Refundable Tenancy Deposit
A deposit is payable by the Tenant to insure the Landlord against the risk of any dilapidations to the property or contents which occur as a result of the tenancy. The Landlord is only entitled to compensation when there is a lack of care or damage beyond fair wear and tear to the Landlord’s property or when additional cleaning is necessary in order to return it to the original condition.
For properties that are managed by CP, in line with legislation, CP will lodge the deposit with a Government approved scheme, which will hold the deposit as an independent stakeholder not representing either Landlord or Tenant (If the Tenancy Deposit Scheme [TDS] is used then CP will hold the deposit as an independent stakeholder.) Where a property is not managed by CP it is the Landlord’s obligation to protect the deposit and to supply ‘terms and conditions’ for whatever scheme is being used. Along with a lot of agents, most Landlords will use the Government approved scheme of deposit protection known as The Deposit Protection Service (DPS).
Full details will be given to the Tenant. The deposit cannot therefore be utilised for any other purpose such as outstanding rent and (unless CP advise otherwise) the deposit will remain in the same scheme throughout the tenancy. Subject to a deduction for the cost of any dilapidations, upon agreement of those deductions from both Landlord and Tenant, the balance of the deposit will be returned to the Tenant. Please be aware that where the tenancy is being taken by 2 or more people, any repayments due will, unless confirmed otherwise in writing, be made only to the ‘lead tenant’ (the first signatory on the Tenancy Agreement).
Whilst the vast majority of tenancies managed by CP end harmoniously, should a dispute arise over the justification or proportionality of a deduction which cannot be resolved, the matter will be passed over to the Scheme’s resolution service. The scheme’s resolution service will then consider the circumstances impartially and after due deliberation issue their ruling.
The Three Government Approved Schemes
- Deposit Protection Service (DPS)
- Tenancy Deposit Scheme (TDS)