Property owners can sometimes fall victim to bad tenants who do not take care of the premises. As a landlord or landlady, you have the right to keep back part or all of the deposit they gave you when moving in, but they also have the right to challenge that decision in court, drawing the situation out into a court case when all other avenues have failed.
To protect both sides in the event of a dispute over the return of a deposit, the UK government set up the Tenancy Deposit Scheme in 2007.
What Is It?
The Tenancy Deposit Scheme protects tenants against the problems of unscrupulous property owners and property owners against problems caused by former tenants. For short tenancy agreements, the property owner is required by law to put the deposit money into the scheme within a month of receiving it. At the end of tenancy, he or she must return the agreed amount within ten days of both the former tenant and property owner reaching an agreement on how much is to be returned. The property owner is obliged to tell the tenant which scheme the money is in and should give a Tenancy Deposit Protection Certificate to the tenant.
At the end of the tenancy, if there is a dispute, either party can refer the case to the Tenancy Deposit Scheme. They will then seek information from the provider and appoint an adjudicator who will make a legally binding decision with 28 days of the dispute being raised. No further reply from either party is treated as consent and any money paid out will be allocated within ten days of the decision.
The scheme exists for two main functions:
- To protect only the deposit (not rent) of a shorthold tenancy
- As an arbitration service in case of a dispute
Shorthold tenancies exclude when the tenant is a business, where annual rent exceeds £100,000, where the tenancy is for a holiday let and university owned accommodation letting to enrolled students. All other tenancy types are eligible for the scheme.
Authorised Providers
There are a few options for landlords and most are reputable companies. If you are looking for a service provider, ensure that the one you are considering using is one of the many government-authorised providers - such as DPS and My Deposits. These are the preferred services of many landlords and agencies, having already helped millions of people across the country since their foundation.
- My Deposits is run as a joint venture by one of the country’s biggest insurance providers and the NLA (National Landlords Association).
- DPS promises a lifelong protection of any money deposited in one of their schemes, being the only company that presently makes this assurance.
The sites for My Deposits and DPS have lots of useful information. If you’re ever unsure about information you find on the web, at these sites or anywhere else, there are dedicated gov.uk sites that can help with any questions or queries about your rights and responsibilities as a property owner with regard to deposits and deposit protection.