Deposit, tenancy deposits, how, where and why

deposit

First things first, what is even a deposit?

When you start renting a property, the landlord must assure that if anything bad happens to the property, such as broken furniture or anything missing, they are covered for at least a part of the expenses. This is why most of them ask for a months rent in advance, which they will give back, which is called a tenancy deposit.

What is the best amount to have as a tenancy deposit?

Most landlords charge a months rent. This is because if they charge less than that, they wouldn’t be able to make repairs if anything happens. Usually the ones that charged less than that got burnt, because tenants who are looking for really or no deposit at all are tenants who usually cause the most breakage to the houses they rent. However, some landlords charge two months rent just because they have really valuable things in the house. You will find that in more luxurious houses, or at really careful landlords.

How to make sure you get it back as a tenant

Well, the landlord must put your deposit in government authorised scheme. This is by the Law:

In England and Wales you can register the deposit with:
-Deposit Protection Service
-MyDeposits 
-Tenancy Deposit Scheme
If you don’t rent your home on an assured shorthold tenancy, your landlord can accept valuable items (for example a car or watch) as a deposit instead of money. 

So how does this work?


First, the landlords register the deposit on one of the schemes above. Then, they give you the information so you could log in on the schemes and check if your amount is there. At the end of the tenancy, they will conduct a checklist and if you were a good tenant, they will give you the deposit after you checked out in a few business days.

Fail to comply with  the steps and landlords will pay between one and three times the  amount.

Your landlord must return your money within 10 days of you both agreeing how much.

More, here.

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