Is Your Tenancy Deposit Protected? by Tim Saunders

Tuesday, 17th February 2009

This is one of the biggest concerns that arise from moving into rented accommodation.

 

A tenancy deposit is a sum of money handed over to the landlord as security for payment of rent. When flat and house sharing, this sum is protected by legal regulations and the landlord needs to play by the rules and ensure your deposit is protected.

 

Who holds the deposit money?

TDP (Tenancy Deposit Protection) is one of a number of popular schemes which protect rent deposits. You can ask your landlord if he is registered with TDP or any other service that ensures the deposit is protected by law.

 

However, you will need to ensure (off your own back) that you get a receipt for the amount you’ve handed over and given the details of how it is being protected. The rules for use of rent deposit should also be mentioned in the contract or lease agreement that you sign. Otherwise, there’s no way of ensuring that your deposit will be legally protected.

 

How is my deposit protected when I’m sharing a house or flat?

When you’re sharing a rented property, the legal implications may not be very clearly defined.

 

If you’re a co-tenant having jointly signed the agreement with the landlord, the landlord has a legal responsibility to ensure your deposit is protected, as mentioned previously.

 

If your relation to your housemate is that of a subtenant, ensure you get receipts from your housemate in his position as head tenant. This is when you have a written or oral agreement with the head tenant regarding equally sharing space and facilities. You can approach the Tribunal in cases of dispute.

 

The Tenancy Deposit Protection can benefit both situations. You can visit http://www.depositprotection.com/ or see our 'Resources' section for more information about the TDP.

 

If you’re unsure about your deposit’s protection, ask your landlord what deposit protection scheme he has in place. Certainly before you sign anything, check that the contract contains clauses that protect your deposit.

 

How is my deposit utilised?

When you sign the contract, clarify what the deposit covers. Ask if it covers damages and cleaning as well or just the rent? Also, it would be a good idea to inspect the house or apartment before you move in so that you are not charged for any damages caused by a previous tenant.

 

Your tenancy deposit can be used by the landlord to cover losses arising as a result of breach of contract. For example, if for some reason you’re unable to pay the rent, your landlord can withdraw money from the deposit to cover it until you can establish a secure financial position and pay the rent again. In addition, if there are damages in excess of normal wear and tear, your landlord may deduct it from your deposit or charge you extra if the deposit cannot cover the charges.

 

In case of any dispute, consult an expert. You can file a claim with the court if you feel unjustly treated and can produce proof to substantiate your claims.

 

When do I get my deposit back?

This condition should be set out within the agreement or contract you’ve signed. Usually, a 30-day notice of contract termination should be given before you can start claiming your deposit back. Once you’ve decided to move out, check everything to ensure there are no damages that can be attributed to you. Even invite the landlord around for a walk-through before you move out. This prevents them from making any false claims for damages and allows both of you to move on with a mutual understanding.

 

Ask your landlord when you can expect repayment of your deposit. Legally, you are entitled to get your deposit back within 30 days of moving out, unless otherwise stated in your contract. If you haven’t received it, contact your landlord, remind him and ask him for an update. House sharing can be a logistical nightmare for landlords, so there may be a valid reason for the delay! However, if your landlord keeps delaying repayment of your deposit and all efforts on your part have failed, you should consider taking action with a solicitor.

 

It’s always good practice to keep the proper documentation, ie. bills and rent payment during your stay. This will strengthen your case if you ever need to go to court.