One agent who estimates that the TDS could be bringing in £15m this year after its price hikes is asking where previous TDS surplus has been spent.
Ian Sanford, of Pennington Homes, said: “It is interesting to note that the TDS accounts for the year ending 31st March 2008 show that they made a profit of £1,143,072 before tax – not bad for a so called non-profit making organisation.
“Something must have gone very seriously wrong with the control of their finances in 2009 for the retained profit of £873,072 to have disappeared. Their income in 2008 was just under £3m and one has to assume that in 2009 it was likely to be somewhat higher.
“Even if the 2009 income was much the same as 2008, applying an average proposed increase in fees of 500% (our own proposed increase is actually 725% and some agents have received proposed increases of more than this) would give them an income for 2010 of £15m which is plain ridiculous.”
He said: “Until they are transparent about their accounts and where the money has gone, I do not believe they have the right to any increase in fees.”
He also queried why a non-profit making organisation referred in its accounts to ‘profits’. He said the term should be ‘surplus’.
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Comments
When Deposit Protection Legislation became law, I gave tremendous thought about which scheme to use, either TDS or DPS. DPS won the day due to admin concerns with TDS. It would appear that from what has now happened that choosing the DPS was more astute than I thought. I would strongly suggest those using TDS should consider moving over to the DPS; I find it very easy to use, although their dispute service can take a couple of months, cost effective; we charge £30 per deposit. Yes, we no longer have the comfort of holding deposits, but this no longer concerns me; after a time, you just get used to working a different way of dealing with deposits. Finally, there is no charge applied by the DPS; I know where I stand.
Estate (Sales) Agents should be marketed and kept seperate from Lettings & Property Management Agents.
NFoPP can make a start by returning to the COMPLETE seperation of NAEA and ARLA membership criteria - the disciplines and skills are totally different.
Landlord of Old - I am an Agent of Old, never sold a house and we certainly do not consider ourselves as numpties! However I do agree with you on EA's becoming LA's can (on occasion) erode the 'pure letting experience' offered by established LA's. We all do our very best to avoid dispute though when they inevitably appear it is usualy more through vexation than poor LA management. If the TDS were a school there would be an Ofstead, if there was a substantiated complaint then there would be ‘Special Measures’. We only ask seek an explanation though it may appear as a whinge or fury to others.
Are all of you agents numpties ? initially there were no complaints/disputes as 6 months needs to pass, then tenacies end-disputes appear, more and more disputes as more registered deposits....tenants starting to realise any deductions can be disputed without much time/effort L/L has to prove, anyway stop complaining most of the disputes caused by former EA's becoming LA's who thought it was easy.
I find it saddening how ANGRY our industry has become within 10 days. We all individually operate in such a way to provide a service and make a living. When we (as agents) get it wrong we have to provide an explanation or make amends or a complaints procedure ensues - surely this is basic trading practice. TDS PLEASE SIMPLY SPEAK TO YOUR MEMBER AGENTS AND EXPLAIN YOUR REASONING (and get out from behind the legislation)!