When you rent a property, you may be required to pay a tenancy deposit before moving in.
That money can represent a significant amount, so tenants understandably want reassurance that their deposit is being held appropriately and will be dealt with fairly when the tenancy ends.
There are legal requirements concerning the protection of many tenancy deposits.
So, what should you do if you discover that your landlord may not have protected yours?
What is tenancy deposit protection?
For relevant private tenancies in England, landlords who take a tenancy deposit are generally required to protect it using a government-approved tenancy deposit protection scheme.
The schemes are designed to safeguard deposits and provide a process for dealing with disputes concerning how the money should be returned.
There are currently three government-backed tenancy deposit schemes in England: the Deposit Protection Service, MyDeposits and the Tenancy Deposit Scheme.
How quickly should my deposit be protected?
Where the statutory requirements apply, a landlord generally has 30 days from receiving the deposit to protect it in an approved scheme.
The landlord must also provide the tenant with certain prescribed information relating to the deposit and the scheme being used.
This information is important because it explains how the deposit is protected and what happens if there is a disagreement at the end of the tenancy.
How can I check whether my deposit is protected?
If you are unsure, start by checking the documents you received when your tenancy began.
You may have received a deposit protection certificate or information identifying the scheme where your money is held.
If you cannot find anything, the approved schemes provide ways for tenants to check whether their deposit has been registered.
Keep copies of any searches or correspondence concerning the deposit.
What if my landlord hasn’t protected it?
Failure to comply with tenancy deposit requirements can have legal consequences for a landlord.
Depending on the circumstances, a tenant may be able to make an application to the court.
Where the court is satisfied that the statutory requirements have not been complied with, it may order the landlord to repay or properly deal with the deposit and may also order the landlord to pay the tenant a financial penalty.
The amount that may be awarded will depend on the circumstances and applicable law.
What if my landlord protected it late?
Late protection should not automatically be treated as the same as complying with the original deadline.
If your landlord only protected your deposit after the required period had expired, it may still be appropriate to obtain advice about whether the statutory requirements were breached.
The individual circumstances and history of the tenancy will matter.
What if my landlord says deductions need to be made?
Deposit protection does not mean a landlord can never make deductions.
There may be legitimate disputes about unpaid rent, damage to the property, missing items or other matters.
However, a landlord should not simply treat the deposit as their own money.
If your deposit is held within an approved scheme, the scheme may provide a dispute resolution process where the parties disagree about deductions.
Evidence is particularly important.
Keep evidence throughout your tenancy
Don’t wait until you are moving out before thinking about evidence.
Keep your tenancy agreement, deposit documentation and payment records.
Photographs or videos showing the condition of the property when you moved in and when you leave can also be valuable.
You should retain inventories, check-in and check-out reports and correspondence with your landlord or managing agent.
If there is a disagreement later, these documents can help establish what actually happened.
Does an unprotected deposit affect possession proceedings?
A landlord’s failure to comply with deposit requirements can have wider consequences, including consequences for certain possession procedures.
However, possession law in England has undergone substantial changes, and the position will depend on when events occurred and the type of tenancy involved.
If you have received a possession notice and believe your deposit was not properly protected, seek advice on your specific circumstances rather than assuming the notice is either valid or invalid.
What should I do first?
Start by gathering your paperwork.
Confirm when you paid the deposit, how much you paid and who received it.
Check whether it was registered with an approved scheme and whether you received the required information.
If you believe the legal requirements were not followed, obtaining advice can help you understand what remedies may be available.
How Penerley can help
Disputes over tenancy deposits can involve more than simply deciding how much money should be returned at the end of a tenancy.
Penerley can advise tenants and landlords on tenancy deposit issues, residential tenancy disputes and possession matters.
If you believe your tenancy deposit was not properly protected or you are involved in a dispute about your deposit, contact Penerley to discuss your position.
