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A landlord guide to tenancy deposits

property management A tenancy deposit letting agency
Picture of Donald Smith
Donald Smith

Founder and Co-owner

A tenancy deposit is a sum of money that is paid by a tenant at the start of a tenancy as a form of security for the landlord. Letting agency can help you with this by using a clear holding deposit service. The deposit is usually equal to one month’s rent, and it is held by the landlord or a third party (such as a deposit protection scheme) until the end of the tenancy.

Here are some things that landlords should consider when it comes to tenancy deposits:

  1. Use a written agreement: It is important to have a written tenancy agreement that clearly outlines the terms of the tenancy, including the amount of the deposit and the circumstances under which it can be withheld.
  2. Protect the deposit: Landlords are required to protect the deposit by either placing it in a government-approved deposit protection scheme or by holding it in a separate, interest-bearing account.
  3. Provide information about the deposit: Landlords are required to provide the tenant with certain information about the deposit, including the amount of the deposit, how it will be protected, and the terms under which it can be withheld.
  4. Use the deposit fairly: Landlords should use the deposit fairly and only withhold it for damages that are the tenant’s responsibility. Any deductions should be clearly documented and the tenant should be provided with an itemized list of damages and the cost of repairs.
  5. Return the deposit promptly: Landlords should return the deposit to the tenant as soon as possible after the tenancy ends, provided that the tenant has fulfilled their obligations under the tenancy agreement.

By following these guidelines, landlords can ensure that they are handling tenancy deposits in a fair and legal manner. For more information, please contact our letting agency experts.

If you prefer you can allow British Estates letting agency take all the hassle out of this by purchasing one of our Landlord property management packages.

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