Safe Deposit - April 2014

Posted on: April 14th, 2014 Category: Tenant News

By law, landlords must put a tenant’s deposit in a government-backed tenancy deposit scheme (TDP) if the tenant rents their home on an assured shorthold tenancy that started after 6 April 2007. These schemes are designed to ensure that tenants get their deposits back if they:

• meet the terms of the tenancy agreement
• don’t damage the property
• pay their rent and bills

The landlord or letting agent must put the deposit in the scheme within 30 days of receiving it.

At the end of the tenancy, the landlord must return the deposit to the tenant within 10 days of both parties agreeing how much they will get back.

If there is a dispute between landlord and tenant, then the deposit will be protected in the TDP scheme until the issue is sorted out.

The landlord doesn’t have to protect a holding deposit (i.e. money tenants pay to ‘hold’ a property before an agreement is signed). Once they become a tenant, the holding deposit becomes a deposit, which Landlords must protect.

There are currently 3 TDP options:

• Deposit Protection Service
• MyDeposits
• Tenancy Deposit Scheme

Turner Scott registers all tenancy deposits with the Deposit Protection Service’s custodial scheme.

If you are a tenant thinking of leaving your current rented property, please contact us for guidance on how to reduce the risk of deductions being made from your deposit.