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Interest On Deposit

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Is it really true that landlords can keep the interest earned on your deposit?

I am about to move and will ask my landlord for the deposit and the interest rate. Unfortunately I could not find any information that states that landlords have to pay interest on the deposit.

Can anyone help?

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You have no right to ask for the interest, and he has no obligation to give it to you. In almost every case the landlord is permitted to keep any interest from the deposit, primarily because it is assumed to about cover his time and costs of keeping and administering the deposit.

Edited by MrShed

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My tennancy agreement through an agent states that :-

"The Landlord's Agent holds the Deposit as Agent for the Landlord. The deposit to be a minimum of one month's rent, unless otherwise agreed. No interest is paid to either the Landlord or Tenant on deposit monies held."

So I guess all interest goes to the agent in my case.

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My tennancy agreement through an agent states that :-

"The Landlord's Agent holds the Deposit as Agent for the Landlord. The deposit to be a minimum of one month's rent, unless otherwise agreed. No interest is paid to either the Landlord or Tenant on deposit monies held."

So I guess all interest goes to the agent in my case.

This is disgusting

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Oh come on. It's hardly disgusting, there are a lot of things to be disgusted about, the loss of £10 over a year or something is not one of them. Landlords have genuine costs to cover when dealing with deposits, this is quite a light charge if you ask me.

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Guest muttley

There is a proposal afoot whereas the deposit is held by a centrally controlled Government body instead of the landlord.The idea is to cut down on LLs and tenants taking cases to court where the LL is deemed to have withheld part of the deposit unreasonably.

Would post a link,but I can't be arsed.(Well it's gone 2.00am)

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There is a proposal afoot whereas the deposit is held by a centrally controlled Government body instead of the landlord.The idea is to cut down on LLs and tenants taking cases to court where the LL is deemed to have withheld part of the deposit unreasonably.

Would post a link,but I can't be arsed.(Well it's gone 2.00am)

Its more than a proposal it goes live in October. There will be two tenancy deposit schemes, one of which the landlord/agent still holds the money.

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There is a proposal afoot whereas the deposit is held by a centrally controlled Government body instead of the landlord.The idea is to cut down on LLs and tenants taking cases to court where the LL is deemed to have withheld part of the deposit unreasonably.

That will just mean the government get to keep the interest! :rolleyes:

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Guest Winners and Losers

In Australia the deposit goes into a particular holding fund through the agent. I don't think anyone gets the interest (well, certainly not me - must check this one with my agents).

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I can see both sides of this... You could earn a nice little sum on your deposit if it were in an ISA - enough to go out for a decent meal, so I can understand why people would want the interest.

However, it could be more hassle than it's worth arguing about it, and the landlord does have the value of their time to consider when administering the deposit, so I wouldn't be inclined to make a fuss, especially if renting had enabled me to avoid the massive losses inflicted by a HPC.

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Just about to move into a new flat. If we pay a fee of £50 it can be put into an intrest account and we will receive the intrest when our deposit is refunded. Obviously if we don't the agent will be creaming that intrest off the deposit, at least the option is there though.

Not worth it unless you have a big deposit or know you will be staying there for a long period.

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If you are renting through an agent, as I am, they will keep all interest on deposits held, even over 2 years!!!!.

I have asked my agent (perry&partners), and they say the money is held in a "special" account that gains no interest.. Hmmm...... That does not make buisness sense.......

I will be moving again soon, will not be paying my last months rent and if they decide to claim for anything from my deposit I will work out the money I owe, minus the interest I could have earned in a 10% A&L account and pay them that......

They can then sue me, I don't care, not like I've got a house to loose...

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