The Tenancy Deposit Scheme Tenants Guide
What you need to know:
The Tenancy Deposit Scheme was established to offer greater protection to tenant’s deposits. Whilst the vast majority of landlords are reliable and honest when returning deposits, this scheme has been set up to crack down on the more unscrupulous landlords who either delay the repayment or don’t return them at all.
Frequently Asked Questions:
Why should the Government protect tenants’ deposits?
To ensure that when a deposit is paid, the tenant has the guarantee that it will be returned, minus any reasonable deductions (i.e. damage etc). This hasn't always been the case, in fact almost 40% of the complaints Manchester Student Homes received last year were to do with the non return of deposits!
What sort of tenancies will deposit protection apply to?
Assured Shorthold Tenancies (ASTs) - the most common form of contract in England and Wales and more than likely, yours.
When does the Tenancy Deposit Scheme come into effect?
From 6th April 2007- upon signing a tenancy agreement on or after this date, the landlord is legally required to protect your deposit.
How will the deposit protection work in practice?
There are two types of scheme - a custodial scheme and an insurance based scheme; it's the landlords decision which one to use but practically speaking, it shouldn't have an effect on you or your deposit.
Who decides which scheme is used?
The landlord, not the tenant, must choose which scheme to use.
So, what happens with my deposit when I hand it over?
The landlord will have 14 days to safeguard a deposit from the day that s/he receives it. The landlord must then notify the tenant(s) which scheme has been chosen and provide prescribed information about the scheme within these 14 days.
How will it affect us students?
Where student accommodation is let under an assured shorthold tenancy, the deposit must be protected (placed into the tenancy deposit scheme). Halls of Residence are not let on an assured shorthold tenancy if they are controlled by the University, however, some Universities lease their halls of residence to private companies, who may in turn let the accommodation on an assured shorthold tenancy.
What happens if a parent pays the deposit?
If the deposit being paid is for an assured shorthold tenancy, it will still need to be protected in this scheme - it really makes no difference who pays it!
I'm an overseas student, what happens when I go home?
Schemes will be able to return deposits into foreign bank accounts, although a charge for doing so would be incurred by the tenant.
When must deposits be paid back?
When the landlord and tenants agree how the deposit should be returned, in full or in part, it must be paid back within 10 days (maximum) as follows:
- In the custodial scheme - within 10 days of the scheme being notified of agreement between the landlord and tenant;
- In the insurance based scheme - within 10 days of the tenant requesting that the landlord return his deposit
What happens if the landlord and tenant do not agree on the amount that should be returned?
Both schemes have an Alternative Dispute Resolution (ADR) service. If a dispute occurs and both the tenant and the landlord agree to use the ADR service, the decision of the ADR will be final and the case will not need to be referred to the courts. The court would only be involved if both parties do not agree to use the ADR service.
Maximising your deposit
- When moving in, take a written inventory and photographs. Look out for any damage or “wear and tear”
- Ensure that all rent has been paid by every member of the household
- Provide the landlord with a copy of your final utility bills
- Get your Council Tax Exemption forms from Student Services (if you're a University of Manchester Student, the Student Services Centre will forward your University ID and address to the City Council but it's up to you to go in and ask them to do this)
- Try not to damage the property
- Before you leave tidy and clean the property- this should minimise cleaning bills
- Essentially, fulfilling all contractual obligations
If you have any further queries concering this scheme, please contact our housing officer by clicking here.