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► Deposits
Deposits and Tenancy Deposit Schemes
As of April 2007, when a tenant has signed a short hold tenancy agreement (which most students have) then government legislation means that their Landlord must use one of a small number of tenancy deposit schemes. Your Landlord should give you information about where your deposit is being protected within 14 days of receiving it.
How does the scheme work?
Start of a new tenancy
At the beginning of a new tenancy agreement, students should pay their deposit to their landlord or agent as usual. Within 14 days, the landlord or agent is required to give details about how the 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
What if students haven't received that information?
If students haven't been given that information, they should ask their landlord ‘how is my deposit protected?’ You can also check online with the main scheme's and find out - check out www.myseposits.co.uk for more information.
Both types of scheme offer a free dispute resolution service to reduce the need to rely on the small claims courts.
* If you have signed joint tenancies and your combined rent is above £25,000 for the year you’re deposit may not be protected in the same way.
What can Landlord's deduct from a deposit?
The landlord holds the money throughout the tenancy and they are entitled to deduct money for expenses incurred in relation to your tenancy, providing you are responsible. These expenses usually cover:
· damage to the property e.g. broken windows.
· damage to fixtures and fittings such as furniture/carpets.
· cost of cleaning the property to return it to a 'lettable' condition.
· re-decoration costs e.g. if a room has been painted without permission.
· cost of replacing keys if they were not all returned.
· any outstanding rent - one to watch on joint tenancies.
· cost of removing any rubbish from the house or outside.
The landlord/agent can make additional charges if there are specific clauses in a contract. These may include:
· cost of cutting the grass if the student liable for the garden.
· administration charges if rent was late.
· replacing any missing items e.g. curtains/furniture
What the landlord/agent can not charge for is fair and wear throughout the tenancy. For example, if a carpet is shabby when someone moves in and the landlord/agent wants to replace it, he can only do so at the Tenants expense if they have damaged it, e.g. an iron burn. Even then, if the carpet was due for replacement they should not pass on the full charge for replacement but a small percentage.
* Note that this is why it's so important to get photographic evidence of any damage and to make sure that any damages and anything in poor condition is noted on an inventory.
Property Damage
Your landlord can only deduct as much as is needed to repair or replace what you have damaged on a 'like for like' basis. So, if you break an old armchair, you shouldn't have to pay for a brand new one. As with cleaning, you should not be penalised for normal wear and tear.
Owing your Landlord rent
If you still owe rent when you leave, your landlord is entitled to deduct this from your deposit. If you owe more than the value of your deposit your landlord can take you to court to get the money back.
If you are thinking of withholding the last month's rent in case the landlord refuses to return the deposit, bear in mind that you are legally liable to pay rent and your landlord could take you to court to recover it.
When should your deposit be returned?
You should get your deposit back at the end of your tenancy. Your tenancy agreement may say exactly when. It can take a few days, and some landlords refuse to refund your money until they get proof that you have paid all the bills.
Remember, when you’re almost ready to leave, to arrange to do an inspection with your landlord to check the contents of the property against the inventory. If there is no damage and your rent is up to date your landlord should be able to return your deposit.
If you didn't have an inventory at the start of the tenancy, or the one you have doesn't include detail, it may be difficult to prove that the landlord is keeping your deposit unfairly.
Deductions for Cleaning
Tenancy agreements often state that carpets and curtains must be clean when the tenant moves out. This does not mean that they have to be as clean as or cleaner than when you moved in. You are only required to clean any items soiled above normal wear and tear. If possible keep records and receipts for any intensive cleaning you do or pay for at the end of your tenancy.
What if my Deposit is not returned?
You should contact your Landlord in writing and ask for the return of your deposit or an itemised list of costs that have been deducted. You can use this deposit return sample letter as a guide to writing your own.
Dispute resolution
If, at the end of your tenancy you can’t agree with your landlord/agent over the amount of the deposit to be returned, or aren’t satisfied with the explanation for withholding the deposit, you can register the dispute using whichever scheme your deposit has been protected with
What can the Advice Service do?
The Student advisor can give students an impartial opinion about whether any deductions made from their deposit are reasonable.
The Student Advisor can help students put together letters to their Landlord regarding any disputes.
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