Tenancy Deposits

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A landlord will usually ask for a deposit to safeguard against any damage caused to the property and its contents.

Amounts vary but the legal maximum a landlord can charge is two months rent. This is a returnable sum and you should obtain a receipt. If at the end of the tenancy there has been no damage to the property beyond reasonable ‘wear and tear’ and no bills remain outstanding, then the deposit should be returned in full.

Landlords have 30 calendar days to safeguard a deposit. There are two types of schemes: a custodial scheme and insurance-based scheme.

All deposits taken by landlords in relation to assured shorthold tenancies (AST) have to be covered by a Tenancy Deposit Protection scheme. This law was introduced to ensure that when a tenant pays a deposit, they are entitled to get all or part of it back.

A landlord will pay the deposit into a custodial scheme. At the end of the tenancy, if the landlord and tenant agree how the deposit should be allocated, they will tell the scheme, which will pay out the money as agreed

If using one of the insurance based schemes your landlord will keep the deposit but pay a premium to an insurer. At the end of the tenancy, if you and your landlord agree how the deposit should be divided, the landlord returns all or some of the deposit.

 

Landlord hasn't paid into a scheme?

If you think your landlord has failed to protect your deposit and has failed to provide you with the prescribed information within the 30 days, you can apply for a court order requiring the deposit to be safeguarded or to get the information about the scheme in which the deposit is safeguarded.

If a court believes that the landlord has failed to comply with these requirements, or the deposit is not being held in an authorised scheme, the court may order your landlord to return or protect your deposit and could also order the landlord to pay the tenant a fine of up to three times the deposit amount within 14 days of the making of the order.

The tenant may sue the landlord at any time within 6 years from the date the deposit was taken, so even if your tenancy has come to an end and you have moved out, you are still able to apply for a court order.

 

To avoid disputes over the return of your deposit:

  • Agree with the landlord in writing BEFORE you sign the agreement exactly what the deposit will cover

  • Obtain a receipt for the deposit

  • Insist that the landlord agrees an inventory with you before you move in. You can check the against the inventory when you move out

  • Take photos as evidence of the condition of the property when you move in

  • Before asking for your deposit back at the end of the letting ensure that you replace any broken or missing contents, repair any damage and clean up. Your landlord may legitimately spend part of your deposit on professional cleaning services if the property is left dirty and untidy

  • Check meter readings when you move in and move out

Have a dispute about a tenancy deposit, or unsure where you deposit is protected? Talk to us!

Contact our Advice Team

 

Further Information

  • For template letters you can send to your landlord if they haven't protected your deposit, see Unipol
  • If your deposit isn't protected visit Shelter