Tenancy Deposit Protection Scheme for tenants
Are you a tenant renting from a private landlord?
Had problems getting your deposit returned?
If the answer to these two questions is yes, then you will need to be aware of new laws coming into force from 6th April 2007 which will require your landlord to protect your deposit.
Any deposit money you pay to your landlord from the 6th April 2007, must be placed with an approved scheme. This won’t apply if you have already paid your deposit before this date on an existing assured shorthold tenancy.
There are two schemes your landlord can choose to use. The Insurance Based Scheme and the Custodial Scheme. If there is a dispute over the return of your deposit then it will be passed to an Alternative Dispute Resolution service. This is an independent person who will decide if your money should be returned. Your landlord must give you legal information about which scheme they have used within 14 days of paying your deposit.
As a tenant it is important that you ask for a receipt from your landlord when you pay your deposit as this is your proof that you’ve paid it.
It will be good practice for your landlord to use inventories and schedules of condition. These are records about the property telling you what furniture is included and what standard the property is in eg chipped paint on doors. This will help both you and your landlord know what condition the property is in at the start of the tenancy.
Penalties
If the landlord fails to look after your deposit and place in the approved scheme or fails to inform you about it, they will be unable to use the two month notice that asks you to leave the property. As a tenant you will be able to apply to the County Court by filling in the appropriate form, to order the landlord to either repay the deposit or order the landlord to pay the deposit into one of the two schemes. Your landlord would also be ordered to pay you three times the level of the deposit.
The reason for this new law is to encourage good renting practice so both landlords and tenants know their interests are protected.
Further information can be obtained from the following the links provided in the right hand panel, 'other useful websites'.
The tenancy deposit protection scheme for landlords
Urgent information for landlords concerning the tenancy deposit protection scheme. New laws came into effect on 6th April 2007.
Last updated: 22 June 2007
