Deposits

A tenancy deposit is a returnable payment taken by the landlord or agent. The tenancy deposit is taken to compensate the landlord in the event of any arrears on the rent at the end of the tenancy or to pay for repairing unreasonable damage or cleaning at the end of the tenancy.

The deposit should not be used to cover the cost of reasonable, fair wear and tear.

Any tenancy deposit taken in relation to Assured Shorthold Tenancies created after 6th April 2007 must be protected with a government-authorised protection scheme.

The schemes protect the deposit and offer a means to resolve disputes between landlords/agents and tenants in the event of any dispute.

These are the government-authorised deposit protection schemes:

• www.depositprotection.com
• www.tenancydepositscheme.com
• www.mydeposits.co.uk

The landlord or letting agent must protect the deposit with an authorised scheme within 30 days of the deposit being paid to them. They must then supply you with the following information:

• Amount of deposit
• Address the deposit relates to
• Landlord contact details
• Scheme name and contact details
• Leaflet on how the scheme works
• Repayment procedure
• Dispute procedure
• What happens if either party cannot be contacted
• Details of when all or part of the deposit can be retained

If the landlord or agent fails to protect the deposit with one of the schemes or to provide the deposit scheme details within 30 days of receiving the deposit, then you can apply to the County Court for the deposit to be protected or returned to you.

The court also has discretion to award you compensation of between one and three times the amount of the deposit.

At the end of your tenancy, your landlord will inform the deposit protection scheme that the tenancy has come to an end and how much deposit they think should be returned to you. You will then have a choice whether to accept this or to dispute it through the deposit protection scheme.

Landlords may want to take some of the deposit to pay for rent arrears or damage to the property which occurred during the tenancy.

You should check your tenancy agreement carefully to ensure that you understand what maintenance you are responsible for during your stay and what the landlord is responsible for.

If there is a dispute between you and the landlord or agent as to how much deposit should be returned, then you can use the Alternative Dispute Resolution (ADR) process operated by the tenancy deposit scheme.

They will look at the evidence provided by the tenants and landlord and then make a final decision on how much deposit is to be repaid to you.

If you or your landlord do not agree to use the ADR process, then the dispute must usually be resolved by the county court.

If you and your landlord agree on the amount that will be returned, then you should get the deposit back within 10 days of agreement.

• Check your inventory at the start of the tenancy, indicating any damage in the property. If the landlord does not provide an inventory, then write to them detailing any damage or faults.
• During your tenancy, always report disrepair or breakages to your landlord immediately, preferably in writing.
• Try to keep your property clean and tidy during the tenancy, as it is very difficult to remove months of rubbish and grime in one last big clean!
• Check your contract. Does it say the carpets need to be deep cleaned, or that all picture hooks need to be removed and filled in? If so, make sure these are sorted.
• Ensure nothing is missing or broken. Check the inventory thoroughly to make sure everything is as it should be and replace or fix as needed.
• Take dated photos as proof you've left the property in good order. These could be useful evidence later if a dispute arises over your deposit.
• Have a proper deep clean.
• Take final meter readings to make sure that you only pay for what you have used while you were living in the property.
• Return the keys to the landlord and ask for a receipt, or return the keys in the way the tenancy agreement asks you to do.