This country has experienced unprecedented gains in housing prices over the past five years. With some regional markets expanding at a phenomenal 25% annual average, the investors who got in early have created tremendous wealth. However, in my opinion, this wild roller coaster ride is about to stop on the way up and the people still in the car are going to come crashing down off the tracks.
I recently saw an alarming statistic. The hype and pandemonium of the real estate boom has created a stampede into the industry. More people than ever before are buying real estate strictly for investment purposes. Unfortunately, the majority are doing so with limited or no knowledge whatsoever concerning the pros and cons of owning rental property. Twenty-three percent, almost one-quarter, of all homes purchased in this country in 2004 were investment properties! Not owner-occupied, but pure rental homes.
Since the average buyer doesn’t understand the inherent risks and potential cash-flow problems with this property class, many are feeding cash into their investment every month. For those of us who make a living in the real estate business, negative cash-flow is the cancer of our industry and can lead to a slow financial death. However, the new and uneducated investor doesn’t see this as a problem since he is used to contributing monthly to his investment portfolio via his weekly paycheck. His only rescue from this negative cash-flow dilemma is an increase in value of the underlying property. In the simplest term, he is a speculator.
Professional speculators have made a ton of money in real estate and other industries for centuries. These superstars aren’t your ordinary people. They understand supply and demand relationships, market timing, growth patterns, and economic cycles. I dare say the overwhelming majority of people buying real estate today as an investment doesn’t fit into the professional category. As a matter of fact, the uneducated investor is often the customer who ends up lining the pocket of the professional speculator.
If you have been fortunate enough to experience the thrilling ride of the housing roller coaster, I encourage you to contemplate getting off and moving on to a more predictable, long-term investment. Find a real estate vehicle that will provide income as well as capital appreciation. Manufactured housing communities are in an asset class that can deliver both of these benefits.
Mobile home parks have slowly become the “step-children” of the real estate investing community. Due to the collapse of the mobile home financing industry over the past five years, many of the parks in this country have become neglected, highly vacated, and undesirable wastelands. Politicians are fighting to get rid of them due to the element of society they often accommodate and the eye sore the property becomes in the path of growth and development. Eliminating a mobile home park frees up valuable land needed for the current surge in the construction of stick-built housing.
So, you have an investment class that local governments are trying to force into extinction. On top of that, demand is currently low because so much money has recently been made in the single-family housing sector. Why would anyone want to move their investment funds into a mobile home park?
Affordable housing will always be required in this country. The average American must have shelter, it’s a basic need. When the housing crisis hits and interest rates rise, foreclosures will be at an all-time high and many people are going to be forced out of their current home. A destroyed credit rating will drive these people into the rental market or into some type of “owner financed” property. Not ready to give up on the American dream of home ownership, they will begin to look strongly at the manufactured housing alternative. Large living space and low pricing will be very attractive. I believe the demand will be tremendous and large lending institutions will begin to get back into the manufactured housing “game”. The interest rates for these loans will be higher than traditional mortgage rates and one or more large lenders will figure out how to turn a profit.
The mobile home buyer certainly needs a piece of land to place the home on. Parks provide the infrastructure and amenities to accommodate this need at a very reasonable cost. As home sales begin to increase, the demand for suitable mobile home park lots will heat up. The investors who own these parks will be in an ideal position as they can increase rents and still fill their empty lots. Unlike traditional housing projects, development barriers will be high and I feel this will create a huge shortage in available lots to place mobile homes.
You couldn’t ask for a better situation as a park owner. High demand, coupled with low supply creates a financial windfall for the astute investor. Cash flows will be tremendous and values will sky rocket, much like the feeding frenzy going on right now in the single-family home market. Cap rates will drop on this asset class and the large REITs will probably start paying unbelievable prices for the large, well-kept parks.
I’ve been in the business several years now and it’s a great time to buy. While the masses of park owners are crying, “sell, sell, sell”, some of us are quietly acquiring turn around parks. Most of the parks are initially at a break even or small positive cash flow position, but by implementing our system we are able to steadily increase cash flow and quickly increase value. But, even better than that, we are positioning ourselves to benefit from the potential flood of customers into our market.
I urge you to take a long look at the mobile home park investment. But, don’t wait too long. The secret is starting to get out of the bag as West Coast investors are becoming educated about this investment and its benefits. Investors from California and Arizona have purchased several parks in the Southeast in the past 12 months. Who knows, there may come a time when a good, solid mobile home park will be purchased for more than the asking price…a bidding war. Hey, it’s happening in several single-family home markets throughout the country right now. Wouldn’t you like to be the seller taking that check to the bank?
Saturday, January 22, 2011
Tuesday, December 14, 2010
Park Sarasota
McClellan Park is one of the oldest residential developments in the city of Sarasota Florida. Touted as "Sarasota's Garden Spot" in the 1916 advertisements promoting the neighborhood, McClellan park certainly lives up to that name.
It is hard to contemplate a time in Sarasota's history where many residents were still using horses for transportation but there was a day when residents of this early Sarasota neighborhood did just that. It is hard to fathom the idea that Mietaw road that leads to the corner of Hyde Park and South Osprey was laid for horse use rather than for Automobiles. Today that portion of Mietaw is now used as a pedestrian path leading to one of the most exciting areas of Sarasota for nightlife and fine dinning in the Hillview area. The main entrance to McClellan Park can be found at the end of Orange Street which is the street that leads to the center of downtown Sarasota.
It was the McClellan sisters, Katherine and Daisietta, which were responsible for platting the 56 acre park. They hired architects that specialized in landscape architecture to subdivide the park into the home sites that exist today. Shell aggregate curbs and gutters lined the streets of the unpaved roads in the development and thankfully some of the original curbs still remain today.
The Native American names used for the streets in the development are the result of the inspiration Katherine found from an ancient Indian mound found in the development. The original schoolhouse in the community was built on this sacred site.
Today the eastern part of McClellan Park is known as Paradise Shores. Many of the area's finest waterfront residences can be found here. When you cross the Indian streets and find yourself on a road with a bird name, you will know you are in the Paradise Shores area.
No other community in Sarasota can match the romance of McClellan Park. Steeped with history and some of the most interesting mix of homes in Sarasota, McClellan Park is certainly one of the best neighborhoods to call home.
Real estate offerings can be quite limited and span a huge price range. Some of the original homes in the development still exist and are being bought by builders to be leveled to make way for more opulent modern designs. Some of the highest priced shacks are sold in McClellan Park simply for the land beneath them. Some of the original homes have been beautifully restored and remind us all of a rich Sarasota history when times were much simpler than they are today.
It is hard to contemplate a time in Sarasota's history where many residents were still using horses for transportation but there was a day when residents of this early Sarasota neighborhood did just that. It is hard to fathom the idea that Mietaw road that leads to the corner of Hyde Park and South Osprey was laid for horse use rather than for Automobiles. Today that portion of Mietaw is now used as a pedestrian path leading to one of the most exciting areas of Sarasota for nightlife and fine dinning in the Hillview area. The main entrance to McClellan Park can be found at the end of Orange Street which is the street that leads to the center of downtown Sarasota.
It was the McClellan sisters, Katherine and Daisietta, which were responsible for platting the 56 acre park. They hired architects that specialized in landscape architecture to subdivide the park into the home sites that exist today. Shell aggregate curbs and gutters lined the streets of the unpaved roads in the development and thankfully some of the original curbs still remain today.
The Native American names used for the streets in the development are the result of the inspiration Katherine found from an ancient Indian mound found in the development. The original schoolhouse in the community was built on this sacred site.
Today the eastern part of McClellan Park is known as Paradise Shores. Many of the area's finest waterfront residences can be found here. When you cross the Indian streets and find yourself on a road with a bird name, you will know you are in the Paradise Shores area.
No other community in Sarasota can match the romance of McClellan Park. Steeped with history and some of the most interesting mix of homes in Sarasota, McClellan Park is certainly one of the best neighborhoods to call home.
Real estate offerings can be quite limited and span a huge price range. Some of the original homes in the development still exist and are being bought by builders to be leveled to make way for more opulent modern designs. Some of the highest priced shacks are sold in McClellan Park simply for the land beneath them. Some of the original homes have been beautifully restored and remind us all of a rich Sarasota history when times were much simpler than they are today.
Comparative
Comparative Market Analysis, or CMA as it is popularly referred to, refers to a tool adopted by realtors or real estate professionals to assess the value of a property via comparing it with related properties in a particular area, which may include properties available for purchase and properties that have been recently sold in the area. In fact, Comparable Market Analysis is an inevitable term in real estate industry that helps buyers, sellers, and realtors to take an informed decision to set up a fair price range for a property in your desired location. However, this price analysis tool could help you only if it is prepared properly. Discussed further in this article are some relevant tips for the preparation of Comparative Market Analysis.
First of all, set criteria, for which you need at least three comparables. However, make sure that you don't opt for wrong comparables for the purpose. For instance, don't use townhouses to compare condos. A variety of other factors must also be considered for setting criteria, such as neighborhood, size of property, number of beds as well as baths, style and design of property, and usability of land. The next important step that is involved in the preparation of a CMA is to build a comparable list with the help of a reliable source that provides relevant information on property that was recently sold or available for purchase in your neighborhood.
Another important step in connection with the preparation of CMA is the creation of a summary statistics using the selected comparables, for which you can use a excel spreadsheet to include rate per square foot. This in turn can be estimated by dividing the rate by each comparable's square footage. Then evaluate the average figures across each of your comparables. After this, the next step is to evaluate the price of your target property, and you can calculate this by multiplying the average rate per square footage of each of your comparables with your target home's square footage. Now you will get an idea of the market price of your target property.
First of all, set criteria, for which you need at least three comparables. However, make sure that you don't opt for wrong comparables for the purpose. For instance, don't use townhouses to compare condos. A variety of other factors must also be considered for setting criteria, such as neighborhood, size of property, number of beds as well as baths, style and design of property, and usability of land. The next important step that is involved in the preparation of a CMA is to build a comparable list with the help of a reliable source that provides relevant information on property that was recently sold or available for purchase in your neighborhood.
Another important step in connection with the preparation of CMA is the creation of a summary statistics using the selected comparables, for which you can use a excel spreadsheet to include rate per square foot. This in turn can be estimated by dividing the rate by each comparable's square footage. Then evaluate the average figures across each of your comparables. After this, the next step is to evaluate the price of your target property, and you can calculate this by multiplying the average rate per square footage of each of your comparables with your target home's square footage. Now you will get an idea of the market price of your target property.
Planning Permission
It is important to understand that permitted development does require planning permission, even though it does not require an application, because in certain areas, such as conservation areas or World Heritage Sites, the extent of what development is permitted is limited and an application is needed.
What is the Meaning of "Development" in Planning Law?
The Town and Country Planning Act 1990 defines development as "the carrying out of building, engineering, mining or other operations in, on, over or under land or the making of any material change in the use of any buildings or other land".
Building operations are defined as:
(a) demolition of buildings;
(b) rebuilding;
(c) structural alterations of or additions to buildings; and
(d) other operations normally undertaken by a person carrying on business as a builder"
This appears to encompass pretty any work that you can do to a property, though works that are internal only or that do not materially affect the appearance of the exterior are not classed as building operations. They may be classed as a change of use of course. One example is where one dwelling is converted into two or more.
What Works are Classed as Permitted Development?
The Town and Country Planning (General Permitted Development) Order 1995 describes which works are permitted and do not require an application for permission to be made. The 1995 order has been amended by numerous subsequent orders, one of the most important being the Town and Country Planning (General Permitted Development) (Amendment) (No 2) (England) Order 2008.
The Order covers all sorts of works to all sorts of properties, not just residential, but the types of residential development that are permitted include small extensions, conservatories, loft conversions, solar panels, small wind turbines etc.
Extensions, Loft Conversions and Conservatories
Extensions and conservatories which are on the side or rear of a property (so not facing a public highway) are usually permitted development provided they are:
· no more than 15% (10% for terraced houses) of the volume of the original property and in any event are no larger than 115 cubic metres
· do not cover more than 50% of the total garden area and;
· no taller than the eaves of the original house
Loft conversions do not require permission unless they have a dormer window which is visible from the highway.
Work Done to Properties That Have Previously Been Developed
If an extension or addition has been added previously then any new addition must be no bigger than 15% of the volume of the original property less the volume of the previous addition, so for example if you have already built an extension which is 10% of the size of the original property and you then wish to build an extension, that extension must be no larger than 5% of the volume of the original property, because in total the original property cannot be extended by more than 15%.
Listed Buildings, Conservation Areas and World Heritage Sites
Where a property is a listed building, no development can be carried out without planning permission. Listed buildings consent would also be required. If the property is in a conservation area or a World Heritage Site then some permitted development rights may be exercisable but they will be limited.
Article 4 Directions
Local authorities have the right to issue an Article 4 Direction, which limits particular permitted development rights for a localised area. An article 4 direction should be registered by the council as a local land charge so that it is revealed on a local authority search.
Building Regulations
It should be noted that whether or not a planning application is necessary, any works of a structural nature, replacement windows or works which involve electrical, plumbing or gas works may be subject to building regulations and if so, building regulations approval will be required.
What is the Meaning of "Development" in Planning Law?
The Town and Country Planning Act 1990 defines development as "the carrying out of building, engineering, mining or other operations in, on, over or under land or the making of any material change in the use of any buildings or other land".
Building operations are defined as:
(a) demolition of buildings;
(b) rebuilding;
(c) structural alterations of or additions to buildings; and
(d) other operations normally undertaken by a person carrying on business as a builder"
This appears to encompass pretty any work that you can do to a property, though works that are internal only or that do not materially affect the appearance of the exterior are not classed as building operations. They may be classed as a change of use of course. One example is where one dwelling is converted into two or more.
What Works are Classed as Permitted Development?
The Town and Country Planning (General Permitted Development) Order 1995 describes which works are permitted and do not require an application for permission to be made. The 1995 order has been amended by numerous subsequent orders, one of the most important being the Town and Country Planning (General Permitted Development) (Amendment) (No 2) (England) Order 2008.
The Order covers all sorts of works to all sorts of properties, not just residential, but the types of residential development that are permitted include small extensions, conservatories, loft conversions, solar panels, small wind turbines etc.
Extensions, Loft Conversions and Conservatories
Extensions and conservatories which are on the side or rear of a property (so not facing a public highway) are usually permitted development provided they are:
· no more than 15% (10% for terraced houses) of the volume of the original property and in any event are no larger than 115 cubic metres
· do not cover more than 50% of the total garden area and;
· no taller than the eaves of the original house
Loft conversions do not require permission unless they have a dormer window which is visible from the highway.
Work Done to Properties That Have Previously Been Developed
If an extension or addition has been added previously then any new addition must be no bigger than 15% of the volume of the original property less the volume of the previous addition, so for example if you have already built an extension which is 10% of the size of the original property and you then wish to build an extension, that extension must be no larger than 5% of the volume of the original property, because in total the original property cannot be extended by more than 15%.
Listed Buildings, Conservation Areas and World Heritage Sites
Where a property is a listed building, no development can be carried out without planning permission. Listed buildings consent would also be required. If the property is in a conservation area or a World Heritage Site then some permitted development rights may be exercisable but they will be limited.
Article 4 Directions
Local authorities have the right to issue an Article 4 Direction, which limits particular permitted development rights for a localised area. An article 4 direction should be registered by the council as a local land charge so that it is revealed on a local authority search.
Building Regulations
It should be noted that whether or not a planning application is necessary, any works of a structural nature, replacement windows or works which involve electrical, plumbing or gas works may be subject to building regulations and if so, building regulations approval will be required.
Saturday, November 27, 2010
Homes and Condos
The Landings was one of Sarasota's first modern, in-town, gated luxury home communities. This community has a mix of large homes on well landscaped and waterfront lots, as well as maintenance free villas. The meandering streets within The Landings are lined with large banyan trees, and beautiful tropical Florida foliage.
The Landings is also classed as a "West of the Trail" neighborhood. The Landings is bordered by Tamiami Trail (US 41) to the west, Oyster Bay Estates to the north, Phillippi Creek to the south, and Roberts Bay and the inter-coastal waterway to the west. The neighborhood has an excluded feel yet resides in one of the best locations in Sarasota.
The community was developed in the early 1980's and consists of 700 2,000 to 4,000 square foot residences ranging in price from $400,000 to over $1 million. The Landings amenities include a racket club with a fitness center and a pool. Membership to the racket club is optional for most residents; however there are some condo developments that do require a membership.
The newest addition to The Landings community is the condo development known as Phillippi Landings. This condo development consists of 5 buildings ranging in height from five to seven floors and features modest 1,700 foot residences to opulent penthouse units over 7,000 square feet in size. This development adorns the shores of Phillippi Creek and residences have access to boat slips. Phillippi Creek leads to the inter-coastal waterway, Sarasota bay, and the Gulf of Mexico.
The tree house residences in the community are unique to The Landings. These multi level residences are strategically placed in the community between the large old growth trees found in the neighborhood. Imagine sitting on your balcony at the height of the forest canopy having breakfast watching the numerous native birds and squirrels that live in the area. This is a rare living environment that can only be found in the tree house residences found in The Landings.
The maintenance free villas offer some of the best value in the development, these villas average 1,500 square feet with 1 car garages and hover around. $200,000. Maintenance free living is ideal for retirees and snowbirds that will only reside in the community six months out of the year.
The location of the Landings is what makes this community so attractive. Less than 10 minutes form the famous Siesta Key Beach, and close to every shopping opportunity imaginable in Sarasota makes living here simple. There are 3 golf courses within a 10 minute drive that have memberships across all price points for Landings residents that enjoy playing golf.
The Landings is also classed as a "West of the Trail" neighborhood. The Landings is bordered by Tamiami Trail (US 41) to the west, Oyster Bay Estates to the north, Phillippi Creek to the south, and Roberts Bay and the inter-coastal waterway to the west. The neighborhood has an excluded feel yet resides in one of the best locations in Sarasota.
The community was developed in the early 1980's and consists of 700 2,000 to 4,000 square foot residences ranging in price from $400,000 to over $1 million. The Landings amenities include a racket club with a fitness center and a pool. Membership to the racket club is optional for most residents; however there are some condo developments that do require a membership.
The newest addition to The Landings community is the condo development known as Phillippi Landings. This condo development consists of 5 buildings ranging in height from five to seven floors and features modest 1,700 foot residences to opulent penthouse units over 7,000 square feet in size. This development adorns the shores of Phillippi Creek and residences have access to boat slips. Phillippi Creek leads to the inter-coastal waterway, Sarasota bay, and the Gulf of Mexico.
The tree house residences in the community are unique to The Landings. These multi level residences are strategically placed in the community between the large old growth trees found in the neighborhood. Imagine sitting on your balcony at the height of the forest canopy having breakfast watching the numerous native birds and squirrels that live in the area. This is a rare living environment that can only be found in the tree house residences found in The Landings.
The maintenance free villas offer some of the best value in the development, these villas average 1,500 square feet with 1 car garages and hover around. $200,000. Maintenance free living is ideal for retirees and snowbirds that will only reside in the community six months out of the year.
The location of the Landings is what makes this community so attractive. Less than 10 minutes form the famous Siesta Key Beach, and close to every shopping opportunity imaginable in Sarasota makes living here simple. There are 3 golf courses within a 10 minute drive that have memberships across all price points for Landings residents that enjoy playing golf.
Pending Home Sales
It was expected: home sales would drop following the April end of the Homebuyer Tax Credit program. What wasn't expected, and what has the industry reeling, is the depth of the drop-off. Pending home sales -meaning home sales that are under contract but are not yet closed- fell off 30% in May from its April mark. This drop, to put it in perspective, is the largest single month drop ever recorded, and to make it even more significant, was a 15.9% decrease for the same month a year earlier.
Some would call this drop a falling off a cliff. A free-fall of painful proportions. And though it wasn't fully unexpected, it still stings.
What it means
Does this level of drop-off mean anything to long-term health or growth of the housing industry? The debate can now be opened up. Many factors came to pass in April, including the Federal government no longer buying up troubled assets, the homebuyer credit coming to an end, and interest rates beginning their rise up from historically low levels.
Another factor that is contributing to the drop-off is the slow economic recovery in this country. Millions of people remain out of work and millions more have been laid off in recent months. It was the perfect compilation of factors that would -each, individually- have led to a decrease in the number of pending home sales in May, regardless of other factors. Yet taken together as a whole, all aggregate factors combined to offer the struggling real estate market the worst single month drop in its history. All this according to the National Association of Realtors (NAR).
How to handle the news
It may seem bleak for many of the nation's realtors, one thing that can be taken away from this abysmal report is that perhaps the worst is now behind us. News has surfaced that President Obama is considering extending the homebuyer tax credit through September, the government is indicating that growth is steady, which means employers will soon be hiring once again, and the Wall Street Reform bill that is expected to pass and be signed into law can open up lending within many of the nation's leading financial institutions.
As realtors or mortgage brokers or lenders, May's numbers are certainly eye-opening, even depressing, but it's up to each of us to look beyond the number, beyond the factors that led to that drop-off, and see the signs of recovery that surround us everyday.
Is the worst truly behind us?
It is certainly a challenge to remain positive and optimistic as the weeks roll into months and the months stretch out into years, but it is incumbent upon us to continue to think positively, to shrug off the bad, staggering news, and look for the silver linings, wherever they may be hiding. The alternative is to continue to be morose and downtrodden about the economic climate around us, and when that happens, it becomes exceedingly challenging to get other people, most importantly potential homebuyers, to feel positive about the future.
No one truly knows what lies around the next corner of this recession. Depending on whom you ask, you will receive a different answer. And it always seems to be politically motivated. Don't look to Washington for the answers; look to your own community. Emphasize the positives that have happened over the past year, or the past month, or the past week.
The only way to turn tragically bad news, such as the May pending home sales report, into positive indications is on a local, community-based level and within every community, there are beacons of light shining everywhere; you just need to look harder.
Some would call this drop a falling off a cliff. A free-fall of painful proportions. And though it wasn't fully unexpected, it still stings.
What it means
Does this level of drop-off mean anything to long-term health or growth of the housing industry? The debate can now be opened up. Many factors came to pass in April, including the Federal government no longer buying up troubled assets, the homebuyer credit coming to an end, and interest rates beginning their rise up from historically low levels.
Another factor that is contributing to the drop-off is the slow economic recovery in this country. Millions of people remain out of work and millions more have been laid off in recent months. It was the perfect compilation of factors that would -each, individually- have led to a decrease in the number of pending home sales in May, regardless of other factors. Yet taken together as a whole, all aggregate factors combined to offer the struggling real estate market the worst single month drop in its history. All this according to the National Association of Realtors (NAR).
How to handle the news
It may seem bleak for many of the nation's realtors, one thing that can be taken away from this abysmal report is that perhaps the worst is now behind us. News has surfaced that President Obama is considering extending the homebuyer tax credit through September, the government is indicating that growth is steady, which means employers will soon be hiring once again, and the Wall Street Reform bill that is expected to pass and be signed into law can open up lending within many of the nation's leading financial institutions.
As realtors or mortgage brokers or lenders, May's numbers are certainly eye-opening, even depressing, but it's up to each of us to look beyond the number, beyond the factors that led to that drop-off, and see the signs of recovery that surround us everyday.
Is the worst truly behind us?
It is certainly a challenge to remain positive and optimistic as the weeks roll into months and the months stretch out into years, but it is incumbent upon us to continue to think positively, to shrug off the bad, staggering news, and look for the silver linings, wherever they may be hiding. The alternative is to continue to be morose and downtrodden about the economic climate around us, and when that happens, it becomes exceedingly challenging to get other people, most importantly potential homebuyers, to feel positive about the future.
No one truly knows what lies around the next corner of this recession. Depending on whom you ask, you will receive a different answer. And it always seems to be politically motivated. Don't look to Washington for the answers; look to your own community. Emphasize the positives that have happened over the past year, or the past month, or the past week.
The only way to turn tragically bad news, such as the May pending home sales report, into positive indications is on a local, community-based level and within every community, there are beacons of light shining everywhere; you just need to look harder.
Tenancy Deposit Schemes
If you are a UK landlord and take a deposit for your rental property you must place this with one of three such schemes which been authorised.
* The Deposit Protection Service - the only custodial deposit protection scheme - is free to use.
* Tenancy Deposit Solutions Ltd is a partnership between the National Landlords Association and Hamilton Fraser Insurance. This insurance-based tenancy deposit protection scheme enables landlords to hold deposits.
* The Tenancy Deposit Scheme is an insurance-backed scheme that enables landlords to hold deposits.
When a landlord receives a deposit he or she has 14 days to comply with the requirements of one of the above schemes. The landlord must also, within two weeks and inform the tenant in writing of:
* Full name, address, telephone number, email address and any fax number of the scheme administrator of the authorised tenancy deposit scheme applying to the deposit;
* Information contained in a leaflet supplied by the scheme administrator to the landlord which explains the operation of the relevant Housing Act provisions.
* The procedures that apply under the scheme by which an amount in respect of a deposit may be paid or repaid to the tenant at the end of the tenancy.
* The procedures that apply under the scheme where either the landlord or the tenant is not contactable at the end of the tenancy.
* The procedures that apply under the scheme where the landlord and the tenant dispute the amount to be paid or repaid to the tenant in respect of the deposit.
* The facilities available under the scheme for enabling a dispute relating to the deposit to be resolved without recourse to litigation.
There is no requirement in the Act for the tenancy agreement itself to specify which deposit protection scheme has been used although landlords may do so if they so wish.
Tenancy Deposit Solutions has no recommended wording but issues a certificate to landlords that can be used to provide information to tenants and to provide proof of compliance with the Act. The Tenancy Deposit Scheme on the other hand has a form of wording which it requires members to use - and which is only available to members.
At the end of the tenancy, if the landlord and tenant agree how the deposit should be divided, they will tell the scheme they are using what they have agreed and the money will be paid out accordingly. Should there be a dispute over the deposit, the scheme will hold the amount until the dispute resolution service or courts decide what is fair.
Both custodial and insured schemes feature alternative dispute procedures that can be called on to settle disputes.
* The Deposit Protection Service - the only custodial deposit protection scheme - is free to use.
* Tenancy Deposit Solutions Ltd is a partnership between the National Landlords Association and Hamilton Fraser Insurance. This insurance-based tenancy deposit protection scheme enables landlords to hold deposits.
* The Tenancy Deposit Scheme is an insurance-backed scheme that enables landlords to hold deposits.
When a landlord receives a deposit he or she has 14 days to comply with the requirements of one of the above schemes. The landlord must also, within two weeks and inform the tenant in writing of:
* Full name, address, telephone number, email address and any fax number of the scheme administrator of the authorised tenancy deposit scheme applying to the deposit;
* Information contained in a leaflet supplied by the scheme administrator to the landlord which explains the operation of the relevant Housing Act provisions.
* The procedures that apply under the scheme by which an amount in respect of a deposit may be paid or repaid to the tenant at the end of the tenancy.
* The procedures that apply under the scheme where either the landlord or the tenant is not contactable at the end of the tenancy.
* The procedures that apply under the scheme where the landlord and the tenant dispute the amount to be paid or repaid to the tenant in respect of the deposit.
* The facilities available under the scheme for enabling a dispute relating to the deposit to be resolved without recourse to litigation.
There is no requirement in the Act for the tenancy agreement itself to specify which deposit protection scheme has been used although landlords may do so if they so wish.
Tenancy Deposit Solutions has no recommended wording but issues a certificate to landlords that can be used to provide information to tenants and to provide proof of compliance with the Act. The Tenancy Deposit Scheme on the other hand has a form of wording which it requires members to use - and which is only available to members.
At the end of the tenancy, if the landlord and tenant agree how the deposit should be divided, they will tell the scheme they are using what they have agreed and the money will be paid out accordingly. Should there be a dispute over the deposit, the scheme will hold the amount until the dispute resolution service or courts decide what is fair.
Both custodial and insured schemes feature alternative dispute procedures that can be called on to settle disputes.
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