I am moving my tenancy to openrent. My tenants deposit was secured with another service provider which I’ve now moved to MyDeposit custodial scheme under landlords.
In MyDeposit there is an option to secure a deposit as an agent or as a landlord. I have secured my tenants deposit as a landlord. Isn’t this what is specified in the link below.
During the RentNow process would the deposit be secured under the Agent custodial section? Is anyone able to clarify this?
“If you don’t have one OpenRent automatically tries to create a mydeposits Custodial Scheme account for you. If you are not already registered we’ll create the account and immediately register the deposit. We will use the same email address associated with your OpenRent account.”
The RentNow process will only deal with deposit placed as part of that process. If you are transferring a tenancy to Openrent, the tenant will need to pay the deposit to OR as part of the application/ signing process. ie refund the old one / collect a new one.
OR is a good system for new tenancies. It isn’t designed for existing tenancies being transferred in, as your tenant will need to pay a new 1week holding deposit, and then the security deposit & balance of first rent payment to OR.
I’ve done this with x2 of my long term tenants. It can be done but needs to be very fully explained to the tenant with them onside. One tenant, I never took new OR deposit for the new agreemment, and just refunded the old one.
I’ve now realised that Scotland has a different rule to England and wales as the link clearly says that which I overlooked. I am in England.
I transferred the tenants deposit from DPS to MyDepoit thinking this will be acceptable to OR but have realised that is not how it works. Refunding the deposit by MyDeposit will take 14 days due to some money laundering rule so the whole process has been delayed.