Have you ever wondered what a Deposit Protection Scheme is and why it matters to you as a Landlord? Before we explain, we’re going to tell you a little story:
Mr. Landlord came into Luscombe & Co’s letting office this week. He was completely distraught and concerned about the situation he was currently in.
He has a tenant in a property which is managed by a local ‘agent’. The tenant has been in the property for eight months. After struggling to get in touch with his managing agent and not receiving any rent payments for two months, Mr. Landlord decided to approach the tenant directly to establish what the situation was.
The tenant soon informed him that the ‘managing agent’ had disappeared. She was having a nightmare living in this property and had been paying her rent to the ‘managing agent’.
After not getting a hold of the ‘managing agent’ for three months, Mr. Landlord also found out that the agent didn’t register the tenant’s deposit.
This is exactly where the Deposit Protection Scheme is so important. If a managing agent takes on a new tenant for a landlord, they have to register the deposit with the Deposit Protection Scheme within 30 days of the tenancy. This ensures that the deposit money is kept safe by a third party which, in turn, gives protection to all the parties involved.
If the managing agent mentioned above had registered the desposit, Mr. Landlord would’ve been able to get the deposit back to return to the tenant. But now he is out of three months rent and he has to pay the tenant their deposit out of pocket.
Here at Luscombe & Co our first priority is that you, the client, are taken care of. That’s why we are registered with the Deposit Protection Scheme. We are assisting Mr. Landlord and hope we can also help other landlords before they fall prey to the same disaster.