I have two properties, one in Tamworth and the other in Hinckley. The local one has always been managed by a letting agent and the Hinckley property, I manage myself due to a friend renting the flat.
I decided some time ago to take over the management myself and duly gave 3 months notice to the letting company that I wished to do so. At that time I also informed them that I would like to hold the deposit and put it into my own scheme.
This seemed fine at the time and they confirmed in email, their agreement to this, getting my tenant’s agreement that the deposit could be held in my scheme.
I received the last month’s rent from the letting agent yesterday, but no deposit monies. I have telephoned them to ask where it is and they say they will not release the money to me until I have registered the deposit with my own scheme and given them proof that I have done this.
Can anybody advise me whether this is right?
The letting agent is responsible to the tenant for the deposit and as you are breaking all ties with the agent, I can understand they are unwilling to release the deposit directly to you without a guarantee that it will be protected.
Register the deposit with your scheme and send the agent the details, they will then transfer the deposit into your account.
Until next week.