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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Did you know ... estate agents/ rentals/ deposits

20 replies

3BSHKATS · 21/04/2023 17:38

This is a new one but i wonder if anyone else has solved this without court action.
That if an estate agent holds your rental deposit and the landlord goes awol, they don't have to return it, it just sits there in the agents bank account.
I wonder how many more of these anomalies earn corporations thousands in interest every year. It all adds up

OP posts:
Coffeellama · 21/04/2023 17:40

Rental deposits legally have to be held in a deposit protection scheme, they don’t stay with the estate agent. So im not sure what you mean.

sunseaandme · 21/04/2023 17:41

I thought deposits are looked after by the deposit protection scheme? It was my understanding that this is the law in the UK , for estate agents anyway

PsychoHotSauce · 21/04/2023 17:41

Surely you just go the the deposit scheme (is it TPS? I should know this, I rent!) And even if landlord is awol it's returned to you.

Original poster
3BSHKATS · 21/04/2023 17:43

No the landlord has to agree. And if it is physically in the agents account not the landlords the landlords signature is the only thing that will release it - or a court order.

OP posts:
Coffeellama · 21/04/2023 17:44

3BSHKATS · 21/04/2023 17:43

No the landlord has to agree. And if it is physically in the agents account not the landlords the landlords signature is the only thing that will release it - or a court order.

Nope it’s a legal requirement. You are 100% incorrect.

Original poster
3BSHKATS · 21/04/2023 17:44

Coffeellama · 21/04/2023 17:40

Rental deposits legally have to be held in a deposit protection scheme, they don’t stay with the estate agent. So im not sure what you mean.

You're incorrect the physical money never leaves the agents account - they pay £20 to buy an insurance type policy but they keep the money.

OP posts:
Original poster
3BSHKATS · 21/04/2023 17:45

Coffeellama · 21/04/2023 17:44

Nope it’s a legal requirement. You are 100% incorrect.

Show quote history

I'm really not - I have been a landlord myself - you don't physically part with the money - it's a common misconception

OP posts:
Coffeellama · 21/04/2023 17:45

3BSHKATS · 21/04/2023 17:44

You're incorrect the physical money never leaves the agents account - they pay £20 to buy an insurance type policy but they keep the money.

Show quote history

Nope you aren’t going to stop being wrong… either do some research or stop making crap up!

https://www.gov.uk/tenancy-deposit-protection

Tenancy deposit protection

Tenant's guide to deposit protection schemes - your deposit, information landlords must provide, disputes and advice

https://www.gov.uk/tenancy-deposit-protection

PsychoHotSauce · 21/04/2023 17:46

After you've paid your deposit, the landlord or agent must then protect your deposit using a tenancy deposit scheme. There are two types of scheme available:

  • A custodial scheme, where the landlord or agent pays the deposit to the scheme, which will keep it until the end of your tenancy.
  • An insurance scheme, where the landlord or agent keeps the deposit but pays insurance premiums to the scheme. This means that the deposit is insured if there is any dispute, and the scheme will repay the tenant the agreed amount directly. The insurance scheme can charge fees to landlords for membership and can require contributions towards the costs of insurance.

So either way you can recover it through the deposit scheme OP. If it's not in one you can take the LL to court for up to 3x deposit plus original deposit back iirc

Original poster
3BSHKATS · 21/04/2023 17:47

Coffeellama · 21/04/2023 17:45

Nope you aren’t going to stop being wrong… either do some research or stop making crap up!

https://www.gov.uk/tenancy-deposit-protection

Show quote history

I'm sure someone else will come a long to collaborate - as a landlord you arent required to send the money anywhere, you pay to protect the deposit but you do not physically part with the cash.

OP posts:
Original poster
3BSHKATS · 21/04/2023 17:49

PsychoHotSauce · 21/04/2023 17:46

After you've paid your deposit, the landlord or agent must then protect your deposit using a tenancy deposit scheme. There are two types of scheme available:

  • A custodial scheme, where the landlord or agent pays the deposit to the scheme, which will keep it until the end of your tenancy.
  • An insurance scheme, where the landlord or agent keeps the deposit but pays insurance premiums to the scheme. This means that the deposit is insured if there is any dispute, and the scheme will repay the tenant the agreed amount directly. The insurance scheme can charge fees to landlords for membership and can require contributions towards the costs of insurance.

So either way you can recover it through the deposit scheme OP. If it's not in one you can take the LL to court for up to 3x deposit plus original deposit back iirc

Which is what i am letting other people know so they do not end up in the same situation. The second scheme is the more popular for obvious reasons and without the landlord agreeing you will not have your deposit returned.

OP posts:
Coffeellama · 21/04/2023 17:49

This wouldn’t change the tenants rights as the insurance scheme would refund the money to the tenant. The deposit is legally protected. Maybe you were a landlord before 2007?

Original poster
3BSHKATS · 21/04/2023 17:51

Coffeellama · 21/04/2023 17:49

This wouldn’t change the tenants rights as the insurance scheme would refund the money to the tenant. The deposit is legally protected. Maybe you were a landlord before 2007?

No 2018.
We had a dispute but settled it between us.
My dispute is with an agency - the TDS has no teeth. They will not force the agency to pay back the deposit, they can't.

OP posts:
PsychoHotSauce · 21/04/2023 17:52

3BSHKATS · 21/04/2023 17:51

No 2018.
We had a dispute but settled it between us.
My dispute is with an agency - the TDS has no teeth. They will not force the agency to pay back the deposit, they can't.

Show quote history

Yeah, so the TDS pay it, through the premiums the LL has paid. I'm not sure what the issue is.

MovingToCranford · 21/04/2023 17:55

I’m confused. You sound confused! Which one of the two schemes is your LL using?

JustGotToKeepOnKeepingOn · 21/04/2023 18:06

I had an issue getting money back from a DPS (the tenant left and was never to be seen again) and the estate agent sorted it all out. Money which IS held in the DPS was released with no problem, as estate agent took my claim (and several other claims) to court. Apparently it happens all the time and is easily sorted.

Berklilly · 21/04/2023 18:11

I didn't know about it until recently but OP is correct, there are 2 different types of DPS schemes available for landlords, and in case of the insurance type the money is held by the landlord or the agent.

I'm surprised though that in the situation described by OP, the insurance doesn't kick in as I thought this was there for (insurance pays back the tenant and then can always claim back against the landlord?)

NoProbLlamaa · 21/04/2023 19:33

It will eventually be released by the deposit scheme.

I had a returned deposit from university that came through many years later (I didn’t even know it was still in there!)

Original poster
3BSHKATS · 21/04/2023 19:36

JustGotToKeepOnKeepingOn · 21/04/2023 18:06

I had an issue getting money back from a DPS (the tenant left and was never to be seen again) and the estate agent sorted it all out. Money which IS held in the DPS was released with no problem, as estate agent took my claim (and several other claims) to court. Apparently it happens all the time and is easily sorted.

You can release it because you are the landlord, the tenant can't it just sits there until a court order releases it.

Just check which scheme your estate agent uses and if you can express a preference, pick the other one.

OP posts:
Original poster
3BSHKATS · 21/04/2023 19:37

MovingToCranford · 21/04/2023 17:55

I’m confused. You sound confused! Which one of the two schemes is your LL using?

Nothing to do with the landlord this is an agent - LL is long gone.

OP posts:
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