The average tenant is having to find a deposit of £1,197.73, says Mydeposits. The scheme says the amount has gone up by over a third – or £303.91 – in the last seven years.
The average deposit size in London is £1,760.70, while the cheapest average deposits are in Yorkshire & the Humber at £592.75. In the second quarter of this year, deposit amounts rose by 4.12% (or £47.34) compared with the first quarter. Mydeposits has taken the data from its records of over 2.3m tenancies across England and Wales.
At Belvoir, we tend to take a deposit of 1.5 times the monthly rent (but slightly less on 1 bed properties), making the average deposit for a 2 bed property with us approximately £1125. Why 1.5 times the rent? If we took just 1 rental amount, the tenant could just stop paying the rent early, leaving you the landlord with no buffer or contingency to cover any damage or excessive wear & tear they might cause.
Here in this office we prefer to use TDS, The Dispute Service. This involves us holding the deposit in a bonded account for all our managed properties. For unmanaged tenancies or mid-term take overs, we tend to use DPS, the Deposit Protection Service, and they would hold the funds themselves, but for both cases we would be the office who issues the prescribed information to both landlord & tenant, and we must lodge & register the funds in each case within 14 days from receipt.
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