Tenancy Deposit Regulations - A Guide for Landlords

Posted on June 11th, 2008 | by John Glenn |

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As a landlord, you should always be alert to protect yourself against the financial impact that you may need to face after the damage of your property by the tenant. The tenants may refuse to pay for the damages or fight to get their deposits back from you. Since April 2007, it has been assured by the Government that the deposited money either should be placed in the hands of an approved third party or insured the money for tenant’s benefit. But this whole process can put burden on the landlord. But there are some options which can be adopted by the landlord to reduce the aggravated problems.

Do nothing: An unlikely option that a landlord can look for is not to take any deposit from the tenants and have faith on them that they will not damage your property. Unluckily, if it happens, they will pay you for the repair.

Use a designated deposit scheme: This scheme includes cost or offer no interest on the money deposited. When a tenant leaves the place, the supplement expenses for any damage will be made by them.

Use a ‘combined’ deposit scheme: unlike the designated deposit scheme, this combined deposit scheme includes fees that cover both membership and a charge on letting.

Any of the above options can be opted by landlords before commencing the tenancy that can help them to maintain a distance from any financial mishap in future.