Residential Landlords: Good Buy to Let?

Contents

1. Introduction
2. EPCs - just more legislation?
3. Tenancy Deposit Schemes - protecting the investment?
4. And don't forget...

Tenancy Deposit Schemes - protecting the investment?

Another piece of recent legislation that has an important bearing on landlord-tenant relations is the introduction of tenancy deposit schemes - the aim of which is to ensure that landlords cannot unfairly withhold the deposit at the end of a tenancy.

Three schemes have Government approval: a free custodial system that is paid for by the interest earned on the money it holds, and two insurance-based schemes.

While each of the schemes offers a free dispute resolution service, Jeremy Head is concerned that this legislation is replacing the traditional trust which is built up between landlord and tenant.

"I'm a big believer in getting to know tenants, being able to look them in the eye and developing a relationship, so I respect them and they respect my property," he says.

"There is this desire to legislate between people in the middle of their relationship.

"Doing business the old fashioned way is best - but it seems we've forgotten that and it's all about the small print."

Manny Pisani also questions the protection that the schemes offer to the tenant.

"It has been brought in because of the small minority of landlords who decide to take the deposit for the slightest offence", he says.

"But the problem is those unscrupulous landlords will take an inventory at the start of the contract, then just make it up as they go along."

However the NLA highlights the benefit for tenants.

Steven Hilton says: "In the past there has been no way of finding the landlord if he disappeared with the deposit - now there is a way of pursuing him through the courts."

"You can't expect landlords to welcome another expense, but I think in a few years they will get used to it - it's not a big burden and will just be seen as being part and parcel of being a landlord."