Two of the schemes involve a landlord or their letting agent having to pay a fee to the provider who then insure the deposit against potential loss and which allows the landlord or letting agent to retain the tenancy deposit.
It appears that because of the high number of cases going to arbitration. That is where the lanldord fail to agree on the return of the rental deposit one of the Tenancy Deposit Scheme providers The Dispute Service has had to increase their charges by 23%.
The other paid for provider of tenancy deposit services My Deposits has responded by stating that it is not going to raise it's charges! It's all getting very catty...
We say sod the lot of them. Why pay to hold on to your tenants deposit when the other custodial scheme the deposit protection scheme allows you to deposit it for free...zilch.
The other alternative for landlords is not to take a deposit at all and just ensure that you have a guarantor and charge an administration fee.
Landlord insurance - are you fully covered?
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