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Landlords call on Government to revolutionise tenancy deposit system
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Original Source: Property Eye.
Original Author: Marc Shoffman.
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The Residential Landlords Association is calling for the creation of a new insurance-based scheme that would allow tenants to transfer deposits between properties.
The membership body is urging the Government to work with the industry to develop such a scheme on the basis that it would help both the landlord and tenant.
Under the proposal, a tenant would be able to top up or claim some of the deposit back, depending on the level of the deposit required on their next rental home, while a landlord would have assurances that a deposit would be available in full if the tenant could not top it up between tenancies.
The RLA said: “One of the biggest upfront costs that tenants face is the deposit. This is exacerbated by a system that means when a tenant moves to a new rental property they need to raise funds for a fresh deposit before being repaid the deposit for their last property.
“The existing Alternative Dispute Resolution mechanisms which deal effectively with deposit disputes would be maintained under this system.
“Implementation of such as scheme would require new primary legislation which could be included in the draft Tenants’ Fees Bill. It would need a new set of contracts with deposit schemes which would in turn mean running a new tender process.”
http://www.propertyindustryeye.com/let-tenants-transfer-deposits-between-properties-rla/
