Landlords Keeping Tenant’s Deposits in Their Pockets

Posted on July 18th, 2008 | by John Glenn |

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A survey by The Deposit Protection Service (The DPS) found 62 per cent of landlords willing to admit openly to prospective tenants that they were not registered with any deposit protection scheme – as required by law. They are keeping the tenants deposits into their pockets.

The DPS found 62 per cent of landlords had not registered their deposits, 18 per cent were registered with The DPS, 14 per cent with other schemes – and 6 per cent were not aware they had to register. So, they are putting tenant’s deposits at a high risk, according to DPS.

Landlords need to understand that failing to register a deposit is quite simply an unlawful act. There are no two ways about it, and ignorance is no defence. There is no excuse for failing to properly protect your tenants’ deposits.

The DPS works by holding a tenant’s deposit, free of charge, for the term of the tenancy agreement. At the end of the rental period, the deposit, and a portion of the interest it has accumulated, is paid back to whoever is entitled to it. The remaining interest is used to fund the service. The DPS sends confirmation of a protected deposit direct to a tenant. If tenants are unsure if their deposit is protected they should ask their landlord for evidence.