DEPOSIT PROTECTION

MOST landlords ask tenants for a deposit equal to four to six weeks’ rent to cover damage to the property or unpaid rent. The deposit must be protected in one of three Government-approved deposit protection schemes: the Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme. These schemes all run dispute resolution services which can step in if the landlord and tenant cannot agree on deductions from the deposit at the end of a tenancy.

Landlords who fail to protect a deposit risk having to pay their tenants compensation of up to three times the deposit amount, and will not be able to evict them using a section 21 notice.