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the_dork

Would You Take A Tenancy Where No Deposit Protection?

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Looking at a place being let as HMO,decent rent rate and property. LL is scatty but seemingly not malicious (not BTL, a inherited property). Have asked whether deposit(1 month rent) is going into scheme and she says not but that he doesn't rip people off, all other tenants have got their money back etc. Doesn't seem to realise it's a legal thing rather than me just being particular in asking for it

The tenancy agreement is pretty vague and I could rely on this in the event of any dispute.

I know that there is a penalty (3X deposit) potentially awardable if not protected, is it worth taking a chance on this one anyway?

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Are you getting a below market rate? If so, perhaps think of it in terms of part of the rental cost. Assume you'll get nowt back from the deposit, divide it by twelve and add it to the rent you are paying.

If you do get it back, bonus.

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Take it, then do one of the following

  1. cross your fingers that you get the money back
  2. mentally write it off (as post above)
  3. If you don't like the LL at some point in the future, claim 3x back
  4. If you don't get the deposit back, claim 3x
  5. Even if you do like the LL & do get the deposit back, claim 3x anyway

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Are you getting a below market rate? If so, perhaps think of it in terms of part of the rental cost. Assume you'll get nowt back from the deposit, divide it by twelve and add it to the rent you are paying.

If you do get it back, bonus.

Thanks for the responses. Yes, it is probably 10%-15% below market rate but not really thinking of it that way. I'm more wondering whether the fact that I've alerted the LL that it should be protected,they've told me it's not and then if I took the tenancy would I be shown to have agreed to this? Or could I just claim that didn't know it was legal requirement to protect hence took the tenancy after LL assured me they were 'decent'

BTW, anyone actually aware of any cases regarding paying 3* deposit amount?

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Thanks for the responses. Yes, it is probably 10%-15% below market rate but not really thinking of it that way. I'm more wondering whether the fact that I've alerted the LL that it should be protected,they've told me it's not and then if I took the tenancy would I be shown to have agreed to this? Or could I just claim that didn't know it was legal requirement to protect hence took the tenancy after LL assured me they were 'decent'

BTW, anyone actually aware of any cases regarding paying 3* deposit amount?

Nothing that the LL can do will allow him to "contract" out of protecting a deposit (assuming that it's a "qualifying" lease)

There are cases of LL's being "fined" 3 times for non protection.

tim

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It depends how much you want the place.

If you really want to live there, then come out with some non-committal form of acquiescence in verbal conversation, but refuse to sign anything that implies that you're waiving your right to deposit protection. If at the end of the tenancy you get the deposit back, well and good; if you don't, then it's straight to the small claims court and 3x the deposit.

If you're not really that fussed about this property, play hardball and tell the LL that unless he's willing to protect your deposit, you're going to go elsewhere; and that this is non-negotiable.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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