Training webinars with Landlord Accreditation Scotland (LAS)

Training is an important part of managing properties and tenancies successfully. Landlord Accreditation Scotland are running webinars, sponsored by LPS Scotland, covering the key areas of Tenancy Management and Creating Inventories. Whether you’ve been in the industry 20 years or you’re managing your first tenancy, the webinars are suitable for all landlords and letting agents.

The Tenancy Management training will cover topics such as how best to communicate with tenants, the procedures to go through before starting a tenancy and how to administer your tenancy deposit. As well as important subjects such as equality, complaints and disputes, and how to deal with anti-social behaviour.

The webinar on Creating Inventories covers the information you need to avoid deposit disputes at the end of a tenancy. You’ll be guided through check-in and check-out reports, routine visits and inspections, as well as providing you with a framework for preparation of a inventory document and advice on how to use it at your final inspection.

The webinars take place throughout the year so keep an eye on forthcoming dates here.

Dispute Resolution: What's involved and how long does it take?

No one likes to find themselves facing a deposit dispute. Often the fastest way to resolve a dispute is to talk to your tenants and come to a fair and reasonable agreement on how the deposit should be split between you.

In some instances, despite your best efforts, you may reach a stalemate. If you find yourself in this situation, our Dispute Resolution Service is there to help you. Disputes can take a lot longer to resolve than finding an agreement directly with your tenant, and to help you understand why dispute resolution takes the time it does, we’ve laid out all the steps in our handy infographic timeline. Users of the service do need to be aware that disputes often last for the full duration below, though it’s worth bearing in mind that our adjudicators do resolve many disputes more quickly than this.

Day 1 Your claim formally enters dispute. We email instructions to you and your tenants to collate and submit evidence. Both parties have 14 calendar days from the date of this email to submit their evidence. We won’t request specific items of evidence so make sure you submit everything relevant to your claim.
Working day 10 All evidence from you and your tenants must be submitted by this date.
Working day 11 Our disputes team needs up to 5 working days to carry out the pre-adjudication assessment of all evidence. If they identify a problem with the evidence, they may contact you or your tenants for clarification, which can delay us in sending the dispute to an adjudicator.
Working day 16 The dispute is sent to an adjudicator who then has up to 20 working days to review all the evidence submitted against the claim and reach a decision on how the deposit will be repaid. Adjudicators can reach a decision more quickly but often need the full 20 days.
Working day 36 The adjudicator reaches their decision and communicates the result to us.
Working day 38  Our disputes team sends details of the adjudicator’s decision to you and your tenants. Payments are processed ten days after delivery of the decision to allow any party time to request a review of that decision should they feel it has failed to consider all of the facts presented. 5 working days should then be allowed to receive the funds following release by The LPSS.

In some circumstances, as mentioned above, these timings could be extended. Most often this occurs when a query arises regarding the evidence or the claim itself, either during the pre-adjudication assessment or the main adjudication.

Here to help you

Our free dispute resolution service is here to help you and your tenants reach a fair and reasonable outcome in the case of a deposit dispute. That’s why we’ve created helpful guides for the dispute resolution process. To help you increase your chances of a successful claim, make sure you follow our essential guide to dispute resolution.

Develop your skills with training webinars sponsored by LPS Scotland

Training is an important part of managing properties and tenancies successfully. Landlord Accreditation Scotland are running webinars, sponsored by LPS Scotland, covering the key areas of Tenancy Management and Creating Inventories. Whether you’ve been in the industry 20 years or you’re managing your first tenancy, the webinars are suitable for all landlords and letting agents.

The Tenancy Management training will cover topics such as how best to communicate with tenants, the procedures to go through before starting a tenancy and how to administer your tenancy deposit. As well as important subjects such as equality, complaints and disputes, and how to deal with anti-social behaviour.

The webinar on Creating Inventories will take place on 1 June, 2022, 2.00pm - 3.15pm and covers the information you need to avoid deposit disputes at the end of a tenancy. You’ll be guided through check-in and check-out reports, routine visits and inspections, as well as providing you with a framework for preparation of a inventory document and advice on how to use it at your final inspection.

The webinars take place throughout the year so keep an eye on forthcoming dates here. The next webinar is Creating Inventories on June 1, 2022, 2.00 pm – 3.15 pm.

Springtime – a great time for mid-tenancy inspections

With winter gone and spring now in full bloom, there’s no better time to inspect your property to check for damage or wear caused by seasonal weather conditions and assess if any repairs are required.

Maintaining your property can help you avoid bigger repair costs further down the line. It’s also a great opportunity for you to check the property against the check-in report and note any differences that may need addressing. Though your tenants may have alerted you to any major issues that arose over the winter months, they may not have noticed less prominent problems that may be of concern to you.

Outside your property

Winter can be hard on the outside of a property. Frosts, high winds, and heavy rain can all take their toll. Here are a few things to look out for, as a quick repair or touch-up now, could save you money in the long run.

  • Check the roof for cracked or missing tiles

  • Check the condition of any woodwork to make sure there’s no rot

  • Keep an eye out for any worn or peeling paint.

It’s also a good time to review the condition of the garden. Responsibility for garden maintenance is subject to what’s laid out in the Tenancy Agreement, but whether you or your tenants are responsible, it’s still worth making sure that boundary fences and walls are still solid. It’s likely the garden will be ready for a bit of TLC as new life springs up, so if your tenants are responsible for maintaining the garden area, the inspection is a good opportunity to remind them of their responsibilities and to flag any concerns you identify.

Inside your property

Take a look around the property for any signs of damp such as black mould. The bathroom and kitchen are the most likely areas for problems to appear and windows, particularly single glazed ones, are prone to moisture build up due to condensation.

Some damp issues may arise as a result of tenant activity such as in the bathroom or kitchen. It’s also a good idea to keep an eye out for damp in rooms where you wouldn’t usually expect it, as this could be an indicator of a bigger problem that needs addressing.

The inspection is also a good time to check the condition of the rest of the property and any furnishings against the original check-in report and inventory. If you spot an issue now, raise it with your tenants. If it turns out to be something caused by their actions, it will give them the opportunity to rectify it now rather than it becoming a problem at the end of the tenancy.

After the inspection

It’s important that you keep a record of the inspection as this can help you to avoid disputes later on. When you compare against the check-in report, note any changes, sticking to facts about condition rather than conjecture about cause. Gather evidence such as photos, emails, or receipts for any work completed. It’s also important to share your notes with your tenants and give them the opportunity to give feedback on your findings. Keep any email or text discussions with your tenants as these could serve as vital evidence in the event of a dispute.

Mid-term property inspections help you and your tenants keep the tenancy on track and avoid disputes when they eventually move out of the property. Our website has lots of helpful information on how to gather and record evidence that can support your claim in a dispute, or even help you avoid one altogether.

Four pillars of a successful tenancy

Cultivating a good relationship with your tenants from the start is one of the key foundations underpinning a great tenancy. Happy tenants are more likely to stay at the property, reducing vacant periods and the costs associated with finding new tenants, making your investment more profitable.

The best deposit disputes are the ones that don’t happen! A great landlord-tenant relationship can also help you avoid the time-consuming frustration of dispute resolution. Landlords who maintain good communication and rapport with their tenants are much more likely to find their tenants will agree to fair deposit claims at the end of the tenancy, and avoid deposit disputes.

What underpins a successful tenancy?

We’ve applied what we’ve learned in our years of protecting tenancy deposits and resolving disputes to create a blueprint for constructing a solid tenancy. Follow these four pillars to build a great landlord-tenant relationship.

1. Advise

Sharing clear helpful information with your tenants can help avoid issues and minimise the impact of problems that arise.

› Highlight key terms and obligations in their contract so their responsibilities for maintaining the property throughout the tenancy are clear.

› Advise them to get in touch ASAP in the event of any problems and make sure they know who to contact and how.

› Make sure you give them the Prescribed Information, and provide them with a copy of the inventory that you agreed with them at the check-in.

› Give them a copy of our guide for tenants to help pre-empt any questions they may have about their tenancy deposit.

2. Record

Keeping detailed records of the tenancy gives you and your tenants the evidence to help you agree on how the deposit should be repaid at the end of the tenancy.

› Complete the check-in report and inventory in the company of the tenant if possible. Together you can note the condition of all furnishings, fixtures, décor and the property itself. Be consistent and descriptive when recording each room and the condition and age of contents, and be sure to mention if an item is brand new. Take date stamped photos and video.

› Mid-term inspections are an opportunity to check the current state of the property, both against the inventory and for repairs due to natural wear and tear. If you identify any changes, make sure you record them.

› Unexpected event such as damage to the property or a broken item? Keep a record of any communication, including emails, texts and letters. Share a written or email summary of the situation and resolution with the tenant, and keep copies of all related bills, invoices and other documents.

3. Collaborate

Landlords and tenants working together are more likely to have a harmonious relationship, which can ease into a smooth end to the tenancy when the time comes.

› Invite tenants to the check-in and check-out to discuss and agree on any discrepancies.

› Discuss repairs or improvements with your tenants at the mid-tenancy review and ask if there are any issues. They live in the flat day-to-day and can help ensure your property is well maintained, and your investment is protected.

› When living in a property, normal wear and tear is expected. Work together at the end of the tenancy to determine what is reasonable and acceptable to all for any claims.

› If you have a change of one or more tenants during the tenancy, review and update the original check-in report with the tenants. Those staying in the property and tenants transferring in won’t want to be responsible for any claims arising from the outgoing tenants actions.

4. Hear

All the best relationships are based on great communication, just ask any marriage guidance counsellor. But communication isn’t just talking, it requires listening skills too.

› Listen to any concerns your tenant raises, hearing what they have to say, and acknowledging their point of view. Dialogue requires two people talking and listening, and you may hear something that’s to your benefit.

› Answer any concerns in a reasoned and fair way that shows you’ve listened to what they’ve told you, even if you disagree with their position. A reasoned response is more likely to be accepted than casual dismissal.

We hope our four pillars can help you build an open and honest relationship with your tenant, which in turn should mean no surprises and a smooth end to the tenancy.

Download our simple infographic for a handy reminder of the four pillars of a successful tenancy.

Are you open to lets with pets?

The Dogs Trust campaign ‘lets with pets’ states: “Landlords and letting agencies who exclude pet owners from their properties are missing out on a large share of the rental market, as almost half of households in the UK currently own a pet.

Christmas is traditionally a time of year when many people choose to get a pet for themselves or their family, but if one of your tenants asks for permission to keep a pet in the property, do you know how you’ll react?

The benefits of permitting pets

Allowing pets in your property may seem like a risk but permitting tenants to keep a pet can set you apart from other landlords. It may improve your relationship with your current tenants, and even add a premium to the rental value you can achieve.

According to The Dogs Trust, over half of all households owns a pet. This means by excluding pets, you’re missing out on a huge part of the rental market. Allowing pets can increase the demand for your property, and attract responsible tenants looking for a long term let.

  • Tenants may stay longer

Once a tenant finds the holy grail of a tenancy that allows a four-legged friend, they are far less likely to leave it.

  • Rents can be more profitable

If it means they can have a pet, many tenants will be willing to increase the rent by a small amount to account for additional wear and tear.

  • Pet owners can be more responsible

For most people, a pet is like a member of the family and they take their ownership very seriously. To have a pet you need commitment, a regular income and a responsible nature – all things you would list when you think about a desirable tenant.

It’s also good for your tenants’ wellbeing and happiness. Having a pet can help them increase exercise, provide companionship, and reduce anxiety levels.

If you’re concerned a pet in the property might unleash potential problems, we’re here to help you with some practical points to help make your lets with pets a success.

1. Know the law

If your property is leasehold, you'll need to ask other leaseholders if they're ok with pets. Check to see if this is the case. Even if you want to accommodate your tenant’s wishes, you might not be able to. However, if your tenant needs an assistance dog, you must allow them to live in the property.

2. Double check your insurance

Ask your current insurance provider if your policy covers accidental pet damage. Landlord insurance doesn’t usually have this feature as standard. You might need a different type of policy to make sure you're covered.

3. Get your terms down in writing

Make sure your boundaries are set out in writing. Whether you don’t want any animals bred in the property, or you only want the pet you agreed to and no more. Make these clear, concise and share them with your tenant on a document you can both sign and keep.

4. Ask for a pet reference if possible

If your tenant is moving from one house to another, it could be a good idea to ask them to provide a reference from the previous landlord. If the animal was well behaved and didn’t cause damage at a previous property, it’s extremely unlikely they will cause any in yours. If they haven’t lived anywhere with the animal before, you could ask the tenant to provide a reference from the vet, ensuring the animal isn’t aggressive and has all its vaccinations and flea treatments etc.

If you want to check for yourself, you could meet the tenant with their pet before you agree to them moving in as part of the pre-tenancy referencing.

5. Arrange regular inspections

As long as they are pre-agreed and everyone is present, more regular inspections can give both you and your tenant peace of mind that the property is still in good condition. It means that any issues can be flagged before the end of the tenancy. It also reduces the chance of disputes as communication will be more regular.

If you do agree to your tenant having a puppy, the Kennel Club has some great advice. Their campaign #bepuppywise gives great advice, from how to buy a puppy to how to train a pet.

Amendments to Scottish Regulations

First introduced on 7 March 2011, the Scottish Tenancy Deposit Schemes Regulations state that all landlords and letting agents in receipt of tenancy deposits must transfer the deposit to a government approved tenancy deposit protection (TDP) scheme within 30 working days of the tenancy start date. They also need to provide all tenants on the tenancy agreement with certain information, including which scheme holds the deposit and circumstances where any of the deposit might be kept at the end of the tenancy.

On 11 November 2019, several amendments to the original regulations were introduced. To help you stay fully informed, we’ve outlined the main amendments below. You can find the fully updated regulations here.

1) Exception introduced to landlord’s requirements to pay a deposit into a TDP scheme within 30 days:

Landlords have to pay deposits into a TDP scheme within 30 days but the latest amendments outline an exception; if a tenancy is terminated and the deposit returned to the tenant before the end of the 30-day period, the rule no longer applies.

2) Provision added to allow payment of deposits in instalments

Sometimes, landlords may want to allow tenants to pay the deposit for the tenancy in instalments rather than all at once. This can can be helpful in shared tenancies, for instance, where tenants have different move-in dates. Although this flexibility is now outlined in the regulations, it has been something we’ve allowed our clients to do for many years.

3) Tenancy Deposit Schemes must inform tenants of the sanctions that apply to landlords who haven’t paid a deposit into the scheme within the designated period

The scheme holding the deposit must now tell tenants about the sanctions that can be placed on landlords who may not have complied with the outlined requirements. We’ve therefore added a new information box to our deposit submission notifications, incremental deposit payment notifications, deposit repayment notifications and deposit repayment reminder notifications. Here’s what the information says:

4) Landlords must provide certain additional information to tenants upon receipt of each instalment of their deposit

From now on, when payment of each deposit instalment is made to a TDP scheme, landlords have to provide tenants with the information below, updated to reflect the fact that tenants can pay their deposits in instalments

Cuppa Catch-Up with… Sam Collings

We saw Sam, our Business Development Manager, enjoying the June Summer sun so we took the opportunity to ask him a few quick questions. Here’s what he had to say…

What's your background and what do you currently do in your role?

I have done many interesting and varied roles in the past, all within Financial Services, ranging from mortgage underwriting to agricultural asset finance. My current role within LPS Scotland is to help support our clients and develop our overall business. 

This comes at a very interesting time, with so many changes in the industry here in Scotland. I’m really keen to understand from our existing clients and industry bodies on how we can best support agents, landlords and tenants.

What’s the most interesting role you have done in the past?

Undoubtedly agriculture asset finance, such a varied industry with lots of characters and stories! Interestingly at that time, it was very similar to the Private Rented Sector with lots of change mainly driven by EU laws and regulations.

If you had one piece of advice for landlords, agents and tenants, what would it be?

Keep up with the changes in regulation. With so much change happening in the future it’s essential all landlords, agents and tenants understand their changing responsibilities and embrace the change.

What are you most proud of?

Completing the Edinburgh “full” marathon. After 20 years of enjoyment doing no exercise, I thought I would join a gym in 2009 and 12 months later, decided that it would be a good idea to do a marathon. Never again! Although I did enjoy the last 100 metres.

Where would your home be, if it could be anywhere?

That’s a great question. I’ve been to so many places in the past it would be really difficult to pinpoint one location, however the essential criteria would be next to the sea and on a golf course!

Our top ten inventory tips

Do you know the value of a clear and detailed inventory?

In a deposit dispute, the inventory can be the deciding factor. What's more, it can often prevent a dispute from happening in the first place.

Despite this, we know from our conversations with landlords and letting agents that many of you lack confidence when it comes to inventories and struggle to make yours suitably thorough.

So to help you, our expert adjudicators have pulled together their top 10 inventory tips. Take a look at them and see if your inventories match our adjudicators' advice. It could make a real difference.

Working with the Scottish Association of Landlords

This year we’ve had the pleasure of sponsoring and exhibiting at two of the biggest annual events in the Scottish Association of Landlords (SAL) calendar, April’s The Agency Business conference and the forthcoming National Landlord Day. As the body which represents the interests of all landlords and letting agents throughout Scotland, SAL is a key influence in the industry, and we are very pleased to support these key events.

The Agency Business Conference

Now in its fourth year, the Agency Business conference, held at Hampden Park in Glasgow, was bigger and better than ever.

We were very proud to sponsor this valuable event which brings together letting agents and other industry professionals from across Scotland to share ideas, experiences and good practice, and discuss developments in the industry. Predictably, the expected changes to legislation and regulation as a result of the passing of the Housing (Scotland) Act 2014 were the main talking point at this year’s event. 

The conference provided a great opportunity for us to catch up with our existing clients to find out their thoughts on industry news and what else we could be doing to support them. In addition, we really enjoyed meeting some agents who we hadn’t worked with prior to the event and talking to them about their needs and how we could help them with their deposit protection responsibilities. 

If you missed the conference, you can always catch up on some of the highlights of the day by watching SAL’s video, including our Head of Tenancy Deposit Protection, Daren, explaining why the Agency Business conference is so valuable to us. 

National Landlord Day

We’re now looking forward to National Landlord Day, the SAL’s major annual conference and exhibition, on 3 November this year. It’s the UK’s largest annual private sector housing conference and we’re delighted to be co-sponsors. Landlords and letting agents will gather at Edinburgh’s Dynamic Earth to discuss developments in the sector, seek advice from experts and enjoy a great programme of high profile speakers. 

We’ll be at stand 19 - do come and see us. You can test your dispute resolution skills with our ‘Be the adjudicator’ case study, enter our prize draw, or just have a chat about our service and what’s happening in the sector. We’re looking forward to meeting you there! To find out more, and book your place, please visit the SAL website.  

We look forward to collaborating with SAL on more projects in the future to help landlords and letting agents in Scotland with the best support possible.

 

 

 

Landlords: Which of these expensive mistakes do you make?

Our workshops try to make it none!

 

Sometimes landlords deserve the deposit from a property, or a share of it. But when the new deposit protection laws came in, claiming it became a more formal process to make sure unscrupulous landlords weren’t just pocketing cash that legally belongs to their tenant.

Any new process  takes a little getting used to. That’s why our senior team will be touring Scotland in March, conducting FREE workshops on how best to claim any money you believe you’re owed.

Deciding exactly how much should be awarded when the facts are disputed is the responsibility of our legally-trained Alternative Dispute Resolution team. They successfully work their way through over 6,000 cases each year.

Our chief adjudicator, Alex Coghlan-Forbes, will be at the seminars explaining the simple ways to avoid footing the bill when you shouldn’t have to.

The seminars are helpful, and free. To register your interest click here.

In the meantime – to help out – here’s our quick list of common landlord mistakes:

#1 No tenancy agreement.  The deposit claim is based on the contract between the parties.  There is no “standard” tenancy contract, so the first thing the adjudicator has to look at is what was agreed.  If the adjudicator can’t see what the tenant agreed to, how can they say it was a breach of an agreement?

Top Tip: Get it in writing.

#2 No/insufficient check in evidence.  Has your antique cabinet lost a leg since you saw it last? If it was checked by an independent inventory clerk at the start of the tenancy we’re in a much better position to support your claim.

 Top Tip: Have an independent inventory taken.

 #3 Check out evidence not gathered quickly enough. We see check-out reports compiled over a month after the end of the tenancy.  Landlords then complain the property was “dusty” or the garden “overgrown”.  Is that surprising?

 Top Tip: With check-outs it’s the sooner the better.

 #4 Work starting work before check-out evidence gathered.  This can cast doubt as to whether any damage was present when the tenant left, or whether the contractor may have caused the issue.

 Top Tip: Get evidence before it’s destroyed.

 Interested in coming to one of our FREE seminars? Click here.

Deposit disputed... Who decides?

THERE once was a landlady who – to prove her former tenants had left a wooden floor in a filthy state – took off her shoes and dared to walk across it. How do we know?

We were sent the “before” and “after” pictures of the soles of her feet.

Now that deposits must be protected, what do you do if a tenancy comes to an end but you and the tenant/landlord cannot agree how it should be distributed?

Not everyone applies such imaginative evidence gathering as the landlady who removed her shoes. But she did prove a point:

Where there is a dispute, evidence is king.

Before the Tenancy Deposit Schemes (Scotland) Regulations came into force the only route for warring landlord and tenant was a court of law.

Part of the reason for the new regulations was to create an Alternative Dispute Resolution (ADR) service, free of charge for tenants and landlords. The ADR service provides impartial, qualified adjudicators who will examine evidence from both sides and decide how the deposit should be divided.

Being free and completely independent means they’re not biased towards landlords or tenants. The only thing they’re interested in is evidence.

Fair, independent and impartial

If you feel you may need to use the ADR service then you’ll find our Guide to Tenancy Deposits, Disputes and Damages helpful as a useful starting point.

Meanwhile, here are the five key things to remember if you do use the service:

  • Both sides will have their say.
  • The deposit belongs to the tenant. The landlord must prove a legitimate claim on the money.
  • The ADR adjudicator is only interested in evidence. If a claim is made without evidence it is likely the claim will fail.
  • The importance of a properly completed inventory (preferably independent) cannot be underestimated.
  • In using the service, both sides agree to be bound by the decision.

No one wants disagreements over deposits. However, it’s inevitable that they will happen and when they do occur it’s very often because landlords and tenants haven’t spoken for a while; so it might be a good idea to pick up the phone or start tapping out an email before it gets to that point.

But it’s good to know – if dispute is unavoidable – that a free, legal alternative to court proceedings is there for you.

If you have any questions on our ADR service our FAQ page might have the answers for you.

We’ll also be rolling out a series of ADR workshops across Scotland, so please keep an eye on the website for more details.

By the way, if you want to see the foot look below!

Merry Christmas from The LPS Scotland!

It’s impossible to miss that Christmas is just around the corner. However, as you know you can never fully switch off from your responsibilities as a landlord, whether that’s making sure your property is kept in good condition over the festive period, completing deposit disputes or even taking on new tenants. There are a couple of things you can do to make sure your properties are in order, ensuring the safety of your tenants and hopefully a stress-free Christmas for you.

Are your tenants leaving the property over Christmas?

Our adjudication team receives a lot of claims following severe winter weather. The majority are usually the result of burst or frozen pipes at houses where tenants had left the property to spend Christmas with their family elsewhere.

To avoid the stress and expense this can cause, contact your tenants to see if they’re going away for the festive season, to ensure that the proper measures are taken to avoid this kind of damage.

Be aware of evidence submission deadlines

If you’ve currently got a deposit in dispute then don’t forget to stick to your evidence submission deadlines. The LPS Scotland is not extending any deadlines but is making allowances for bank holidays so if you’re concerned about a deadline then get in touch so we can see what we can do for you.

Our Christmas opening hours

If you’re taking on new tenants over Christmas or the New Year you can submit deposits at any time online. If you need assistance our contact centre opening hours are:

Monday 24th – 8:30am – 4:00pm

Tuesday 25th – CLOSED 

Wednesday 26th – CLOSED 

Thursday 27th – 8:30am – 5:30pm

Friday 28th – 8:30am – 5:30pm

Monday 31st – 8:30am – 4:00pm

Tuesday 1st – CLOSED

You can also get in touch via online form or visit our FAQ page.

Finally, a very merry Christmas to you from everyone at The LPS Scotland!

So you’ve protected your tenant’s deposit – what next?

We’re pleased to have seen so many landlords and letting agents protecting their tenant’s deposits in line with the legislation. If you've recently protected your tenant’s deposit, here are some of the key things to consider next: 1)    The Tenancy Deposit Schemes (Scotland) Regulations require certain information to be provided to the tenant within 30 working days of the start of the tenancy. To make this simple, we have developed an Information Template which you can download, fill in and pass to the tenant. Once filled in, this template contains all of the information you need to give the tenant to comply with this part of the legislation.

2)    When the time comes for the tenant to leave the property either you or the tenant can initiate the deposit repayment process. If you wish to start the process simply visit our website and log into your account, selecting ‘Request a Repayment’. The onscreen guidance will take you through the process and the tenant will be notified by us that they need to respond to the claim.

3)    Repayment IDs are given to you and the tenant when a deposit submission payment has cleared and both repayment IDs must be provided when a deposit repayment request is submitted. Remember to keep your repayment ID safe – it’s unique to you like a PIN number and shouldn’t be shared with your tenant as they will have their own. The repayment ID grants authorisation from both parties to repay the deposit, so make sure you keep it confidential.

4)    If you and the tenant cannot agree on the amount of deposit to be repaid, then you will have the option to use our free Alternative Dispute Resolution (ADR) service. Using this service will provide both you and the tenant the opportunity to submit evidence to back up your claim to our independent adjudicators. They will then make a decision based on this evidence how much deposit should be repaid to each party. You can read more about this service here.

More information about the deposit repayment process can be found in our FAQ pages

Deadline day

If you’re a landlord, it is your responsibility to ensure your tenant’s deposit is protected in a government approved scheme. The Tenancy Deposit Schemes (Scotland) Regulations state that any deposit received before the 2nd October 2012 (but on or after the 7th March 2011) must be protected by the 13th November 2012.

If you use a letting agent to help manage your properties, make sure you check that they are complying with the regulations and protecting the deposits. If a deposit is not protected the tenant can apply to the courts for up to three times the deposit amount – so it’s important to make sure this deadline is met!

If you are unsure when your tenant’s deposit needs to be protected, you can use our compliance calculator which will work it out for you.

If you would like to speak to someone about deposit protection and the effect of the regulations, our Regional Manager Anthony Cox is available to discuss the regulations, your responsibilities and our scheme. For more information, take a look at our website and FAQ pages.

Anthony’s tour de Scotland part 2

In part 2 of Anthony’s blog, he runs through some of the common questions asked during our free drop in sessions: For anyone that wasn’t able to visit us during one of our free drop in sessions, we thought it would be useful to list the answers to some of the most common questions we are asked. If you have any questions that aren’t answered here or you just want to find out more about us or the effect of the Tenancy Deposit Schemes (Scotland) Regulations 2011 (the legislation), you can always check out our FAQ pages, or email me.

 

Q. Your service is free - what’s the catch?

A. The legislation specifies that all schemes must operate a free to use service for landlords, agents and tenants: there isn’t a catch!  Interest earned on the protected deposits pays for the running costs of the scheme.

 

Q. I have a portfolio of properties for which I receive the interest from the deposit funds.  Will you pay me interest as otherwise this system is a cost to me?

A. The legislation ordered deposit protection schemes to be custodial only, which means we hold your tenant’s deposit for you. We are unable to pay the interest to you at this time.

 

Q. Why aren’t you affiliated with any landlord or tenant associations?

A.  We welcome members who are affiliated to a landlord or tenant association, but we pride ourselves on offering a completely independent and impartial service open to all.

 

Q. Will you come and visit my property should there be a dispute between myself and my tenant?

A.  This is not possible. The landlord and tenant must supply comprehensive relevant evidence to back up their claim or defence in the event of a dispute.  The adjudicators will never visit a property and it is unlikely that they will contact you to question your evidence submission.   We welcome all evidence submitted to us, and the landlady who took a photo of her bare feet to demonstrate how the hard floor in her apartment had not been cleaned was certainly innovative....

 

Q. I need the deposits for cash flow.  I just had to pay for a new boiler in the property and now can’t afford to lodge the deposit.

A. The deposit was never yours to use; the money belongs to the tenant until the end of the tenancy (when the landlord or letting agent may make a claim for some or all of it, depending on the terms of the lease), and provided that, in the above case, they can prove that the boiler had to be replaced because of the tenant’s actions. As such you will still need to protect the deposit to comply with the new legislation; failure to do so may result in you paying compensation of up to three times the deposit amount to your tenant.

 

Q. How is the system policed? 

A. The legislation, together with the terms and conditions of the LPS Scotland, provide ways for information to be provided between landlord and tenant, and for any disputes to be resolved.  For example, tenants may apply to the courts for up to three times their deposit amount should their agent or landlord fail to lodge their deposit on time and supply them with the required information (Regulation 42). Such an application may be made up to three months after the tenancy has ended.

 

Q. You have a sample template on your website for me to give to my tenant covering the required information they need to know.  Should I be providing my tenant with anything else to comply with the legislation?  

A. The required information template (Regulation 42) contains everything the tenant needs to be aware of according to the legislation. When funds are lodged against your property’s deposit we also supply you and your tenant with confirmation that the deposit is protected.

 

Q. If my tenant doesn’t pay the last month’s rent, how do I claim from the deposit?

A. At the end of the tenancy you can apply to your deposit protection scheme to retain some or all of the deposit, as long as the lease states that you can recover non-payment of the rent from the deposit. You can find out further information about this process on our website.

 

Q. What experience do you have in understanding the issues that landlords and letting agents in Scotland face?

A. I have been in the residential property industry for 25 years in Scotland.  I have faced the problems that you face and know your concerns.  Our system has been set up to help you, not only with administration but also to help alleviate your tenants’ concerns.

 

Anthony operates from The LPS Scotland’s Edinburgh office. 

 

 

Anthony’s tour de Scotland

Today we have a blog from Anthony Cox, The LPS Scotland’s Regional Manager: I have been adding many miles to my car lately; travelling to all parts of Scotland hosting free drop in sessions; helping landlords and agents become familiar with the Tenancy Deposit Schemes (Scotland) Regulations and our scheme.  The sessions have been well attended and it’s been great to meet so many of our customers and to answer your questions.  It is wonderful to watch people’s reactions to the explanation of the effect of the legislation - mostly glum to begin with (good landlords feel that the legislation has been landed on them and it is through the actions of a few bad ones that this system has been implemented) but within minutes they understand that the system is not as onerous as they expected, so they leave smiling!

I have been visiting landlords and letting agents on a one to one basis, geographically ranging from Fraserburgh and Aberdeen to Dumfries and Kelso, Oban and many places in between.

We are the only provider in Scotland with experience of running a custodial scheme, experience that counts when it’s time to return funds at the end of the tenancy - our sister company The DPS processes over 4000 transactions daily in England and Wales.  At one presentation in Aberdeen a letting agent explained that they had processed their first repayment with us and found it so much easier than they expected! We realise that deposit protection is a big change for landlords and letting agents, which is why we make it as simple as possible to administer.

Along the way I’ve heard some amusing and some frightening stories from the landlords and letting agents I have met. One landlord told me their tenant wanted to light a log burning stove, so put a log in the kitchen sink and covered it with petrol before carrying through the house.  Half the house fell down and the poor tenant was in hospital for six months.

In my next blog post I’ll be answering some of the common questions landlords and letting agents have been asking me. In the meantime, I’d like to know your thoughts on the following questions:

  • What did you think about the legislation before it came into force and what, now you are familiar with it, are your thoughts today?
  • How easy has it been for you to adjust to paying the deposit into a scheme rather than into a deposit account held and managed by you?
  • How can you see the legislation helping landlords and how will they help tenants?
  • Why did you chose The LPS Scotland – or indeed, why didn’t you?

All information will be anonymous so please don’t include property addresses!

You can email me your thoughts: Anthony.Cox@lettingprotectionscotland.com

 

Do you know your deadline for protecting your tenant’s deposit?

On the 2nd October 2012, the second phase of timings for complying with The Tenancy Deposit Schemes (Scotland) Regulations kicks in. This means that any deposits received on or after the 2nd October 2012 need to be protected in a government approved scheme within 30 working days of the start of the tenancy.

Any deposits received before the 2nd October (but on or after the 7th March 2011) need to be protected in that way by the 13th November 2012.

If you have a deposit which you received from a tenant before the 7th March 2011 you need to protect it within 30 days of the tenancy renewal date (if this is after 12th November 2012), or if this doesn’t apply, by the 14th May 2013.

We know this can sound quite confusing, so if you’re not sure when you need to protect your tenant’s deposit, visit our website where we have a Timescales for Compliance Calculator which will help to work out the date for you! All you need is the date you received (or will receive) the deposit and a tenancy renewal date if you have one.

If you would like to find out more about tenancy deposit protection in Scotland and how it affects you, we have lots of information for landlords and letting agents on our website, or you can check out our FAQ pages.

Our second prize draw winner is announced!

A lucky letting agent from Crieff is the second of our prize draw winners to win a hospitality package to the William Hill Ayr Gold Cup Opening Day. Dale and Robert Hobbs of Hobbs Lettings were automatically entered into the prize draw when they submitted a deposit to The LPS Scotland. The prize allows them to treat five of their colleagues, family members or friends to a five-star day out at the Ayr Cup on 20th September 2012.

We’re delighted to welcome Hobbs Lettings as customers and we hope that they have a fantastic day out at the races.

Upcoming Events

Aberdeen Seminar and Drinks Reception, 18th September 2012 Following previous events in Edinburgh and Glasgow, we’re holding a seminar and drinks reception in Aberdeen on the 18th September 2012.

During the seminar you’ll be able to find out more about deposit protection legislation in Scotland and how it affects you. We'll also be discussing timelines for deposit protection and how to prepare if dispute resolution is needed.

The drinks reception will provide a great opportunity for you to meet some of The LPS Scotland team and network with your colleagues in the letting industry. If you’d like to attend please click on the link to RSVP below.

Date: Tuesday 18th September

Seminar: 15:00 - 17:00

Drinks Reception: 17.00-19.30 (drinks and canapés will be provided)

Location: Jurys Inn Aberdeen Hotel, Union Square, Guild Street, Aberdeen, AB11 5RG

Click here to RSVP

 

Drop-in Sessions

In September and October The LPS Scotland are holding information drop-in sessions across Scotland, where landlords and letting agents can pop in to meet some of our team, ask questions and have a demonstration of our system.

We’ll be running morning (10am – 1pm) and afternoon (3pm – 6pm) sessions at 25 locations across the country. Simply pop along when it's convenient for you – there’s no need to book.

To find out more and see the locations we’re visiting, please visit www.lettingprotectionscotland.com/events.

We look forward to seeing you there.