Posts with tag: tenancy deposits

SafeDeposits Scotland celebrates customer service accolade

Published On: September 7, 2020 at 8:32 am

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SafeDeposits Scotland

Recognised for its exceptional levels of service, SafeDeposits Scotland has been awarded an accolade for the work it has done to support landlords, letting agents and tenants.

The Customer Service Excellence Standard (CSE) has chosen SafeDeposits Scotland to receive this accolade, having recognised the tenancy deposit scheme for its focus on consumers’ individual needs, while providing the highest levels of customer service.

The decision was made after a thorough assessment involving analysis of customer insight, the culture of the organisation, and overall quality of service.

The not-for-profit tenancy deposit scheme displayed several key achievements to secure the accreditation. This included displaying an in-depth understanding of the characteristics of both current and potential customer groups, strong interaction within wider communities and demonstrating the support provided, and continually meeting set standards for timeliness and quality of customer service. 

SafeDeposits Scotland
Mike Smith, Operations Manager at SafeDeposits Scotland

Mike Smith, Operations Manager at SafeDeposits Scotland, said: “We always put our landlords, letting agents and tenants at the heart of our service and advocate for our customers on a daily basis. 

“We know that all parties have a lot to deal with in the rental process, particularly at the beginning and end of a tenancy. This is why we provide tools and guidance for customers to make the leasing process as positive as possible for all parties involved.”

During lockdown, SafeDeposits Scotland adapted and adjusted to ensure everyone could easily access its services while following government advice to stay at home. Between the 1st of April and the 30th of June alone, the team answered more than 6,000 customers calls and handled more than 5,000 emails.

The scheme also introduced webinars for landlords and tenants to ensure relevant information could still be accessed during lockdown. 

Mike added: “We’ve encountered some truly unique challenges over the past few months, so being accredited for our customer service as we emerge from the pandemic, is extra special.

“We’ve learned to adjust our services to meet consumer demand, and will continue working to provide all the support needed as we emerge from lockdown.”

Tenancy Deposit Scheme Launches Guide to Help Tenants, Landlords and Agents

Published On: March 27, 2020 at 10:55 am

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Tenancy Deposit Scheme Launches Guide to Help Tenants, Landlords and Agents

The Tenancy Deposit Scheme (TDS) has launched a new FAQ web page designed to help those involved in the private rental sector (PRS) navigate through the COVID-19 pandemic.

The frequently asked questions cover pre-, mid- and post-tenancy provides advice to landlords, tenants and letting agents. It includes information as to whether a deposit can be used to cover the rent shortfall when a tenant is not earning enough to pay the full amount, and whether students that have left their accommodation to go back to family still have to pay rent. 

Steve Harriott, group chief executive at TDS, said: “The coronavirus pandemic is affecting us all and, understandably, we have had many questions from tenants, landlords and agents over the past few days regarding how this could affect tenancy deposit protection.”

The TDS has found that in recent days they have been inundated with questions about rent reductions, and how this affects the deposit cap, which is limited to no more than 5 weeks’ rent in most cases. In response, they set up this web page to ensure that most questions can be answered without involving a member of their team.

They urge customers to visit the website frequently, which will be updated as the government’s advice changes, meaning that some answers may change rapidly. 

Harriott continued: “As we receive further questions and advice from the government, we will do our best to continue providing answers and clarity on legal ramifications and tenancy processes during this period.”

He added: “We would like to stress that we are an impartial organisation and do not believe it is our place to give any advice beyond which is clearly stated by the government or law. It is ultimately up to the parties in the tenancy agreement as to how they wish to proceed in any given situation.  

We hope the information we are providing on this web page provides a helpful foundation, and we wish all our customers and their families the very best of health during these unprecedented times.”
The FAQ page can be found here.

Landlords and Tenants Split over New Insurance-Based Deposit Schemes

Published On: October 30, 2017 at 9:10 am

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Categories: Landlord News,Tenant News

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Both landlords and tenants are split over the effectiveness of new insurance-based deposit schemes, according to recent research by Upad.co.uk.

The letting agent revealed concerns from both landlords and tenants regarding various aspects of these insurance-based deposit options. Specifically, landlords were worried that the insurance would not cover them fully for repairing any damage at the end of the tenancy.

A number of insurance-based deposit schemes have been launched recently, which aim to resolve tenants’ difficulties in raising the cost of a deposit by instead offering a monthly insurance payment.

When questioned over the new alternatives, some tenants felt that, despite sometimes having to borrow money to pay their deposit, they would get their deposit back in the majority of cases. Paying for the insurance, however, would see them making payments that would never be returned.

Nevertheless, tenants overall were more in favour of the insurance-based deposit schemes than landlords were.

Perhaps most alarming is that less than 10% of both groups were even aware that these new options existed.

Landlords and Tenants Split over New Insurance-Based Deposit Schemes

Landlords and Tenants Split over New Insurance-Based Deposit Schemes

When the new insurance-based schemes were put to landlords, they were unconvinced that they would have any real impact, with 57% claiming that they’d never had a tenant struggle to raise a deposit.

Just 35% thought that finding tenants would be easier if they offered this option as an alternative to requesting a deposit. Additionally, only 14% thought that insurance-based deposit schemes were better than taking a deposit.

Although a higher proportion of tenants appeared to support these new schemes, in some cases, those in favour were still in the minority, with 35% thinking that insurance-based deposits are better than taking a deposit.

However, 37% said that they would definitely rather pay a monthly insurance cost than a deposit, while 62% had no concerns about paying a monthly sum, rather than one large deposit.

Portfolio landlord and the Founder and CEO of Upad, James Davis, responds to the findings: “Alternatives to paying one-off deposits are always welcome, and these schemes are a great idea.

“Immediately, tenants will be free of the struggle of having to raise a deposit for a new rental before they have got their existing deposit back, and those who are unable to raise a deposit at all, or have no means of borrowing the money, could find themselves able to rent a far wider range of properties than they previously could.”

He adds: “I am definitely in favour of such schemes, and hope in the coming months a greater proportion of landlords will also take this point of view.”

Do you believe that insurance-based deposit schemes are a better idea for the lettings industry?

Tenancy deposit thefts over £700,000 already in 2017

Published On: July 27, 2017 at 8:48 am

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Interesting new data has revealed that rogue letting agents were convicted of stealing nearly £700,000 worth of tenancy deposits during the opening half of 2017.

The average total for each theft totalled nearly an eye-watering £50,000, according to renting reformer, Ajay Jagota.

Deposit Thefts

Mr Jagota keeps a running total of the overall cash value of deposits that rogue letting agents have been found guilty of stealing. Jagota publishes these figures on a quarterly basis.

At the end of June 2017, overall thefts for 2017 amounted to £673, 273, with an average theft of £48,091 per conviction.

Now, subsequent convictions have taken this overall total close to £750,000.

15 rogue agents have been convicted of offences surrounding the theft of deposits during 2017, at nearly two per month.

Research from deposit-free renting solution Dlighted last year indicates that £1,018,100 worth of deposits were stolen during 2016. Worryingly, 2017’s figures are set to break past this figure.

Stealing

Ajay Jagota, founder of Dlighted, said: ‘Some are arguing that no reform of the deposit system is necessary. But in the current system agents have managed thefts of at least £700,000 in just six months.’

‘Within the next four years, almost £6billion will be held in tenancy deposit schemes, roughly £4billon of which will retained by letting agents and landlords. Not only is this money missing from the UK economy, it is far too easy for it to go missing altogether.’[1]

Tenancy deposit thefts over £700,000 already in 2017

Tenancy deposit thefts over £700,000 already in 2017

Offering a solution, Mr Jagota noted: ‘It’s simple – if renting is deposit free, it isn’t possible for people to steal deposits. Not only does deposit replacement insurance better protect property investor’s assets and offer them compensation for legal fees and lost rent – as well as making it easier to find and keep good tenants – it also prevents crime.’

‘The worst part is the almost £2million which landlords and letting agents have been convicted of stealing, is in my opinion and many of those in the industry,  nowhere near the true scale of money misappropriated from tenancy deposit accounts with an alarming number of operators apparently happy to use money from tenancy accounts for other business purposes.

Much of this money will be put back, but much of it won’t – and the fact money is missing will only ever be uncovered in the event of company collapse or criminal investigation. The legislation the government will be bringing forward to cap deposits is also the ideal opportunity to do something about this scandalous situation,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/tenancy-deposit-thefts-now-top-700000.html

 

RSPCA and Cats Protection Voice Concerns on Tenancy Deposit Cap

Published On: July 7, 2017 at 9:25 am

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RSPCA and Cats Protection Voice Concerns on Tenancy Deposit Cap

RSPCA and Cats Protection Voice Concerns on Tenancy Deposit Cap

Following the announcement in the Queen’s Speech that the new Government will introduce a tenancy deposit cap, landlords have raised concerns over whether it will restrict tenants with pets finding rental properties.

Now, the RSPCA and Cats Protection have also voiced fears that the cap will reduce tenants’ flexibility to provide a higher deposit to cover the likes of pet damage.

The Assistant Director of External Affairs at the RSPCA, David Bowles, says: “We have yet to see this bill and will be looking to work with the Government to ensure there are no unintended consequences for pets within the legislation designed to improve tenancy conditions.

“Pets are part of our families and, as well as being wonderful companions, also bring us many benefits for our health and general wellbeing. We encourage landlords to allow tenants to take pets into homes, as it causes a lot of distress and upset when families aren’t able to take their pet with them, and charities such as the RSPCA are left picking up the pieces.”

He adds: “We have produced booklets for housing agencies and landlords, giving them useful and practical advice.”

Cats Protection’s Advocacy and Government Relations Officer, Madison Rogers, also comments: “As more and more people are living in privately rented accommodation across the UK, some owners are being forced to give up their cats, and others who would like a cat are denied the opportunity. Cats Protection believes that people should not be deprived of having the companionship, love and affection that a cat can bring to a household, and we are currently conducting research to find out the extent of the issue.

“We would also encourage housing providers and landlords to have responsible and reasonable cat policies and tenancy clauses, which could include the requirement for cats in tenanted property to be neutered, microchipped and vaccinated, as well as limits on the number of cats that can be owned per household.”

Would the tenancy deposit cap affect your flexibility in accepting tenants with pets?

Is Deposit-Free Renting on the Horizon? One Campaigner Thinks So

Published On: July 5, 2017 at 9:21 am

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Deposit-free renting could be on the horizon, according to deposit reform campaigner Ajay Jagota, of Dlighted.

Is Deposit-Free Renting on the Horizon? One Campaigner Thinks So

Is Deposit-Free Renting on the Horizon? One Campaigner Thinks So

With almost 5.8m households expected to be living in the private rental sector within four years, the amount of cash sitting in tenancy deposits is set to surge by around 40% – and that’s despite Government plans to cap security deposits to just one month’s rent, as announced in the recent Queen’s Speech.

Jagota believes that with the average UK tenant currently needing £967 for a deposit, around £5.8 billion worth of funds will be held as tenancy deposits by 2021, reflecting predicted growth of around 24% in the number of households renting privately.

Jagota described the figure as “the absolute scandal of wasting money to fill the funding gap on social care on literally nothing”.

The figures, from a survey conducted by Knight Frank, also show that 37% of tenants now rent out of choice rather than necessity, with renters naming the flexibility and fewer responsibilities of renting as primary reasons for not purchasing properties of their own.

The study also found that 68% of tenants still expect to be living in the private rental sector in three years’ time.

Jagota insists: “Tenancy deposits are a blatant economic inefficiency in serious need of Government intervention – an intervention which could save almost six million renters an average of £1,000 by the time of the next election.

“The £3.5 billion already is an eye-watering figure enough, but the £5.8 billion it could rise to within five years is monstrous. With 97% of deposits unnecessary, this is an absolute scandal.”

He believes: “I’m not convinced a deposit cap goes anywhere far enough, but I believe the industry has to accept that this is just the first step.

“I predicted pre-election that tenancy deposit reform is now irrevocably on the agenda and, even just this week, deposit-free renting was proposed in an influential blog by leading property academic Professor Brian Sturgess.

“The tide is turning in favour of deposit-free renting, and those of us who have worked so hard to put reform on the agenda – even when it has not been a very popular attitude in our industry – are entitled to feel a little vindicated.”

Jagota claims: “There are an infinite number of better ways all that money could be spent, and by abolishing outdated tenancy deposit schemes with deposit-free renting and landlord insurance, we can save renters a fortune while giving landlords better protection and boosting our economy, or facilitating generation rent onto the housing ladder via transfer of funds into Help To Buy ISAs.”

Do you agree that deposit-free renting is on the horizon? And is this a good thing?