{"id":9405,"date":"2016-12-21T10:19:22","date_gmt":"2016-12-21T10:19:22","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=9405"},"modified":"2018-02-14T11:22:54","modified_gmt":"2018-02-14T11:22:54","slug":"everything-you-need-to-know-about-tenant-deposits-as-a-landlord","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/everything-you-need-to-know-about-tenant-deposits-as-a-landlord\/","title":{"rendered":"Everything You Need to Know About Tenant Deposits as a Landlord"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p>In the UK there are about two million private <a class=\"wl-entity-page-link\" title=\"Landlord\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/landlord\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/landlord;http:\/\/rdf.freebase.com\/ns\/m.02mx_6;http:\/\/dbpedia.org\/resource\/Landlord\" >landlords<\/a> who <a class=\"wl-entity-page-link\" title=\"rental\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/renting\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/renting;http:\/\/rdf.freebase.com\/ns\/m.01y857;http:\/\/dbpedia.org\/resource\/Renting\" >rent<\/a> out about five million <a class=\"wl-entity-page-link\" title=\"Property\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/property\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property;http:\/\/rdf.freebase.com\/ns\/m.05wrt;http:\/\/dbpedia.org\/resource\/Property\" >properties<\/a>. Ownership of each of these properties brings an opportunity but it also carries a responsibility. Tenants aren\u2019t just people to make money out of; landlords must also show them a level of care too.<\/p>\n<p>One of the most obvious ways in which we can see this is with <a class=\"wl-entity-page-link\" title=\"Leasehold estate\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/leasehold-estate\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/leasehold_estate;http:\/\/rdf.freebase.com\/ns\/m.03jg1x;http:\/\/dbpedia.org\/resource\/Leasehold_estate\" >tenant<\/a> deposits. The money put down by renters when they take a property has to be handled correctly and this was explicitly spelled out by new regulations which needed to be met by last summer.<\/p>\n<p>So, given that this is a responsibility you must take seriously, what do you need to know about tenant deposits?<\/p>\n<h2>Tenancy Deposit Schemes<\/h2>\n<p>As <a href=\"https:\/\/www.gov.uk\/deposit-protection-schemes-and-landlords\/overview\">the Government states<\/a>, landlords have to place a tenants\u2019 deposit into a tenancy deposit protection (TDP) scheme if they rent out a <a class=\"wl-entity-page-link\" title=\"homes\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/home\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/home;http:\/\/rdf.freebase.com\/ns\/m.01l0mw;http:\/\/dbpedia.org\/resource\/Home\" >home<\/a> on an <a href=\"https:\/\/www.thehouseshop.com\/tenancy-agreement \" title=\"assured shorthold tenancy\">assured shorthold tenancy<\/a> \u2013 the <a class=\"wl-entity-page-link\" title=\"Contractual term\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/contractual-term\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/contractual_term;http:\/\/yago-knowledge.org\/resource\/Contractual_term;http:\/\/rdf.freebase.com\/ns\/m.02rfhkx;http:\/\/dbpedia.org\/resource\/Contractual_term\" >terms<\/a> on which most buy-to-let tenancies are run &#8211; that started after April 6 2007.<\/p>\n<p>There are three schemes in England and Wales that you can sign up to (Scotland and Northern Ireland have their own schemes). These are:<\/p>\n<p>*<a href=\"http:\/\/www.depositprotection.com\/\">Deposit Protection Service (Custodial and Insured)<\/a><\/p>\n<p>*<a href=\"http:\/\/www.mydeposits.co.uk\/\">MyDeposits<\/a><\/p>\n<p>*<a href=\"http:\/\/www.tds.gb.com\/\">Tenancy Deposit Scheme<\/a><\/p>\n<p>The money must be paid into one of these schemes within 30 days.<\/p>\n<h2>What if you don\u2019t do this?<\/h2>\n<p>Failure to do this will result in a fine. There is actually no limit to the amount that landlords could be fined but it is calculated at three times the initial deposit taken which means that the figure is likely to stretch to several thousands of pounds.<\/p>\n<p><a href=\"http:\/\/www.telegraph.co.uk\/finance\/personalfinance\/investing\/buy-to-let\/11560292\/New-landlord-deposit-rules-eight-need-to-knows.html\">The Telegraph reports<\/a> how deposit protection was actually set up as a compulsory scheme back in 2007 as a way to mediate disputes that can arise at the end of a tenancy. At this point, however, it wasn\u2019t clear whether landlords with existing tenants would need to register or whether it would just be those starting from scratch. However, a court later decided that it <em>should <\/em>apply to all tenants, including those who moved in before that date.<\/p>\n<p>It all means that this is an essential part of the process to cover your back \u2013 just as you need to <a href=\"https:\/\/www.simplelandlordsinsurance.com\/\">find some insurance that will protect your property<\/a> in any eventuality.<\/p>\n<h2>What happens at the end of the tenancy?<\/h2>\n<p>Deposits have to be paid back to tenants within 10 days of an agreement being reached between both parties. This agreement should cover any amount that might need to be deducted if the property has not been left in a satisfactory condition.<\/p>\n<p>If there is a dispute over this, the money stays in the scheme and is protected until the matter is resolved.<\/p>\n<h2>What about a holding deposits or those paid by third parties?<\/h2>\n<p>Sometimes tenants will pay a \u2018holding deposit\u2019 in order to reserve a property. These are treated differently and do not have to be protected.<\/p>\n<p>If, however, a deposit is paid by another person \u2013 such as the person\u2019s parents \u2013 it still needs to go into a TDP scheme.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the UK there are about two million private landlords who rent out about five million properties. Ownership of each of these properties brings an opportunity but it also carries a responsibility. Tenants aren\u2019t just people to make money out<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/everything-you-need-to-know-about-tenant-deposits-as-a-landlord\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":9408,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[10],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2016\/12\/TD-schemes-image.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/everything_you_need_to_know_about_tenant_deposits_as_a_landlord","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/9405"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=9405"}],"version-history":[{"count":3,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/9405\/revisions"}],"predecessor-version":[{"id":14458,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/9405\/revisions\/14458"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/9408"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=9405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=9405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=9405"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=9405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}