All prospective tenants will pay a deposit prior to taking occupation of a property. The deposit is held for the duration of the tenancy to safeguard against potential breaches of the tenancy agreement by landlords or tenants, covering such things as damages, cleaning or outstanding rent.
Deposit monies can be a contentious issue however there are a number of steps both a landlord and tenant should take to ensure the return of the deposit when a tenancy comes to an end. A comprehensive tenancy agreement and inventory report before the start of a tenancy are crucial to avoid possible disputes at the end of the tenancy.
Tenancy Agreements
The tenancy agreement establishes the contractual obligations agreed between both parties in relation to their tenancy. The tenancy agreement is a comprehensive and constantly evolving document that ensures both landlord and tenant are adequately protected.
Inventory Reports
A detailed inventory report showing the condition of the property and its contents should also be completed at the outset of any tenancy. An impartial report completed by a qualified inventory clerk carries considerable weighting should there be any disagreement as to the condition of the property. With this in mind estate agents including Foxtons arrange these reports on behalf of the landlord for impending tenancies in some cases.
Landlords should take into consideration fair wear and tear when determining deductions to the deposit and should take into account the length of the tenancy, the age and quality of items/areas, its condition at the start and the number and type of occupants. They must also ensure that they do not end up either financially or materially in a better position than they were at the outset of the tenancy.
Only a small amount of tenancies end in formal dispute and the majority of deposits will be released back to the tenants within ten days from the end of the tenancy, once written confirmation from both parties agreeing on the final state of the property is received. Disputes can usually be avoided by ensuring that all involved have realistic expectations as to what condition the property should be returned in and all deposit schemes agree that the majority of disputes are resolved simply by the landlord and tenant getting involved in a proactive discussion about the deposit at the end of the tenancy.
Deposits at Foxtons...
Deposits are held by Foxtons which protects the deposit for the tenant. All Assured Shorthold Tenancy (AST) deposits must be protected with a government approved tenancy deposit scheme within 30 days of receipt and tenants are provided with key information of how it is protected. This is known as the `prescribed information' and failure to issue this can result in a fine of up to three times the value of the deposit and it invalidates certain legal notices required to bring a tenancy to an end
Further information regarding the deposit scheme Foxtons works with can be found at www.mydeposits.co.uk
Why use Foxtons to manage my property?
Want to learn more? Read our Getting Deposit Back guide.
