Is your tenancy deposit protected? It should be. If you are a tenant you want to know it is and if you’re a landlord without a registered deposit then the consequences are serious.
In April 2007 the Government introduced Tenancy Deposit Protection under the Housing Act of 2004, a scheme designed to protect tenant deposits. Since 2012 it has been law for a landlord (or agent acting on behalf of a landlord) to protect any deposit received within in 30 calendar days for all assured shorthold tenancies. The key is in the word ‘received’. Not thirty days after the check clears, or 30 days from the beginning of the tenancy but the day the tenant makes the payment to the landlord or agent. And, if you fail to comply with your legal obligations, there are two possible sanctions:
- You cannot end the tenancy or regain possession of your property under a section 21 of the Housing Act 1998 until the deposit had been repaid or a court case has ended.
- Your tenant can apply to a County Court to receive compensation between one and three times their deposit’s value if:
- They think their deposit is not protected.
- They’ve not received information about the scheme you protected their deposit with.
There are three deposit protection schemes in the UK. The aptly named DPS (Deposit Protection Scheme) which we use here at Sure Lettings Gloucester, the TDS (Tenancy Deposit Scheme) and My Deposits. All have varying services they offer but essentially once you have registered yourself with a scheme it should be a free service to register the deposit. Although the onus is on the landlord to register the deposit, tenants should be mindful to double check they’ve had confirmation that their deposit has been registered, after all it’s a lot of money you’re handing over and you want to know you’re going to get it back at the end of your tenancy.
So, whether you are tenant or landlord there is an obligation to be responsible when it comes to protecting the tenancy deposit. But how do tenants ensure they protect their deposit during the tenancy and how do landlords ensure they can make genuine claims from the deposit at the end of the tenancy, if necessary? Here’s our 5-step guides for tenants and landlords on how to keep your tenancy deposit protected:
Tenants
- Hold your landlord to account: As we’ve just discussed above, ensure you check your landlord or agent has registered your deposit. Ask for correspondence with a recognised tenancy deposit scheme. You should be given documents to sign at the time you sign the tenancy agreement and an email should be sent to you to confirm your deposit has been registered. If you haven’t heard within 14 days, chase up your landlord or agent.
- Double-check at the check-in: If you are renting through an agent you are likely to have a check-in on the day you move into the property. They may give you a document called an inventory, detailing the contents and the condition of the property. Take time to go through this carefully and make any notes of damage (marks, scratches, dirtiness) etc. before you move in and get those comments back to the agent or landlord within 7 days. It sounds laborious but damaged not noted on the inventory might become attributable to you at the end of the tenancy and your landlord may ask to have repairs paid from your tenancy deposit. If you are renting privately and you don’t have a check-in then take some time to go around the property and make your own notes. Email those over to your landlord so you have a paper trail of when you reported any damage/dirtiness you’ve noticed.
- Nothing beats photographs: Whether you have an inventory with photographs included or not, take your own photos on the day you move in. If you have a camera which can date them, even better, if not email them to yourself to document the day you took them. It may not seem that important on the day you’re trying to move your furniture into the property, however, it will certainly come in useful at the end of the tenancy. When you move out the agent or your landlord will carry out a check-out of the property and note any dirtiness and damage and if you have evidence of what the property looked like when you moved in, you have a much better chance of fighting any claims against your deposit.
- Keep on cleaning: I doubt there are many of us that enjoy cleaning, however, little and often is a good way of keeping the condition of your rental property in good order. All deposits schemes take into account ‘fair wear and tear’, however, stains on carpets and dirty ovens are commonly where landlords make claims on the deposit.
- Report any damage: You may want to avoid telling your landlord about damage you have caused but it’s much better to fess up and keep your deposit in mind. You never know, your landlord might have landlord’s insurance which will cover the damage and if not, and you know it’s your fault, perhaps you can come to some arrangement over the costs to get the damage fixed.
Landlords
- Register the deposit: We’ve already gone over it above but don’t put it off! We have experienced landlords desperate to get their property back but have had to wait until the tenant gives notice.
- Get an inventory: It may seem like a costly outlay to pay between £75 and £150 (depending on the size of your property) to get a professional inventory carried out but it’s like an extra insurance policy. By documenting the exact condition of the property at the time your tenant takes occupancy, you have the evidence to provide to the deposit protection scheme at the end of the tenancy, should you need to make a claim.
- Make regular inspections: You don’t want to invade your tenants’ privacy and make a nuisance of yourself but you should want to take a regular interest in the condition of your rental investment. However, not every landlord feels comfortable with inspecting their rental property so at Sure Lettings we offer quarterly inspections with our Management Service. We also provide our landlords with a report of the condition of the property and any relevant photos. Building up a picture of the progression of the condition of your property whilst your tenants are in residence will help you if necessary should you need to make any deposit dilapidations at the end of the tenancy.
- Build rapport: If you are open with your tenants they are more likely to come to you if they cause any damage. They may be responsible and you may want them to pay but sometimes damage (like a leak on the living room ceiling) may need attending to urgently and sorting it at the time will cause less damage, expense and hassle in the long run. If your tenants can’t afford to pay for the repairs you could agree in writing that it will come from the tenancy deposit at the end of the tenancy. Again, if you don’t feel you’re a people person then talk to us about what our management service can offer you.
- Accidents happen (get insured)! Landlord’s insurance is relatively cost effective, easy to organise and could save you thousands in the long run. Tenants are responsible for insuring their contents but not the fabric of the property. We once had a property where a pipe burst on a bath and flooded a ground floor flat with two inches of water throughout. It was nobody’s fault, the pipes were behind the bath panel and the tenant was away for the weekend. Luckily the landlord had insurance which was fortunate as the property was inhabitable for eight weeks and it was the landlord’s responsibility to provide alternative accommodation for the tenant. Thankfully the insurance company provided an hotel for the tenant which would have cost a fortune to the landlord on top of repairs to the flat.
If you are in the process of renting out your property and would like further advice or guidance regarding anything discussed on this week’s blog or would like to discuss the services we offer to act on your behalf, please don’t hesitate to contact the team on 01452 31099, email us at gloucester@surepropertygroup.com or call into our offices on Worcester Street for an informal and no-obligation chat.
We look forward to hearing from you.