UK Landlord Forum / Life

Hi, I am new to this so bare with me. I am setting up a deposit scheme for a new tenant and we are starting with a six month contract to see how it goes, but when setting up the scheme it asks for a end date, which if in six months all is going well and the tenant wants to stay on for another 6 months,then they have said via live chat I would have to pay the price again? I am doing the one where we keep the money and pay a fee, But after the end date I have put in, it automatically goes on a month to month basis on the scheme which wouldn't cost, but if I do an actual new 6 month contract which I would of thought I need to to cover our butts by contract? then we would have to pay again, even though same tenant, same address, I'm a bit confuesed, so I hope this makes sense? any ideas of what I can do?

Use a Custodial Scheme?

Allow the tenancy to go periodic then there are no more fees.

For it to go month to month do I need to do a new tenancy agreement every month? Seems a lot of work or can I do an agreement once this six months is up and word it that it's a month to month basis? Just want to do it properly and not sure how? Haven't heard of custodial scheme, will look into that.

From your questions you need to do a lot of reading before you embark on being a landlord.  Suggest bare minimum you start with the main websites guides.

There are professional tenants out there.  You need to know more than they do.

Like I said, I'm new to it, so still learning, I couldn't remember the other deposit scheme was called custodial, but have looked into it and wanted to do The insurance based scheme and just therefore wanted a bit of advice on my issue.

Don't take offence, just trying to help out.  You've been enlightened about the deposit schemes and the answer to your contract question is no, initial 6 months fixed then it rolls to periodic with no further contracts required.  Just answering questions that you think of won't help you long term, you need to increase your knowledge of the whole subject.

Do you know the legal way to terminate a tenancy for example?

Quote from: Launa on May 20, 2015, 04:47:22 PMLike I said, I'm new to it, so still learning, I couldn't remember the other deposit scheme was called custodial, but have looked into it and wanted to do The insurance based scheme and just therefore wanted a bit of advice on my issue.

What Riptide is, rightly, saying is that you appear to be floundering in this manner waaaaaaay too late in the process. Your first post implies your tenancy is already kinda set up and in force. So, yes, you've genuinely left it a bit late to be wondering about this kind of really basic stuff. We now start to worry whether you've done all the other stuff - not suggesting you haven't, by any means - just that we're worrying (for you).

Nothing meant to cause offence, just a ticking-off... don't take offence and don't even take it to heart, this will all feel like nothing at all if your Tenant turns out to be a bad 'un. Fingers-crossed.

It's all happened rather quickly and all been put on me, but I thought I was doing okay until you guys pretty much told me otherwise! 😞 No offence taken, just a mum trying to get back in the land of using my brain again's confidence taken a hit! Back to the drawing board for me, should of stuck to changing nappies.

As Landlords we just hate to see other Landlords getting into a pickle, or being taken advantage of by canny Tenants whose only intention is to do that. The deposit protection is all dead easy, but you must get it right otherwise the consequences can be severe - a penalty of up to 3x the deposit value. So worthwhile doing your research and asking what you need to here.

I've said this many times but I see nothing wrong with the DPS Custodial Scheme. It's simple and it works. Some Landlords prefer the Insurance based schemes, and I can see why... but for simplicity and ease of use the DPS Custodial is there for us who don't like to think too much, or don't want to hold onto a Tenant's deposit (for obvious reasons).

I use the insurance scheme too launa.

You do have to pay again. But its £20, so not worth bothering about IMO.

The guys are also right mate, you need to smarten up, make sure you print off the scheme stuff and get a copy signed to say they have had it... BOTH times, keep these safe, do it within 30 days of taking the deposit, renewing the agreement.

Good on you for having a go, but you wouldn't be impressed if someone just set up an Agency to manage properties with the level of "training" you have at the moment, you should, must and always consider yourself as a professional letting Agent, whether its one house or one hundred, as the rules are the same for one as one hundred.

Thats the point of us old men, we understand this, and from my own perspective still mess up!!

There is no fee if it goes from fixed term to spt bob.

Just to reiterate what I thought was one key part of that advice.

Make sure you get the Prescribed Information signed TWICE if you want to avoid compromising you rights as a landlord. Once at the start of the AST and once when it goes Periodic.

The law hates all landlords, and tars them all with one great big wide brush.