Deposit Protection Scheme

gizmo81

Threshold is calling for a deposit protection scheme to be introduced in Ireland, looking for two+ months deposit is just another form of discrimination imo.

"There was planned legalisation in relation to rent deposits but the government kicked it in to touch and now it’s just hanging there. A third party should hold deposits instead of landlords holding them, as a lot of the time landlords retain deposits where there are no grounds," explained Mr McCafferty.

http://www.independent.ie/irish-news/landlords-charging-two-months-rent-deposit-where-they-cant-increase-rent-charity-35961861.html

I believe both parties should have to contribute a deposit.

Tenant for damage and landlord for repairs/maintenance.

antoinolachtnai

All this just adds extra expense for the tenant. If tenants were prepared to pay the extra 100 or 200-odd euros to administer such a scheme, it could work. If they want a landlord to put up a deposit, that's going to cost ten percent of the deposit per year to finance, and the tenant will have to pay for that too.

Hollister11

Your deluded.

How is looking for 2 months deposit discrimination? A landlord is trying to protect their property, if tenants have a lot to loose they will respect the property. Most can't afford to loose 3K.

In some states in the US its 3 months up front.

LirW

3 months is the norm in a lot of countries. I always had to pay 3months upfront plus EA fee of 2 months rent. A month is actually a generously small deposit.

Yourself isit

LirW wrote: »

3 months is the norm in a lot of countries. I always had to pay 3months upfront plus EA fee of 2 months rent. A month is actually a generously small deposit.

Where?

LirW

Austria. Germany is very similar, so are Italy and France. Minus the EA fee, that depends on the city really, I lived in one where you wouldn't get a place without an EA and they charge the tenant the cost of their service (locking a door open for a viewing).

Fol20

It may sound great in theory but at the end of the day, it costs money to admin and who is going to pay for this. Tenants dont want to pay for it and the more costs you put on ll. they are either going to go out of the market or increase prices. So it's basically loose loose for both parties.

Samuel T. Cogley

A deposit protection scheme is exactly whats needed; however there needs to be a butting out of the what deposits are taken, that's entirely up to the LL and market to decide. LLs have no option but to take large deposits to offset the ridiculous amount of rights a tenant has to remain in situ, not paying rent. On the other hand it is baffling to me that some LL's don't, as a matter of course, keep deposits separate in an interest bearing account.

1000 tenants involved in this with €1000 deposits is €1,000,000 in the bank even at 1% pa interest that's €10,000 per 1000 tenants to administer the scheme without anyone paying a penny.

hognef

In Norway, three months' deposits are pretty much the norm.

Deposits are kept in a special deposit account in pretty much any bank: The landlord chooses the bank and pays any costs involved (once-off €30 upwards if done through online banking, more if over the counter), the tenant deposits the agreed amount, the account is in joint names and requires both parties' agreement before any withdrawal can be made. Any interest accrued belongs to the tenant.

Any conflicts are handled by a lowest-level court or a government agency (a bit like the RTB). I've never had or heard of any issues with that system.

Even if the account opening fee might be, indirectly, paid by the tenant through marginally higher rents, I'd easily prefer that to a system in which the landlord holds all the power over the deposit.

rsynnott

antoinolachtnai wrote: »

All this just adds extra expense for the tenant. If tenants were prepared to pay the extra 100 or 200-odd euros to administer such a scheme, it could work. If they want a landlord to put up a deposit, that's going to cost ten percent of the deposit per year to finance, and the tenant will have to pay for that too.

Where are you getting that number? Seems to cost about 10 pounds per tenancy in the UK.