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Introduction
Acknowledgements
Acknowledgement is given to LG Regulation and ANUK for source material.
Crown Copyright material is reproduced with the permission of the Controller of HMSO and the Queen's Printer for Scotland.
Introduction to Subject
Most landlords nowadays will take a 'damage deposit' from tenants to hold for the duration of the tenancy. Any deposits taken with an AST since 6th April 2007 have to be protected in one of three government-authorised deposit protection schemes.
This subject will explain the factors to take into account when deciding how much to ask for as a deposit. It will also explain how tenancy deposit protection works, at both the start and end of the tenancy. It is not intended to cover the specific rules of each scheme. Once you have selected a scheme, the specific rules to that scheme should be obtained from the provider.
An alternative option to taking a deposit is to ask for a guarantee from a third party (such as a parent or the local authority) that they will cover any costs arising to the landlord from rent arrears or damage to the property. This can be particularly useful where the tenant is on a low income and may have difficulty putting together an amount of money for a deposit.
Finally, if a tenant is very interested in taking a property a landlord may want to ask for a holding deposit to secure the property for that tenant until any reference checks are complete and a tenancy agreement is signed. A holding deposit does not have to be protected in a tenancy deposit scheme unless it is subsequently used as a tenancy deposit. This course will introduce you to good practice in taking holding deposits.
** See Additional Resources for a Guide on what may be deemed fair Wear and Tear and a NEW Guide, written by all three Schemes, on Alternative Dispute Resolution**
Please Note: Changes to these rules and procedures came in on 6th April 2012. These pages have been updated, and you can also see the section at the end of this subject outlining all the changes.
Legislation
Resource 1 of 12 in Tenancy Deposits