Tenancy deposit rules under the Renters’ Rights Act haven’t actually changed, but tenants’ powers to challenge unfair landlord behaviour have, so it’s worth a refresh of your responsibilities as a landlord around deposits for the sake of tenant relations as well as compliance.
Protecting deposits
In England you must hold your tenants’ deposit in one of three deposit protection schemes – the Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme – within 30 days of receipt. Within the same timeframe, you should also provide tenants with prescribed information about the deposit, including where it’s held, how to apply to get the deposit back and what tenants should do in the case of a dispute.
What happens if you don’t protect the deposit?
If you don’t protect your tenants’ deposit, they can apply to their local county court for compensation by paying a court fee of £387, a cost which can be claimed back from you. The court may order repayment of the deposit to the tenant or payment into a TDP scheme within 14 days and can also order a repayment of up to three times the original deposit. Failure to protect the deposit can also give tenants the right to stay in a property.
Talk to your tenants first
At the end of the tenancy you (or a representative such as an independent checkout clerk) should attend the property with the tenants to confirm the property’s condition and agree whether any money should be deducted. If your tenants don’t want to attend, you should at least be able to prove you invited them. If you fail to reach agreement on any deposit deductions you can use one of the three TDP’s free dispute resolution services to settle the claim, but self-resolution is encouraged first.
The dispute process
Both parties must agree to the dispute process. However, the burden of proof lies with you to prove that your deposit claims are legitimate and fair, and the cash remains the tenant’s and not yours until the adjudicator rules otherwise. The dispute is handled through an online portal that allows you and your tenant to submit relevant evidence.
An independent adjudicator will then assess the evidence to judge whether “on a balance of probabilities” the tenant has breached their tenancy obligations and whether the landlord has suffered or will suffer loss as a result. Only the evidence provided will be judged.
Submitting evidence
Evidence should include a copy of the tenancy agreement which details the agreed contract, as well as check-in and checkout inventory reports signed by the tenant. Without both of these key pieces of evidence, your claim will likely be rejected. Signed periodic inspections also provide evidence that you have responsibly maintained the property during the tenancy and help strengthen your case.
If you are claiming for repairs, replacements or cleaning (the latter of which should only be to the same standard as the start of the tenancy), you should provide itemised receipts for the work incurred. Estimates and quotes will weaken your claim. Date-stamped photographs, correspondence with your tenant and witness statements can also be submitted as evidence.
Proof that damage goes beyond fair wear and tear should also be submitted, such as evidence of the item’s age, original condition and expected lifespan. You cannot claim the full cost for having any part of your property, fixtures and fittings returned to the condition at the start of the tenancy. The length of the tenancy and the number and age of occupiers is taken into consideration when assessing ‘fair wear and tear’ – a family of five with pets living in a property for five years will obviously incur more reasonable wear and tear than a single person in a property for one year.
The final decision
Once all evidence has been submitted and accepted you and your tenant will be sent a timescale for the adjudicator’s review and final decision and deposit award. Upon starting the review process you agree that the adjudicator’s decision is final and binding, however an appeal can be requested within 28 days if you can prove that a factual or legal error was made.
We Can Help
At Progressive Lets, we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. We are also an HMO specialist. Get in touch to find out more.
