I read a recent report concerning a company director in London, a lettings agent, who failed to properly register deposits in accordance with current legislation. Also, he used the monies for something other than their intended purpose. Subsequently he has been banned from owning a business or being a company director for a few years.
But the question you ought to be asking yourself, and this applys to both landlords and tenants, is – who will be responsible for refunding the depsosits that have gone missing? The answer is obviously the agent, but what if he is not in a financial position to, (he is now bankrupt) what then?
This is a serious consideration if you’re a landlord and the deposit is registered with your agent. How safe is it? Do you know what scheme they register it in? Did you know they are legally obliged to register it in a scheme?
Belvoir Stortford register deposits with Safeagent. Furthermore we are members of the Property Ombudsman Scheme and subscribe to Safe Agent too. Also, we are regularly audited by Belvoir Central Office in accordance with the agreement signed when taking on the business.
You can be assured that we act in the best interests of our landlords and tenants. All deposits are registered in accordance with current legislation and correct documentation issued from outset and renewal.
If you are a landlord with one or more properties, it really is in your interest to check with your current agent and ensure the deposit is accounted for.