note that landlords who are not in a scheme can STILL evict if the tenant is in serious arrears - they will only be stopped from evicting on "notice only" grounds)
Keep in mind too that the new rules only applies to NEW assured SHORTHOLD tenancies incepted on or after 6th April.
It does NOT apply to assured tenancies and the new rules on TDS do not apply at all (yet) in Scotland and N. Ireland.
Of course, those thinking of going for an assured tenancy instead of an assured shorthold should think carefully, becuase you can't evict on "notice only" grounds with an assured tenancy - you would have to wait for the tenant to be in arrears.
Here is the link to the article
http://www.ft.com/cms/s/fe6d333e-ef55-11db-a64e-000b5df10621,_i_rssPage=d89d6328-51da-11da-9ca0-0000779e2340.html

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.

Hello, I’m David Lawrenson.
I have been a landlord and property investor myself for over 25 years and am author of “Successful Property Letting” – which has been the UK’s top selling commercially published property book for the last 3 years.
Our main business is at a corporate level for organisations - both public and private companies.
We provide consultancy for banks, local authorities, social housing providers and other organisations – helping them with their landlord facing or buy to let product strategies and services.

OTHER WORK
We also write for property websites and are regularly quoted by the media. In addition, we have written articles for numerous publications including The Independent, The Telegraph and quality landlord websites.

MENTORING
For private landlords, we also find some occasional spare time to help landlords and property investors make money in property by coaching them in ways that work, which are ethical and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one to one mentoring / coaching basis or through our occasional group seminars.
Unfortunately, in the UK today, property advice in the UK is still largely unregulated and what counts as “good advice” is too often more about making the promoter money than giving useful information to the investor.
With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
For general info on our CONSULTING click here: Consultancy and Seminars
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?
IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME. PLEASE GET IN TOUCH!

See our Twitter page: http://twitter.com/LettingFocus
Copyright: David Lawrenson 2007 Back to main site www.lettingfocus.com

Tenancy Deposit Schemes The Facts From LettingFocus

Yes, they are here now.
And yet, I was surprised to see how little there was in the weekend papers on them.
If you have been confused by some of the reporting on them, here is just a few things to get straight.
They ONLY apply for NEW Assured Shorthold tenancy agreements dated on or after 6th April.
They DO NOT apply to existing tenancy agreements which were set up before 6th April where the agreements is already (or will in future) simply be extended to become a monthly periodic agreement.
They DO NOT apply YET in Scotland or Northern Ireland.
They DO NOT apply to other agreements other than assured shorthold ones. So, you could try an assured tenancy and not have to bother with putting a deposit in a scheme, but with an asured tenancy, you won't be able to get the tenant out unless he defaults or is in any other way in breach of the tenancy agreement.
Oh and finally, those bad landlords who make a point of never returning deposits - and who the schemes are supposed to stop - will ignore it anyway and use all their various nasty trcks to coerce and bully tenants into not reporting them for not being in the scheme.
So, the whole thing is a waste of time really.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.
Hello, I’m David Lawrenson.
I’ve been a landlord and property investor myself for over 25 years and am author of “Successful Property Letting” – the UK’s top selling commercially published property book for the last 3 years.
Primarily, I work as a consultant to banks, local authorities, social housing providers and other organisations – helping them with their landlord facing or buy to let product strategies and services.
I also write for property websites and am regularly quoted by the media.
I have written articles, guides and documents on letting property and property investing for numerous publications including The Independent, The Telegraph and for quality landlord and property websites.

Services for Private Landlords

For private landlords and other investors in the private rented sector, we do two London seminars each year.
We also find some spare time to help landlords and property investors by coaching them in how to make money in the private rented sector using ways that work, which are ethical, fair to tenants and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one to one mentoring / coaching basis or through our occasional group seminars.
With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
For general info on our CONSULTING click here: Consultancy and Seminars
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?
IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME. PLEASE GET IN TOUCH!

See our TWITTER PAGE: http://twitter.com/LettingFocus

Copyright of Blog: David Lawrenson 2007. This blog is updated roughly once a week usually on a Monday or Tuesday.

TO VIEW RELATED POSTS select a “Category” at the bottom of this page.
WANT TO ADD A COMMENT OR VIEW OLD COMMENTS?
To add a comment or view other people's comments on this post, simply click on “link to this post.”

Tenancy Deposit Schemes A Guide - Part Three

Can you ignore Tenancy Deposit Schemes?
No, you would be wise not to ignore the new rules.
Landlords letting under Assured Shorthold Tenancies in England and Wales who take deposits will have to tell tenants which scheme they are in within 14 days of receiving a deposit.
The penalties for not doing so are very tough.
For example, if a tenant finds out his landlord is not in an authorised tenancy deposit scheme he can apply to county court to get his deposit back.
The court can also impose penalties of three times the deposit amount which the landlords would then have to pay to the tenant!
Also, if a landlord isn’t in a scheme or fails to give tenants details about the scheme, it will not be possible to regain possession using a section 21 notice - the not so aptly named “accelerated possession procedure.”
Any exemptions? There is no TDS scheme currently for lets in Scotland or Northern Ireland (though both countries have more wide ranging HMO schemes and in Scotland all landlords must be registered too.)
In England and Wales if you have a company let, let rooms in your own home or if the annual rental on the tenancy is in excess of £25K you will also be exempt from TDS too.
More on TDS will follow in subsequent posts.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.

I’m David Lawrenson, a landlord and property investor myself for over 25 years and author of “Successful Property Letting” – the UK’s top selling commercially published property book for the last 3 years.

Services to Businesses and the Public Sector

Primarily I am a consultant to banks, local authorities, social housing providers and other organisations – helping them with their landlord facing or buy to let product strategies and services.

For example, I help banks improve their buy to let mortgage lending practices and I help housing association / local authorities find private landlords (private rented access schemes, local letting agency models etc.)
I also write for property websites and am regularly quoted by the broadcast media.

Services for Private Landlords

We also find some spare time to help landlords and property investors by coaching them in how to make money in the private rented sector using ways that work, which are ethical, fair to tenants and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one-to-one mentoring / coaching basis or through our occasional group seminars. With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog

THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page

For general info on our CONSULTING click here: Consultancy and Seminars

ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring

NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event

We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords

TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials

BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?

IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME.

PLEASE GET IN TOUCH!

See our TWITTER PAGE: http://twitter.com/LettingFocus

Copyright of Blog: David Lawrenson 2007. This blog is updated roughly once a week usually on a Monday or Tuesday.

TO VIEW RELATED POSTS select a “Category” at the bottom of this page.

Tenancy Deposit Schemes A Guide - Part Two

How Will the TDS Schemes Work in Detail?
There will be two types of tenancy deposit scheme. First, there will be a “custodial scheme” where a third party will hold the deposit and pay out at the end of the tenancy on the terms agreed between landlord and tenant.
The second type of scheme is called "the insurance scheme" and it's this one that will probably be more attractive to landlords
Under this type of scheme, the landlord gets to keep the deposit.
Then, if at the end of the tenancy there is a dispute, the landlord will have to pay the deposit amount into the insurance scheme. where it is then held until both parties come to an agreement - with the amounts agreed being paid out by the administrator of the scheme.
The scheme will have a dispute resolution procedure which will be free to use but if the landlord and tenants can't agree, then a court could decide how the money should be split, with the administrator having to follow the courts decision.
The insurance kicks in and will pay out if the landlord fails to pay the deposit into the account - in which case the scheme and the insurer would then puruse the landlord for recovery of the money and the landlords' membership of the scheme would be terminated.
More on this later this week.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.

I’m David Lawrenson, a landlord and property investor myself for over 25 years and author of “Successful Property Letting” – the UK’s top selling commercially published property book for the last 3 years.

Services to Businesses and the Public Sector

Primarily I am a consultant to banks, local authorities, social housing providers and other organisations – helping them with their landlord facing or buy to let product strategies and services.

For example, I help banks improve their buy to let mortgage lending practices and I help housing association / local authorities find private landlords (private rented access schemes, local letting agency models etc.)
I also write for property websites and am regularly quoted by the broadcast media.

Services for Private Landlords

We also find some spare time to help landlords and property investors by coaching them in how to make money in the private rented sector using ways that work, which are ethical, fair to tenants and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one-to-one mentoring / coaching basis or through our occasional group seminars. With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog

THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page

For general info on our CONSULTING click here: Consultancy and Seminars

ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring

NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event

We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords

TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials

BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?

IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME.

PLEASE GET IN TOUCH!

See our TWITTER PAGE: http://twitter.com/LettingFocus

Copyright of Blog: David Lawrenson 2007. This blog is updated roughly once a week usually on a Monday or Tuesday.

TO VIEW RELATED POSTS select a “Category” at the bottom of this page.

Tenancy Deposit Schemes - Start to Our Guide

One of the key measures bought in with the Housing Act was the introduction of what are called Tenancy Deposit Schemes.
From 6th April 2007, all landlords in England and Wales who take deposits and whose tenancies fall within the provisions of the Housing Acts (which includes all tenancies with a rental value of less than £25,000 a year) will have to join an authorised tenancy deposit scheme.
The idea is that these schemes will protect tenants’ deposits from rogue landlords who don’t pay up at the end of the tenancy.
Over the next few weeks, on this blog, I will look at how the different schemes will work and why the government is bringing in the changes.
You should not ignore the new system becuase if you take deposits on a new tenancy from April 6th but don't join a tenancy deposit scheme you will struggle to regain possession of your property and you will be liable to pay the tenant three times the value of the deposit.
Scary stuff!
So look out for more info here and use the Categories at the bottom to navigate to more info on tenancy deposit schemes.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.

I’m David Lawrenson, a landlord and property investor myself for over 25 years and author of “Successful Property Letting” – the UK’s top selling commercially published property book for the last 3 years.

Services to Businesses and the Public Sector

I am a consultant to banks, local authorities, social housing providers and other organisations – helping them with their landlord facing or buy to let product strategies and services.

For example, I help banks improve their buy to let mortgage lending practices and I help housing association / local authorities find private landlords (private rented access schemes, local letting agency models, research work on the PRS etc.)
I also write for property websites and am regularly quoted by the broadcast media.

Services for Private Landlords

We also find some spare time to help landlords and property investors by coaching them in how to make money in the private rented sector using ways that work, which are ethical, fair to tenants and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one-to-one mentoring / coaching basis or through our occasional group seminars. With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog

THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page

For general info on our CONSULTING click here: Consultancy and Seminars

ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring

NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event

We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords

TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials

BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?

IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME.

PLEASE GET IN TOUCH!

See our TWITTER PAGE: http://twitter.com/LettingFocus

Copyright of Blog: David Lawrenson 2007. This blog is updated roughly once a week usually on a Monday or Tuesday.

TO VIEW RELATED POSTS select a “Category” at the bottom of this page.