Protecting Your Deposit: Everything You Need To Know
When you rent a property, most landlords will ask for a deposit (usually one month’s rent). It provides added protection for your landlord in case you cause any damage to their property or leave it in an unclean condition.
In this guide, we’ll cover everything you need to know about tenant’s deposit rights and the steps you can take to ensure you get your entire deposit when you move out.
What are the deposit rights for tenants?
When you pay a security deposit for your rental property under an assured shorthold tenancy agreement, the private landlord is required by law to protect it in a government-approved tenancy deposit protection (TDP) scheme. After you've paid your deposit, your landlord or letting agent must put it into a TDP scheme within 30 days of receiving it.
In England and Wales, there are three deposit protection schemes your landlord can be registered with:
The landlord can either transfer your deposit money to the approved scheme provider (a custodial deposit scheme) or hold on to the deposit themselves and pay to insure the amount (an insured scheme). This ensures landlords can’t unfairly withhold your deposit at the end of the tenancy.
If they want to make any deductions that you don’t agree with – for instance, if they say you caused damage that you believe is simply wear and tear – the matter will be passed over to the scheme adjudicator, who will use the check-in and check-out inventories as evidence and make a final decision.
If there is no damage to the property, you’ve paid your rent and bills, and you’ve followed the tenancy agreement, you should receive your full deposit back (we’ve got some tips on this below). Your landlord should return your deposit within 10 days of you both agreeing on how much you’ll get back.
What can you do to ensure that you get your deposit back?
Now you know what the government does to protect your deposit, it’s time to learn what you can do to keep your deposit safe and ensure that you get all of it back after you move out. Here are some key things you can do to ensure there are no retentions at the end of the tenancy.
Look after the property
That might sound obvious, but some tenants make the mistake of thinking that their landlord’s insurance will cover any damage, so they don’t need to worry about it. Even if your landlord does have insurance cover, if they can prove the damage was caused by you during the tenancy, they will probably look to deduct the cost of repairs from your deposit rather than make a claim on their insurance.
Deal with or report any minor damage as soon as it occurs.
If something is accidentally damaged and is easily replaced, it’s likely to be cheaper for you to have it repaired or replaced right away rather than waiting months or even years for your landlord to make a deposit deduction at the end of the tenancy. And if it’s something like minor redecoration, you may even be able to do it yourself. But it’s important to make sure your landlord or agent is happy with your solution and that it is worth getting any agreement in writing.
Take out accidental damage insurance cover.
While contents insurance will only cover your own possessions, you can take out additional cover that will pay out in case you accidentally damage your landlord’s property or contents. Read more in our article, ‘Tenant insurance: what is it and why do you need it?’
Leave the property as clean as you found it.
Even though there will be some natural wear and tear over the course of the tenancy and there may be some damage, you are still obliged to leave the property in the same state of cleanliness as when you moved in. If you don’t, you may be charged for a professional cleaning, which could run to over £200 for a one-bedroom property.
Cleaning is one of the biggest reasons for deposit disputes, so make sure you thoroughly check the property and ensure it’s clean and tidy before you leave. You should also take pictures or videos of the cleaned property as evidence in case there’s a dispute.
Deposit replacement insurance by Lets Insure
Finding the money for a deposit can be a real challenge for renters, especially when a deposit can be up to the equivalent of 5 weeks' rent. The good news is that there is an alternative solution.
At Lets Insure, we offer deposit replacement insurance, which acts as an alternative to a traditional tenancy deposit and has major benefits for both tenants and landlords. Instead of paying a deposit (which could be up to 5 weeks' rent), you pay a small non-refundable fee (approximately one week’s rent). This then covers the landlord if there’s any damage to the property, so they don’t require a typical deposit.
Find out more about the benefits of deposit replacement insurance for landlords and tenants of our site.
Also see our article ‘Why checking and signing the inventory is crucial’
What Is Landlord Rent Guarantee Insurance, How Does It Work And Why Do You Need It?
