One of the most common things we come across are mistakes around the handling or protecting of a tenant’s deposit, and yet if this important aspect isn’t handled correctly, it can have huge implications for landlords.

Here are the key things you need to know:

• Firstly, as a result of the Tenant Fees Act, all tenancies begun or renewed after 1st June 2019, can only hold a deposit that equates to a maximum of five weeks rent.
• You have 30 days from receipt of payment, to protect the deposit within one of the three Government approved schemes. Remember, it is the receipt of payment, not the start of the tenancy – this is a common oversight.
• You must serve the tenant with the prescribed information – this includes information such as the address of the property, deposit amount, how it is protected, details of the scheme and dispute resolution service as well as outlining the reasons you may keep some or all of the deposit.
• Failure to comply with regulations can result in a fine of up to three times the deposit amount as well as repayment of the original deposit and invalidate a Section 21 notice.
• At the end of the tenancy, you must handle the deposit return within 10 days of when the tenant requests the deposit back. Any deductions you intend to take must be outlined clearly with detailed reasons behind them.
• Deductions should always be fair and reasonable and grounds for doing so can include:
  • • Cleaning
    • Damage
    • Redecoration
    • Missing items
    • Gardening
    • Rent arrears
    • Unpaid utilities
• If a dispute arises over proposed deductions, you can use your deposit scheme provider’s dispute resolution service to help reach a fair resolution.

If you would like some advice on this topic or any other matters, we welcome you to book a consultation call with one of our letting experts.