Tenants losing thousands of pounds in deposits every month

Posted under General by Michael

Tenants in the UK continue to lose huge deposits each month by failing to adhere to the tenancy agreements as per the Government authorised tenancy deposit protection scheme. The loss is estimated to be £15k per month.

The average amount of tenancy deposits protected under the scheme is £771. Nearly 12% of all deposit related disputes in July 2008 went in the landlords or agents favour. This meant that tenants were losing more than £15,000 every month by flouting terms of agreements.

Tenancy Deposit Protection (TDP) rules were made mandatory with objective to resolve disputes between landlords and tenants amicably. Effective April 2007, landlords are required to explain reasons and furnish evidence for withholding entire deposit or part of it. Landlords are not allowed to withhold deposits if tenants discharged their responsibilities and adhered to terms of agreement.

1. A few tips on how to keep deposits must always be kept in mind by the tenants.
2. Keep property in reasonably clean condition. Cleaning bills normally account for 38% in all the deposit related disputes.
3. Avoid any damage to white goods, furniture (especially if there are any expensive items, such as antique chairs or electrical goods) and property since costs for repairing are deductible from deposit amount.
4. Pay rent on time. If you are unable to pay on time get prior consent of the landlord. Failure to pay rent arrears would make you lose deposit.
5. Read the contract document carefully before signing and stick to its terms. The contract is legally binding and enforceable through courts.
6. Ensure that your deposit is protected as per the law. Landlords are supposed to furnish proof of protection to the tenants within 14 days of receiving deposit.

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