Preston Goldburn advise on deposit schemes and disputes

30-06-2011

Lisa Walker, property lawyer with Key Network member firm Preston Goldburn, shares her knowledge on the best way to resolve disputes relating to residential rental deposits.

If you are renting a residential property and your tenancy agreement was entered into on or after 6th April 2007, your deposit is protected by legislation designed to prevent landlords from unfairly refusing to return some or all of it to you at the end of the tenancy.

What happens with the deposit?

The landlord must place your deposit into one of three government authorised tenancy deposit schemes (the Deposit Protection Service, MyDeposits and the Tenancy Deposit Scheme) and give you details of the chosen scheme (including how it works and how the scheme provider can be contacted) within 14 days of you handing the deposit over.  If he/she doesn’t, then you should ask for this information.

What can be deducted from the deposit?

Sums relating to breaches of the tenancy agreement, for example the cost of repairing damage to the property, unpaid rent or bills, and necessary cleaning.

What if there is a dispute about deductions?

If you and your landlord cannot agree on any proposed deductions, then you can ask the deposit scheme provider’s adjudicator to make a ruling.  The decision of the adjudicator will be binding on both parties and can only be challenged through the Courts.

All three schemes providers have recently jointly published a useful booklet – ‘A Guide to Tenancy Deposits, Disputes and Damages’ – which you can view or download by following a link from each scheme provider’s website.  The guide gives useful advice about how to lodge a dispute, what kind of evidence will be needed and the issues which the adjudicator will consider in making a final decision.

It is worth knowing that the deposit is always regarded as belonging to you unless successfully claimed by the landlord.  That means that you don’t have to prove your case - the onus is on the landlord to prove his/her claim for deductions arising from breaches of the tenancy agreement and if that claim fails to convince the adjudicator, then the disputed amount must be returned to you.