Deposits

Deposits are held by landlords as a security against any damage caused by the tenant and any unpaid rent at the end of the tenancy.

If you wilfully or negligently damage the property or furniture then the landlord is quite entitled to recover his or her reasonable costs in making good the damage.

However, if the damage results from normal, everyday, wear and tear then the landlord is not entitled to deduct any money from the deposit. It is assumed that part of the rent that you pay covers such expense.

In order to try and avoid later disputes, it is always a good idea to check the inventory when you first move it and ensure that you keep a copy. If one is not provided you may wish to make yourself and send a copy to the landlord for agreement.

Alternatively, if you leave the property in a poor state of cleanliness [assuming that it was in a clean condition when you took the tenancy], then the landlord is entitled to deduct the cost of reasonable cleaning from your deposit.

If however you do clean the property before you leave and leave it in the state that you found it, then the landlord is not entitled to deduct any money from your deposit.

From 6th April 2007 a new law came into effect to help protect your deposit, if you are an assured shorthold tenant. Any deposit paid to the landlord or letting agent after 6th April 2007 must now be protected by a tenancy deposit scheme.

If you have already paid a deposit and your landlord asks you to sign a new tenancy (for example if the fixed term of your last tenancy has expired), your deposit must be protected by the tenancy deposit scheme.

The purpose of tenancy deposit schemes are to assist in resolving disputes about deposits. There are 2 types of scheme and it is up to your landlord to decide which one to use.

Your landlord has a legal obligation tio provide information to you within 14 days of you payign the deposit. The information must include the landlord or agent's contact details, the details of the tenancy deposit scheme where your deposit is held and information about how to get your deposit back at the end of your tenancy.

If your landlord does not give you this information within 14 days, you can apply to the county court for an order requiring the landlord to return the deposit to you or protect it in one of the schemes. The court will also order that the landlord pays you compensation of 3 times the amount of the deposit.

If the landlord fails to provide you with the information about your deposit then s/he will be prevented from evicting you using s21 Notice Requiring Possession at the end of the fixed term of your tenancy.

At the end of your tenancy you shold get your deposit back within 10 days, if you agree with the landlord the amount to be returned. If you cannot reach an agreement, the scheme where your deposit is held will offer a dispute resolution service for free.