The Process and Purpose of Making a Deposit
One of the most common types of tenancy in the private rented sector is an assured shorthold tenancy. When embarking on such a tenancy, it is normal practice for a deposit to be taken and held by the landlord or letting agency until the end of the tenancy. Since 2007, it has been a legal requirement that this deposit be protected.
· The purpose of tenant deposit protection is to help raise standards in the letting industry. Tenants are afforded peace of mind that their deposit will be returned at the end of the tenancy, as long as they meet the terms of the tenancy agreement, pay their rent and bills and don’t cause damage to the property.
· By law, the deposit is always the property of the tenant. It is held by the landlord, or their agent, but must not be used to subsidise the landlord’s outgoings or expenditure, unless you specifically agree to this, or your tenancy agreement allows it.
· This ensures that your deposit is available to be returned to you.
Where will the Deposit be held?
There are 3 government-backed tenant deposit protection schemes that operate in England. Once landlords or letting agencies receive your deposit they have 30 days to place it into a Scheme. They must also give you documents that show where your deposit is protected and information such as contact details , reasons why your deposit may be withheld, what to do in the case of a dispute, and so on. Your deposit is then held securely until your tenancy comes to an end.
At the end of your tenancy, once you and your landlord agree on how much of your deposit is to be returned, this should be actioned within 10 days of your tenancy ending. However, if there is a dispute over this amount, your deposit continues to be protected until the issue is resolved. If necessary, disputes can be sorted by an impartial adjudicator, who will make a decision as to how much deposit should be returned based on the evidence provided.
All tenants entering into assured shorthold tenancies through Family Homes will have their deposit protected. Family Homes are letting agents in Sittingbourne. We have been in business for over 30 years and are the leading and largest independent specialists in property lettings and management in the area.
If you are looking to rent a property in these areas, feel free to pop into our offices in Sittingbourne or Faversham, or get in touch.