When taking a deposit from a tenant for an assured-shorthold tenancy in England and Wales, landlords must place the deposit in a tenancy deposit protection scheme within 30 days.
The terms of the schemes protect both landlords and tenants. Deposits can only be released by mutual agreement, meaning that landlords are able to retain a fair amount of the deposit if their property is damaged, and tenants are protected from landlords who try to withhold their deposit without good reason.
The landlord must provide information about the deposit protection, such as:
- What the purpose of the deposit is
- Which tenancy deposit scheme they use and its contact details
- The landlord/agents’ own contact details
- How to apply to retrieve their deposit and information about resolving disputes – all schemed offer a dispute resolution service free of charge.
Landlords who do use a tenancy deposit scheme face paying compensation which can range from the deposit amount to up to three times the sum.
It is vital that landlords conduct an inventory of the property both before and after the tenancy starts, so that they have proof of any damage claims.
Landlords must also be aware that deposits for any assured-shorthold tenancies which started before April 2007 will need to be part of a protection scheme.
Further information about tenancy deposit schemes is available on the Government’s website here.
How Nelsons Can Help
Paula Haverkamp is a Paralegal in our Dispute Resolution team specialising in landlord and tenant issues and property disputes.
For further information about tenancy deposit protection schemes, please contact a member of our team on 0800 024 1976 or via our online form.