Landlords warn that tenant deposit cap ‘will create charter for rent cheats’

Landlords are calling for the six weeks deposit cap in the Draft Tenant Fees Bill to be increased to eight weeks to avoid “rent cheats”.

The Residential Landlords Association (RLA) is warning that the proposed cap risks creating a charter for rent cheats after it found that 40% of private landlords have experienced tenants not paying their final month’s rent in the past three years.

The RLA said the deposit should provide sufficient extra funds to deal with any major problems some tenants leave behind.

It is also warning that the Bill risks becoming a missed opportunity to improve the position of tenants. It is calling for proposals to enable tenants to transfer deposits from one home to another rather than having to raise fresh funds each time they move as they wait for their last deposit to be paid back.

It also wants the tenancy deposit process to be brought into the 21st Century by enabling papers confirming that deposits have been protected to be sent to tenants electronically, which currently cannot happen.

David Smith, policy director for the RLA, said: “Ministers need to address the problem of tenants failing to pay rent every bit as strongly as rogue landlords.

“It is not unreasonable that landlords should have the security to know that funds are available to cover the unacceptable practice of those tenants who do not pay their rent at the end of the tenancy and, in some case, leave the property in an unacceptable state.

“In a quest for quick popularity, the Government’s plans risk becoming a missed opportunity for fundamental reforms to improve tenants’ ability to access rented housing.”

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One Comment

  1. CountryLass

    The only issue with transferring deposits, is that a checkout can’t really be done whilst the tenants are still in the property, and the deposit has to be there for the new one when they sign….

    I think the basic idea is good, and if it could be tweaked then it would be an improvement. I suppose that the deposit could be held in the Tenants name, rather than the property, with their new rental added to it, kind of like a tenant register… And they would need to make sure that the deposit amount was always kept at a certain level (ie £1200), and if they leave a place with £150 of damage, they have to pay that £150 back to the deposit ‘account’?

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