🙋 Landlord’s Question:
I’m a Landlord in Tamworth and have just started using the DPS custodial scheme for my deposits. I find it all utterly confusing, even the website, I’m thinking that perhaps I should stop taking a deposit and save myself this hassle. What are your thoughts?
Should I take a deposit?
You may be a frustrated Landlord now, but I honestly think that if you didn’t take a deposit you would be eventually become a very unhappy Landlord and would be kicking yourself. Not taking a deposit whatsoever is sheer madness.
You hear about properties being converted into cannabis houses or tenants ripping everything out of the property. Yes, your deposit wouldn’t cover the thousands of pounds it would take to put the property back in tenable condition, however it would go some way of helping your pain and frustration.
What if you are trying to evict a tenant and the rent isn’t being paid, it can take up to 6 months to evict them and the cost escalates when courts are involved. Locksmiths don’t come cheap, I recently paid £70 per lock, so £140 later!!
You can always take out Landlords insurance, however this does affect your yield and you may not think it’s worth paying out the extra money. If you are a member of a trade body i.e. National Landlords Association you may get a discount.
So my advice before turning the keys over, take a deposit and take at least 1.5 x the monthly rent, more if possible and for goodness sake, ensure you deal with the deposit correctly.
Until next time.