Deposits

A landlord is entitled to charge a refundable deposit as security against the tenancy. It is separate from rent payments; and is refunded after the tenant has moved out, the keys have been returned and the landlord has checked the property. A landlord may make deductions from a deposit to cover the cost of any repairs or damage that result from the negligence of the tenant, including any necessary cleaning.

The Tenancy Deposit Protection scheme was introduced on 06 April 2007 and covers all deposits, for assured shorthold tenancy agreements, taken on or after 06 April 2007.

The aim of the scheme is to ensure all tenants receive part or all of their deposit back if they are entitled to it, provide an arbitration service in the event of a dispute, and encourage landlords and tenants to make a clear agreement at the start of the tenancy on the condition of the property.

The landlord has fourteen days from taking the deposit, to safeguard it with one of the schemes and provide the tenant with prescribed details of how the deposit is being protected. These include:

• The contact details of the chosen tenancy deposit scheme
• The contact details of the landlord
• Information explaining the purpose of the deposit
• How to apply for the release of the deposit
• What to do if there is a dispute about the deposit

Further information regarding these schemes can be obtained as follows:

• The Deposit Protection Service - Custodial Scheme
• mydeposits - Insurance Based Scheme
• The Dispute Service Limited - Insurance Based Scheme