Should I use a deposit protection system?
In the UK (UK), the law is required by the law for most of the rent initiated after April 6, 2007. The deposit protection scheme is a means by which the landlord and tenant can be ensured that any dispute over the advance will be fairly resolved. The landlord will overturn the deposit to the third party or use the insurer, one of whom will return the lessee at the end of the tenant's occupancy.
Deposit protection scheme could have the above forms. In the first place is a third party, which holds the money in custody until the lease tenant is completed. The second option is for the landlord to pay premiums for the protection of lease deposits. In the first case, the deposit protection service invests funds and maintains part of the return as a compensation for its efforts.
The application of what is known as a secured short -term rent. This is a standard form of rental agreement inGreat Britain and is similar to residential lease in the US. Deposit protection systems have been introduced to ensure that landlords and leasing agents treat tenants fairly and to provide funds for arbitration if there is a dispute as to whether the lessee could get the deposit back. The reasons for the deduction of the deposit include the reasons, the inability to announce, the inability to release or return the keys after evicting and damage beyond the appropriate wear and tear and tear of the lease.
There are some exceptions to the law, including the presence of a resident landlord, which is used as a holiday or secondary home, an annual rent exceeding £ 100,000 pounds (GBP) or a tenant who is a business or business entity. For rent from April 2007, a leasing agent or landlord is not obliged to use a deposit protection system, but it is encouraged to do so after the renewal of the lease. The landlord has 14 days from receiving the deposit to choose the serviceThe wounds of deposits and informed the tenant.
Thesurvey conducted by the leading service of deposits in 2008 revealed that 62 percent of the landlords openly admitted that it did not use the deposit protection system, despite the statutory requirement. According to the law, the landlords face the loss of their rights to evict and a fine equal to three times the amount of deposit. Tenants should be aware that their deposits may be endangered unless they are protected by the right or insurance service.