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Question

Deposits and Tenancy Deposit Schemes (England)

deposit by recognised body

13 Mar 2018 | 1 comment

After having been let down by the DPS I stopped taking deposits and only take tenants with guarantors on your advice. A prospective tenant is ex military and says the British Legion will stand a deposit for him. What is your view on this? He has a guarantor also so do I need the deposit? Thanks

Answer

1 Comment

  1. guildy

    If the Legion pay a monetary deposit, it will need protecting in the usual way. They would be named as a “relevant person” on the prescribed information.

    If however, they are giving a paper deposit that can be claimed on should a default occur, then you would carry on using the no deposit agreement. Such a bond is more akin to a guarantor but to a specified amount.

    If you have got a guarantor (which we normally suggest should be a homeowner), you don’t have to take a deposit. With our own personal properties, we don’t take deposits at all and just rely on the guarantor should there be a default. However, we do take an admin fee at the moment so this policy may have to be thought about again when tenant fees are banned. We may go back to deposits from then.

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