So, who is really responsible for securing the Tenant’s deposit into the deposit protection scheme? Is it the responsibility of the Landlord or the letting agent? The answer should really depend on whether the Landlord trusts the letting agent. Of course, it should be taken into consideration if the Landlord is using a letting agent. In case there is no letting agent involved the responsibility of protecting the deposit automatically falls into the Landlord’s hands.
Making Sure that the Deposit is Secured
Do you trust your letting agent? Are you certain that they are doing what they are supposed to be doing? Do you think that your agent is securing the deposits into the lawful tenancy deposit protections scheme?
Do you know what will happen in case your letting agent fails to secure the deposit? Do you have any idea that you could be involved in a heated argument once your Tenant has discovered that their deposit is not properly protected?
If you, as the landlord, has no common sense to make sure or check that your tenant’s deposit has been properly secured, then you have failed to do your job. It does not matter if the letting agent was bad enough to ignore securing the deposit. In the end, it is your fault as a landlord that the deposit has not been secured.
So, basically, whether you use a letting agent or not, failure to secure the deposit means big trouble for you. How do you avoid that bad result? By being smart enough to check the contract between you and the letting agent.
If the contract states that the letting agent is not tasked to protect the Tenant’s deposit, then you have full responsibility to secure the deposit. This means that the letting agent should pass the deposit over to you so that you can secure it within the allowed 30 days after they received it from the Tenants. You have to understand that it is your responsibility to make sure that the agent passes the deposit to you.
If in case the contract between you and the letting agent specifies that the letting agent has full responsibility of securing the Tenant’s deposit, then all liabilities fall into the hands of the agent if they fail to protect the deposit.
If you suspect that your agent failed to secure the deposit, then you must act fast. Your Tenant could pursue you and then you will have to face complaints. Of course, you should also pursue your letting agent.
It is always better to avoid getting into those complicated complaints and cases. The best way to do that is to be vigilant with your transactions. Always check with your letting agent so that you know if the deposit has been secured.
You have the responsibility to protect that deposit even if the task is supposed to be done by the letting agent. You answer to your Tenant and your letting agent answer to you. Do not let anything to go wrong, or else you will be facing a case while pursuing your letting agent.
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