A tenancy deposit helps protect your property against dilapidations and we take this payment from tenants prior to moving in. We use the government-approved DPS (Deposit Protection Service) Custodial scheme where the deposit is kept secure until the end of tenancy.
We’ve put together a few FAQs below to explore what’s involved in tenancy deposit administration.
When a tenant moves into a property, they must pay a deposit equivalent to 5 weeks’ rent (capped as such under the Tenant Fees Act 2019) which must be registered in one of the deposit protection schemes. This deposit is held for the duration of the tenancy. Once the tenant has paid the deposit to us, we set up a tenant record with the Deposit Protection Service by entering details of the property including rent and deposit amount along with the name, contact number and email address of each tenant and the duration of the fixed period of the tenancy. Once this record is set up and we have transferred the deposit to the custodial service, a record will be created that the tenant can view to show that their deposit is held correctly.
When a tenant vacates a property, a checkout is completed to determine if it is necessary to make a claim from the tenant’s deposit. We will provide a breakdown of any deductions along with the reasons why. DPS will then contact the tenant to ask them to agree or disagree to each deduction. If a tenant disagrees and wants to offer a lesser amount they will need to give their reasons. A tenant could dispute the whole amount and choose to use the dispute resolution service. A landlord could then agree with the lesser amount if a tenant counter offers or agree to forego any amount claimed or to agree to use the dispute resolution service. An independent adjudicator would then take on the case and using evidence provided by us such as the original inventory and check out report, any quotes or invoices. The tenant would be given an opportunity to provide any evidence to substantiate their dispute. Their decision would be final, and the deposit distributed accordingly once complete.
At the end of the tenancy, we would complete the check out to gather evidence necessary for any claim. We will then liaise with the landlord to establish if they wish to make any claims against the deposit and if so, obtain necessary quotes. We would then inform the tenant of any deductions and add these onto their DPS record in order that they can agree or dispute. If the landlord does not wish to make a claim, DPS would be instructed to repay the tenants deposit in full.
