Tenancy Deposit Protection Scheme

[bluemonday]

Since 6th April 2007, all deposits (for rent up to £25,000 per annum) taken by landlords and letting agents for Assured Shorthold Tenancies in England and Wales, have been protected by a tenancy deposit protection scheme.

This mechanism can also provide arbitration in the event of tenant/landlord dispute over deposits.

 

The Isle of Man has I believe, no such scheme.

 

Given the proportion of rental property in the IOM, do you think a similar scheme should be set up here?

 

Are there advantages/disadvantages you can see?

 

Opinions please

[aimeejulia]

I think there were rumours that there is to be a reform of the rent law. I do think that the Isle of Man needs to update the law at the moment the landlord has the upper hand and the tenants more often than not have to put up with landlords that don't care about providing basic level living conditions. Properties are left to be full of mould, wear and tear damages never get repaired and the rent paid is ever increasing instead of being to par with the standard that is actually offered.

 

Also some landlords don't provide a lease, anyone living in rented accommodation without having signed a lease should know that this means the landlord can throw you out whenever it pleases him/her unless you can prove that you've been paying the guy rent. So pay cash beware. Also you should always ask for a receipt and conditions for the deposit paid and you should insist this is signed. An unsigned note is useless. Make sure you keep a copy of the lease and the deposit receipt safe. If there is any wear and tear damage you should report if immediately to the landlord, if it says on the lease the landlord is responsible for repairs than he/she will have to repair it.

[piebaps]

Advantages are as you infer - Dispute resolution and tenant protection.

 

Disadvantages = Who pays? If it's the beneficiaries of the system then fair play. If it's the taxpayer then maybe not. I guess it depends on the costs and how many runaway extensions etc could be bought for the same money.

[John Wright]

There is a consultation paper doing the rounds for a new bill governing tenants rightsetc and giving powers to the Rates and Rent Tribunal

[bluemonday]

Thanks John

Is this consultation anywhere online at the moment?

Would that also cover deposits in the private sector and disputes regarding deposits?

 

piebaps, re

Disadvantages = Who pays? If it's the beneficiaries of the system then fair play. If it's the taxpayer then maybe not. I guess it depends on the costs and how many runaway extensions etc could be bought for the same money.

the The Deposit Protection Service (The DPS) in the UK, one of the schemes available there, is funded and run entirely from the interest from the deposits it holds.

http://www.direct.gov.uk/en/TenancyDeposit/DG_066391

[ballaughbiker]

In the UK it is still possible for the landlord to hold on to the deposit for a small insurance fee until there is a dispute. He then has to hand it over to the arbitrators. I have no issues either way except that it is an extra cost.

[John Wright]

http://www.gov.im/ConsultationDetail.gov?id=96

 

not part of draft bill

 

consultation closed

[bluemonday]

Thanks for all previous replies.

Next question

Has anyway who has rented in the past had any problems getting their deposits back?

I've been told several horror stories second hand but I'd like to hear peoples opinions on here.

Feel free to PM me if you don't want to post.

[piebaps]

I rented BM and got deposit back no problem. Even when there was some minor damage to bits and pieces (normal domestic accidents etc rather than any kind of abuse). The property was let from a total stranger and I picked it from a newspaper ad. I made sure that I got along with the landlady and we had no problems. I think I was even paid a small amount of interest on the deposit too.

 

I see that UK funding comes from investment of deposits and wonder if that would be feasible here given the smaller scale IYKWIM.

[RC-Drift.com]

I want to resurrect this thread as I believe the IoM most certainly does have a need for Tenancy Deposit Protection Schemes after working in many and varied rental properties and seeing the condition the landlord sees fit to keep the property in

 

...pity it wasn't part of the finance sector as the IoM government seems to actually care

[Moghrey Mie]

I want to resurrect this thread as I believe the IoM most certainly does have a need for Tenancy Deposit Protection Schemes after working in many and varied rental properties and seeing the condition the landlord sees fit to keep the property in

 

...pity it wasn't part of the finance sector as the IoM government seems to actually care

 

 

Maybe David Cretney would put it in the Labour Party Policy update.He is looking for ideas from the public.

[ballaughbiker]

Isn't there two distinct problems here that are being merged?

 

Problem 1: Landlords are renting property not fit for purpose - don't rent it in the first place then.

Problem 2: Landlords are not paying back deposits when they should or unreasonably witholding deposits for wrongly claimed damage. - Take photographs or video clips for evidence at start of let.

 

I can understand that there might need to be a system to control #2 if, on presentation of evidence, the landlord still refuses to refund a deposit despite clear evidence that so-called damage existed prior to a let. The uk system is very much weighted on the tenant's side with extra costs of 3rd parties now having to be paid, by the tenant of course.

[cssmonauts]

After leaving our last property, I arranged to meet the landlord on a Wednesday to discuss any retention from the deposit; the carpets needed a clean, but other than that, after 2 years, it was as we found it. On the preceeding Tuesday I receive a cheque in the post for our deposit LESS £500.

 

I had £500 "retained" from my deposit for alleged damage, that when queried, he struggled to list. Oil tank was full when we entered the property, was replaced mid-tenancy with a new tank 25% bigger, and had money retained for it not being full at the end of the tenancy.

 

When pressed, no good reason or list was forthcoming but he ended the conversation with "We can talk about it, but I'm not giving you any more money..."

 

Nice. Something is DEFINITELY needed.

[Dodger]

Fit for purpose, I grew up in a house that had to be treated twice for dry rot, this meant that all the walls had to be hacked back to the stone and then sprayed/pumped with the chemical, no central heating and no double glazing. But, as it was owned by my parents, that is fine.

 

Does fit for purpose include central heating? Double glazing?

 

People say that they have damp coming in when it is black mould from condensation, yet complain to landlords to get it cleaned, there needs to be ventalation, but people keep the doors and windows closed to keep the cost of heating down, bit of a catch 22.

 

A deposit should be returned once the tenant has moved out and returned it in good order, if they move out with the place not in good order it should be the deposit minus any costs associated with bringing it up to a re-lettable standard. If the tenant on leaving feels that they have satisfied the return criteria and the landlord disagrees, then there should be a means of mediation, though costs could be more than the deposit, so may be a waste of time.

 

As a seperate thought, would/could the landlord increase the rent to compensate if the deposit at the end is protected? Thereby putting the potential cost to bring the property up to a re-lettable standard on the tenant over the life of the tenancy.

[Theodolite]

I went to the Government Office of Fair Trading for some advice on behalf of a neighbour. A tenant was refusing to pay his rent for no good reason and had amassed a debt of a couple of thousand pounds.

 

As soon as the guy realised I was speaking on the side of the Landlord he said "I am sorry in that case I must end this conversation now" and just walked off.

 

What a twat, I thought.