Understand your legal obligations and protect yourself
If you are a private landlord, by law you must retain your tenant’s deposit in a tenancy deposit scheme. Such a scheme protects the tenant’s deposit and prevents landlords from illegally withholding payment at the end of the tenancy. The scheme also allows landlords to deduct any costs that may need to be paid towards the property, such as damage.
A deposit must be paid into a deposit scheme within 30 days of receiving it. Failure to do so can result in penalties being taken against you, and possible further legal action. It is vital that you understand your legal obligations and protect yourself from incurring litigation costs.
The expert team at AST Assistance are here to help you to understand your deposit obligations as a landlord and the ways you can efficiently manage your property deposit.
For bespoke guidance on your tenancy and deposit circumstances, get in touch with our team today by calling us at 01706 619 954, emailing info@ast-assistance.com, or filling in our online form to request a call back.
How we can help
Property deposit management primarily covers the way in which a deposit is safely received and kept. The law and the responsibilities of landlords change often, so it is important that you understand your legal obligations as a landlord.
AST Assistance has helped landlords understand how to effectively manage their tenants’ property deposits, providing expert guidance for them to undertake their roles to the best of their ability.
Not only will we be at your side to allow you to manage your property deposits well, providing expert guidance to help you manage your property stress-free, but we will also use our extensive experience to ensure you understand your full legal responsibilities.
With our in-depth knowledge of property and tenancy laws, we have helped many landlords with their property deposit management, and have developed a streamlined process for providing support, leaving you best placed and informed to undertake your full landlord duties.
We give advice tailored to your situation and needs, so if you need bespoke advice on property deposit management, get in touch today.
What the law says
If you take a deposit and you are letting a property on an assured shorthold tenancy that started after 6th April 2007, you are now required to keep the money in a TDP scheme, as stated by official government legislation.
As above, you have 30 days to place the deposit into a scheme - failing to do so can result in government action. If this occurs, you will have to:
- Repay the deposit amount to the tenants.
- Pay the amount into a custodial scheme.
- Repay up to three times the deposit amount back to the tenants within 14 days.
FAQs
Where should I keep my tenant’s deposit?
As a landlord in England and Wales, you have the following three options:
- Deposit Protection Service (Custodial and Insured)
- MyDeposits
- Tenancy Deposit Scheme (Custodial and Insured)
What if I use a letting agent?
Even if you use a letting agent, it is your responsibility to put your tenant’s deposit in one of these government-approved schemes.
If this is not undertaken, liability will be placed on you and not the letting agent
Under what conditions do I give the deposit back to the tenant?
The deposit scheme dictates that the tenants must receive their deposit back if they met the terms of the tenancy agreement in full. Disputes and further issues often arise when a tenant has breached one of the conditions of the agreement, which can grant the landlord the right to deduct a fee from the deposit.
Most commonly, if the tenant caused damage to the property beyond reasonable wear and tear, the landlord is likely entitled to reduce the deposit fee.
Finally, if the tenant has also paid all rent and bills in full, their deposit must be returned.
Further guidance from deposit experts
If you encounter issues with your deposits, such as entering into a dispute, you should seek advice from property law experts, like the team at AST Assistance.
To speak to our team and receive tailored, on-demand advice from property deposit management experts, call us at 01706 619 954, email info@ast-assistance.com, or fill in our online form to request a call back.
