Tenancy Deposits and Protection Schemes
Security Deposits and Payments in Advance
Landlords will almost certainly require a security deposit, payable prior to the start of the tenancy. This is so that if the property is not returned in a satisfactory condition, the landlord can recoup the cost of repairs. Assuming the property has only been subjected to normal wear and tear, the full deposit is returned to the tenant.
Most landlords require one or more months’ rent to be paid at the commencement of the tenancy. This is because most agreements stipulate that rent is paid in advance. It is therefore important to budget with this in mind, and to ensure receipts are obtained for all transactions.
As a way of protecting tenants, the government has made it mandatory for all landlords to put their tenant’s deposit in one of the tenancy deposit protection schemes. Through these schemes, tenants are assured of getting back their deposits. The deposit must therefore be put in one of the schemes within a period of thirty days after being received.
If your property is in England or Wales, then you can register with one of the following schemes:
• Tenancy Deposit Scheme
• Deposit protection scheme
Northern Ireland and Scotland however have different tenancy deposit schemes. Click here to learn about the laws in Scotland.