Tenancy Deposits
The law requires landlords to make sure that all deposits for Assured Shorthold Tenancy’s are paid in to an approved scheme within fourteen days of receiving the deposit.
There has been some movement in the law with regard to deposits and it is likely that they will be the subject of further case law over the next twelve months. It seems clear that the Courts consider the existing rules harsh and would like to find ways of giving well intentional landlords the benefit of the doubt. Having said this, the rules are still in place and still do require landlords to make sure that all deposits for AST’s are paid in to an approved scheme within fourteen days of receiving the deposit. Landlords are also still required to provide the tenant with written notice that the law has been complied with.
The authorised Schemes are:
1. The Deposit Protection Service (DPS)
They will hold the deposit for you 9free to use and quick and easy to set up)
0870 707 1707
www.depositprotection.com
2. My Deposits (MD)
An insurance based scheme where landlords hold their own deposits
0871 703 00552
www.mydeposits.co.uk
3. The Tenancy Deposit Scheme (TDS)
An insurance based and dispute resolution scheme
0845 226 7837
www.tenancydepositschemes.net
Failure to protect the deposit may result in you being ordered to repay the deposit to the tenant and to pay the tenant up to three times the value of the deposit by way of compensation. This position is significantly better for landlords than was the case six months ago.
Disputes
You can use their free dispute resolution service but be aware that the DPS are finding that landlords are often unable to justify the deductions they want to make from deposits. It is important to remember that a deposit it not intended to provide a new for old insurance. Tenants are not expected to leave a property exactly as they found it – fair wear and tear is inevitable. Having said this, it is disappointing if you cannot claim for unreasonable dirt or damage. The best way of maximising your chance of being able to claim back the deposit is to ensure that you have clear evidence of the state of the property and its contents at the beginning of the tenancy.
• Keep all receipts for furnishings and fittings to help prove age and quality.
• Take photographs.
• Maintain a written description of the state of things in the inventory.
The Inventory should not merely be a list of items. You will also need evidence of the problems at the end, for instance, photographs, quotations and receipts. If you have any concerns about the information you are recording, you may want to consult an independent inventory provider. We can put you in touch with one if you would like.
For information about deposits and any other landlord/tenant queries, please do not hesitate to contact Emma Morris or Louise Walker at our York office on 01904 624185.
Emma Morris
Louise Walker
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