What is a deposit?
- A deposit is a sum of money that is paid to your landlord at the start of your tenancy. It provides a safeguard for your landlord in case you damage the property or leave without paying the rent or bills.
- The deposit is a one-off payment in addition to your rent. It should be paid back when you leave unless you have damaged the property or have left without giving notice.
- Most landlords charge a deposit that is the equivalent of one month's rent. It is illegal for a landlord to charge more than the equivalent of two month's rent.
What you should do if you pay a deposit at the start of your tenancy?
- As when you hand money over to anyone, you must get a receipt.
- It is a good idea to take photographs of the property at the beginning and the end of your tenancy so that you have evidence of the condition of the landlord's property in the case of a dispute.
- You should ask your landlord to complete and sign an inventory listing all the fixtures and fittings in the property and detailing their condition at the start of the tenancy. Make an inventory yourself (this is a pdf document). This will ensure that it will be easier to resolve any potential disputes with your landlord over the return of your deposit once you have left the property.
Your rights
Your landlord can only withhold an amount from your deposit to cover any financial losses he has suffered as a result of:
- Damage to the property
- Unpaid rent
- Missing items belonging to the landlord
- Cleaning
Damage to the property does not include ‘fair wear and tear'. So, for example, if a carpet became threadbare due to use over a long period of time - this would constitute fair wear and tear and your landlord could not recover the cost of a new carpet from you. However, if you burnt a hole in the carpet this would constitute damage and your landlord would be entitled to withhold an amount from your deposit for the cost of replacing/repairing the carpet.
If your landlord does withhold an amount from your deposit to cover financial loss, he can only withhold a reasonable amount to compensate him for any amount paid out. If the costs of recouping any losses are less than the full deposit, he must return the remainder of the deposit to you.
Your landlord cannot withhold an amount from your deposit for any other reason than financial loss - such as making noise or having friends to stay.
Your landlord cannot withhold an amount from your deposit for the costs of re-letting the property - unless you ended your tenancy early without giving appropriate notice.
For tenants who have started their tenancies and paid a deposit after 6th April 2007
From 6th April 2007, when you pay a deposit, your landlord or agent must protect it using a government authorised tenancy deposit scheme. This is to ensure that:
- You get all or part of your deposit back, when you are entitled to it and
- Any disputes between you and your landlord/agent will be easier to resolve.
At the beginning of a new tenancy agreement, pay your deposit to your landlord or agent as usual. Within 14 days, the landlord or agent is required to give you details about how your deposit is protected including:
- The contact details of the tenancy deposit scheme
- The contact details of the landlord or agent
- How to apply for the release of the deposit
- Information explaining the purpose of the deposit
- What to do if there is a dispute about the deposit
The three Tenancy Deposit Schemes are:
Tenancy Deposit Solutions Ltd
3rd Floor, Kingmaker House
Station Road
New Barnet
Hertfordshire
EN5 1NZ
Telephone: 0871 703 0552 [8.30am to 5.30pm Monday-Friday]
fax 08456 34 34 03
web: www.mydeposits.co.uk
email: mailto:info@mydeposits.co.uk
The Tenancy Deposit Scheme
The Dispute Service Ltd
PO Box 1255
Hemel Hempstead
Herts
HP1 9GN
Telephone: 0845 226 7837
Fax 01442 253193
e-mail
mailto:deposits@tds.gb.com
The Deposit Protection Service
The Pavilions
Bridgwater Road
Bristol
BS99 6AA
Telephone:0870 7071 707
email: enquiries@depositprotection.com
Ask your landlord which scheme is protecting your deposit.
What should you do if your landlord or agent hasn't protected your deposit?
You can apply to your local county court. The court can order the landlord or agent to either repay the deposit to you or protect it in a scheme. If your landlord or agent has not protected your deposit, they will be ordered to repay three times the amount of the deposit to you. Get advice if you think this applies to you.
What happens when I move out?
At the end of the tenancy, check whether you are leaving the property and its contents in the condition in which it was let to you - allowing for fair wear and tear - and check that you have paid your rent and any other expenses. Then agree with your landlord or agent how much of the deposit should be returned to you.
Within 10 days you should have received the agreed amount of the deposit.
Resolving disputes
When you move out, if you and your landlord or agent can't agree how much of your deposit should be returned, there will be a free service offered by the scheme protecting your deposit to help resolve your dispute. Check the information your landlord or agent gave you at the beginning of your tenancy for details.
Ending your tenancy
Your landlord cannot give notice to end your tenancy after the end of the fixed term, until he has protected the deposit and told you how it is protected.
For tenants who started their tenancies and paid a deposit before 6th April 2007
Tenants who entered into a tenancy prior to 6th April 2007 will not have the right to have their deposit protected by a Tenancy Deposit Scheme except in limited circumstances.
If your tenancy began before 6th April 2007, and you think that your landlord has withheld your deposit unreasonably, you will need to follow a different procedure to recover the amount:
What to do
You must first write to your landlord asking that responds in writing detailing why he has withheld the deposit and including any receipts for amounts spent on returning the property to the same condition it was in when it was let to you. You should ask your landlord to respond to this request within a reasonable timescale (e.g. 14 days).
If you do not receive a satisfactory response from your landlord within this timescale, you should write again to advise that if you do not receive a response within a further timescale, then you will pursue a Small Claim in Court to recover the amount outstanding.
The Small Claims procedure is relatively straightforward. You will need to complete a form called a N1 form detailing how much you want to recover from your landlord, and why you think he has unreasonably withheld it. You will need to pay a fee into court to pursue the claim. You should obtain evidence to support your claim, for example photographs of the property showing the condition of the property when you left, an inventory detailing the conditions of items in the property at the commencement of your tenancy, any receipts for items you may have replaced and copies of any correspondence with your landlord. A District Judge will decide whether your landlord should return the full amount to you, or whether he can recover some or all of the deposit. For more information about the small claims procedure:
The Court Service website - small claims and The Court Service - link to N1 form: www.hmcourts-service.gov.uk/
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Information Provider:
Manchester Advice
This information is for guidance only and is not an authoritative statement on the law. Please read our Terms and Conditions.
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