Is your deposit safe?
The Tenancy Deposit Scheme explains your rights as a tenant in keeping your desposit
Brighton letting agent, Direct Residential, recently closed without warning, leaving many tenants and landlords confused and uncertain about what was happening with their tenancies and their money.
At the Tenancy Deposit Scheme (TDS) they have received many calls from tenants concerned about the deposits they have paid and whether they will be able to get their money back. The average deposit in England and Wales is £979, so tenants have every right to be concerned, and cases such as this recent one show how important it is for tenants to be sure that their deposit is safely protected.
“Deposits remain protected for up to three months if an agent closes”
It is the law for landlords to protect tenancy deposits with an approved scheme such as TDS. The schemes allow for deposits to be retrieved by the tenant if the agent or landlord goes out of business or loses the money, and there is also a free, impartial dispute resolution service which can be used if tenants believe that deductions from their deposit are unfair.
Is your deposit protected?
It is very important that you know whether or not your deposit is protected. Deposits on assured shorthold tenancies must, by law, be protected within 30 days and tenants must be given ‘prescribed information’– details of how and where their deposit is being protected including a leaflet from the scheme. Landlords who don’t do this face a potential penalty of up to three times the value of the deposit.
If you are unfortunate enough to encounter a rogue landlord or agent who fails to protect your deposit, it may be very difficult to get your money back if they lose or misuse it so make sure you are clear from the start.
If you are unsure if your deposit is protected, check the paperwork you received at the beginning of the tenancy. You can also contact your landlord, or visit housing charity Shelter’s website (www.shelter.org.uk) which has details on all available tenancy deposit protection schemes and how to check if your deposit is registered with them.
What if my landlord is keeping my deposit unfairly?
When your tenancy ends your agent or landlord should aim to return the deposit money owed to you as quickly as possible, and justify any deductions they have made with evidence such as inventories, photos, or receipts. Usually no problems occur, but if you think the landlord is keeping money unfairly you can refer the disagreement to your tenancy deposit protection scheme and an impartial adjudicator will decide how the deposit should be divided.
What if Direct Residential held my deposit?
The Tenancy Deposit Scheme wrote to all Direct Residential’s landlords and tenants who had deposits protected by TDS with instructions on how to go about claiming deposit money back. Deposits remain protected for up to three months if an agent closes, so it is important that you and your landlord are clear on what action to take within that time.
Whoever your letting agent or landlord is, as a tenant it is essential that you know your deposit is correctly protected. Handing over your deposit money to an agent or landlord who does not protect it is a big risk and could leave you out of pocket later on.
For more information on tenancy deposit protection contact the Tenancy Deposit Scheme
on 0845 226 7837 or visit www.tds.gb.com
