DINKY & RENTING Posted March 2, 2007 Share Posted March 2, 2007 I was wondering if renters had any claim to the interest earned on deposits being held by Estate Agents. The EA has held on to my deposit of £945 for the best part of a year and is no doubt earning interest on it. Are they legally entitled to the interest. In theory the money is still mine as it will be returned to me. Am I not therefore entitled to the interest made on it or the interest that my own savings account would have made on it. It is sickening to think the the EA is making money on the deposit when the don't do anything. The property is managed by the landlord. Any ideas out there? Quote Link to comment Share on other sites More sharing options...
waitingandsaving Posted March 2, 2007 Share Posted March 2, 2007 I had this dispute with my letting agent, before moving into the property - they wanted 6 months rent up front, due to definite secured job before moving to new area (although it was all in the bag...) as well as the deposit. I was told that deposits and monies up front get put into a bonded account, with no interest paid. I found this somewhat unbelievable, and the agent assured me that she wished it was different too, so while I don't believe it, that's the story! It seems silly, and you would have thought that it would be in everyone's interests to see the money grow, and split the profit... Good luck with finding a way around the EAs, and if you find a solution to this (or find I've been fed a pack of lies!), then let us know!! Quote Link to comment Share on other sites More sharing options...
DINKY & RENTING Posted March 2, 2007 Author Share Posted March 2, 2007 I'm a cynical person - It's in the EAs own interest to see the money grow and keep 100% of the interest. I will ask the agent I deal with the question and see what they say. Quote Link to comment Share on other sites More sharing options...
d321 Posted March 11, 2007 Share Posted March 11, 2007 Tenancy agreements should have a clause that states : no interest will be paid by the landlord to the tenant in respect of the deposit. If that does not exist, in theory, the tenant has claim to the interest and I would have thought the EA/ landlord would have to prove that the deposits are not in an interest bearing account. At the end of the day, it is not a huge sum of money to the tenant, but it all adds up for the EA if they are holding a lot of deposits! Quote Link to comment Share on other sites More sharing options...
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