Is there a market for an escrow service for tenancy deposits in the absence of a PRTB service? There would be no obligation on anybody to use it but surely it would be in tenants interest to do so. The funds would only be released on the instruction/agreement of both parties or a PRTB dispute ruling. It would put an incentive on landlords to sort out disputes quicker as delays work in their favour currently.
What you mean something like the norm in Belgium, wouldn’t work here, no market for something like that, utter nonsense
This was introduced in the UK recently by legislation, I think.
There is talk of implementing it in Ireland. I’m talking about a commercial product to fill the gap left by our inept government. In Australia we have this system and the tribunals etc. are funded with the deposit interest. It means that the system is run for the tenant seeing as they are the ones funding it.
It sounds like a good idea but you would have to drag landlords into it kicking and screaming, because deposits are “their” money!
The escrow system is used in the U.S. I asked about it when we put our deposit down for the current rental and got a very confused look.
I don’t see how a trustworthy landlord could refuse to use it. As you point out it’s not their money so the interest should actually either go to administration or to the tenant.
It would have to be brought in as law - otherwise I can’t see many/any landlords wanting to do it. Even an otherwise-decent landlord would be thinking “why should I sign up to this - this tenant could be a complete b@stard and I just don’t know yet - why should I surrender any rights at all?”
because they theoretically have no rights to be surrendering in that case. They are not supposed to keep the deposit unreasonably.
I feel sorry for decent landlords. I know 1 exists because I dealt with 1 ten years ago. most of the rest have just wrecked my head.
Wasn’t the norm when I rented there. Some accepted it, others didn’t.
Two agencies I dealt with only operated this way - was told by one that this is the way we have to do it? Shower of cowboys a friend dealt with didn’t but I just assumed that this was just because they were natural scumbags who managed to break just about every other rule anyway.
I never dealt with agencies, always with private landlords directly. C’est plus pratique!
Should it be in place… yes.
Is it an opportunity for a stand alone business? I don’t think so.
However if you expand a little it may be more appealing.
Like for instance… if you included other deposits… deposits for houses for example…
It would remove the risk from dodgy solicitors etc…
It really is something the state should legislate for and then either step in and do it or let a private enterpise take it on.
IMO the PRTB should have been funded from this sort of system.
I know they have rights in law. But I’m talking about what happens in practice. What currently happens in practice suits landlords. Why would they voluntarily agree to change that practice? There is nothing to motivate them.
The landlord would also want to kiss the interest on the deposit that they currently get, goodbye!
exactly - LLs have no reason to go along with with it and good reasons to resist it. There is no chance they’d support this - they’d be mad to do so.