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Many landlords are still very confused how to protect the deposit, or they protect it to late because they have been counting 30 days from the date the tenancy started not from the day deposit was paid.

There has been a lot of discussion of late over fees and bills that landlords can charge tenants. New regulations are expected to be announced in 2019 but there have been many changes and developments for landlords to contend with over the last two years. One of the most prominent issues for landlords is the deposit for the rental accommodation, and there are very clear guidelines on the protection of deposits, but many landlords still think that protecting the deposit is enough, but without following the correct procedure, landlord may still face a penalty!

Any rental agreement on an assured shorthold tenancy which began after the 6^th of April 2007 requires a landlord to place the deposit into one of the Government backed Tenancy Deposit Protection schemes, a TDP.

Landlords in England and Wales can choose one of the following options to register a deposit:

Deposit Protection Service
MyDeposits – including deposits that were held by Capita
Tenancy Deposit Scheme

One of the most important reasons that landlords must use these schemes is that they provide tenants with added security. If a tenant abides with the tenancy agreement, including paying bills on time and not causing any damage to the property, the tenant is entitled to receive their deposit back.

Landlords must learn how to protect deposit sums

Landlord must place the deposit into one of the selected schemes within 30 days of receiving the deposit from the tenant, and the tenant must be informed of which scheme is being used. Both schemes offer Insured and Custodial protection and landlord can choose which one he is going to use.

When using custodial protection, landlord send money to deposit company, with insured landlord can keep the deposit. Both protection require different documentation to be provided to tenants, which is confusing to some landlords, so it is important landlords follow the right procedure. If documents are served incorrectly, landlords may still receive penalty even they have protected the deposit!

At the end of the tenancy, the landlord must provide the deposit to the tenant within 10 days of agreeing how much of the original deposit will be returned.

TDP schemes provide comfort to tenants

If there is a dispute between the landlord and tenant, the deposit will be protected by the relevant TDP scheme until the issue has been resolved. It is important that tenants are aware that there may be a time limit for them to raise a dispute with respect to a deposit.

As a lettings market specialist in Brixton and London, I am always on hand to offer guidance and advice on this matter. If you would like any help in this matter, please get in touch.