Admin fee instead of deposit

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M
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I'm following the RLA recommendation and not taking deposits any longer. Instead I'm introducing a Landlords Insurance and Administration Fee. This is non-returnable. I have 4 properties and have been letting for 7 years, and so far (touch wood) I've only had to withold 50 on one occasion for repainting scuffs on a couple of walls. My properties rent for 650 to 750pcm and the deposit used to be a month's rent. I'm now going to charge 200 as the new fee. This works as a self-insurance fee. Assuming 6-month tenancies, 200 x 8 per annum =1600, and hopefully I won't need to use anything like this sum. If there's no damage or arrears, the money is extra profit. Advantage to the tenant is they don't have to find 750 up front. Win-win all round.
30/08/2007 00:00

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