Tenants still losing £15,000 every month in lost deposits

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by Lin Freestone

Despite the implementation of a mandatory tenancy deposit protection scheme earlier this year, tenants are still losing approximately £15,000 in deposits each month by not sticking to tenancy agreements.

The rules were introduced to ensure a fair and balanced way for landlords and tenants to resolve any disputes at the end of a tenancy.

A government-authorised tenancy deposit protection scheme, operated by mydeposits.co.uk, reports that the average deposit protected is £771. During July,12% of all disputes found in favour of the landlord or agent.

Since the implementation of the rules, landlords have to give reasons and evidence if they withhold some, or all, of a deposit.

Around 38% of all deposit disputes involve the covering of cleaning costs after it is found a tenant has not kept the property in a clean and reasonable condition.

Repair costs for damage caused are an expected reason for the withholding of deposit cash, and it could sometimes be cheaper for a tenant to buy a replacement or get damage put right without involving the landlord.

But landlords do need to be informed if a tenant suddenly cannot pay his rent. By giving plenty of notice, a suitable repayment plan can often be arranged with a flexible landlord.

Tenants should ensure that they fully understand all the terms of the agreement they signed at the beginning of a tenancy. Not adhering to the agreed notice period is another common way a tenant can lose a deposit.

Mydeposits.co.uk reminds both tenants and landlords to be aware of their rights and responsibilities. It is a two-way relationship, and most tenancies end amicably, with landlords withholding deposits only where necessary.

Tenants can help this happen by acting according to the rules laid out in their agreements, ensuring that a landlord has no right to withhold their deposit.