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Rent Deposit Schemes

Most tenants are required to pay their Landlords a deposit. As from April 2007 a deposit scheme was introduced. This requires a Landlord or their agent to put the deposit money in an approved scheme. There are 2 types of scheme, an insurance backed scheme and a custodial scheme.

Each scheme is supported by an alternative dispute resolution service which can be used in the case of a dispute as to the return of the deposit at the end of the tenancy..

The landlord must notify the tenant which deposit scheme they are using within 14 days of the tenancy starting.

The deposit scheme only applies to assured shorthold tenancies and private landlords and their agents.

At the end of the tenancy, the Landlord should check the property. If the Landlord wants to make any deductions then these should be agreed between the landlord and the tenant. The undisputed part of the deposit should be repayed to the tenant.

If you discover that the Landlord has not complied with the obligation to put the deposit in a scheme then the tenant can apply to the court for repayment of the money or an order that the landlord pay the deposit into the scheme within 14 days.

The Landlord is not entitled to recover the cost of putting the property in the condition it was before the tenancy. This is because the landlord cannot recover the cost of fair wear and tear. The Landlord can recover the cost of damage to the property over and above what one would expect from normal living.