Tenant Deposit Schemes
From 6 April 2007, all deposits (for rent up to £25,000 per annum) taken by landlords and letting agents for Assured Shorthold Tenancies in England and Wales, must be protected by a tenancy deposit protection scheme.
What is the deposit for
The tenancy agreement between the Landlord / Letting Agent and the tenant will normally go some way to describe the state of the property and what is expected of the tenant in looking after the property.
You should allow for fair wear and tear, perhaps decide on a nominal lifespan of any carpets and certain fittings. The inventory will go some way to define the condition of the fixtures and fittings.
Can I retain money from the deposit
In an ideal world the tenant - as they often do - will leave the property as they found it, allowing for fair wear and tear.
In the event that there is damage that the landlord regards as covered by the deposit, this can normally be paid for through the deposit. The tenant will normally have an opportunity to dispute this and there is normally a free dispute resolution service that is provided by the tenancy deposit scheme.
In some cases the tenancy agreement might state that overdue utility bills may be paid from the deposit, invariably after the landlord is able to retain their own costs if necessary. In this latter case, this can help avoid a bad credit rating being associated with the property.
Something to also consider is that in some cases, tenants will withold the final rental payment or a proportion of it, walk away from the property under the assumption that the last rental payments will be made from the deposit. The problem will then arise in retaining the deposit, the deposit is assumed to be held for the tenant, not the landlord!
Statement from the Landlords Association: "To penalise all landlords into handing over deposits is ridiculous. Some rogue landlords do exist but far more rogue tenants disappear owing rent and damages."
Useful Links:
Direct.gov: Tenancy Deposit Protection
The Tenancy Deposit scam
Tenancy Deposit Scheme Update
Landlords hit out at "heavy-handed" tenancy deposit (22 March 2007) |
