My estate agent has said that they hold the deposit, but that it is held in a non interest bearing account. Do I believe them? This could amount to hundreds of thousands of pounds for them. Why would they hold it in a non interest bearing account?
Are there any rules on this in the UK?
2007-01-09 23:30:39 · 7 answers · asked by Copper 4 in Business & Finance ➔ Renting & Real Estate
It's up to them what they do with it, it is held in trust until you get it back. Don't think for a minute that your actual money is held somewhere separate, it will be used in the general cashflow of the business. It's one of the ways they earn money. Only way to avoid it is to get on the property ladder and give the interest to a mortgage company instead...
2007-01-09 23:37:22 · answer #1 · answered by annie 6 · 1⤊ 0⤋
Typically, the deposit is to escrowed in a non interest bearing accoutn since it is a liability for the landlord. If it generates any income, that interest income is to be refunded to the tenant with the initial deposit less costs.
Having said that...in most cases where the funds are held in an interest bearing acct, the landlord keeps the interest income and it is usually a paltry amount
2007-01-10 01:24:35 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
I don't know how the tax law is in the UK but in US I can't see anyway the interest would be returned to the renter. It would have to be reported to the IRS every year and would be a nightmare for the owners.
2007-01-09 23:43:28 · answer #3 · answered by madjer21755 5 · 0⤊ 0⤋
estate agents will always come out on top, why else would they do the job?
2007-01-09 23:35:08 · answer #4 · answered by Tracy 3 · 0⤊ 0⤋
In the US it is up to local law. I don't know about UK
2007-01-10 00:10:28 · answer #5 · answered by Anonymous · 0⤊ 0⤋
THE ESTATE AGENT OR LAND LORD
2007-01-09 23:35:46 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I'm a landlord, I do, (It's no a lot)
2007-01-09 23:37:32 · answer #7 · answered by Greybeard 7 · 0⤊ 0⤋