3 Steps to take if you paid or have taken a deposit

Tenancy deposits can be that one hurdle that can prevent a tenant securing long term accommodation. On the other-side it can cause problems for landlords if they do not deal with deposits properly. We have an in depth guide on the matter here but below are three steps you should take.

Step 1: Keep Receipts

Whether you are a tenant or a landlord you should keep receipts of the deposit and every time rent is paid. The safest way would be to have rent paid via bank transfer with a description. This will mean both parties will have logs of amounts, dates and reason. This will help in cases of rent arrears, service charges and exact date of the deposit being paid which can be vital.

Step 2: Inventory

A written inventory (with pictures – ideally time stamped) should be made when the tenant moves in and at regular intervals during the tenancy (if lengthy).

This should then be compared with an exit inventory when the tenancy ends. This providing evidence if there is any damage to the property or items within.

The same should be done if any repairs are carried out during the tenancy and receipts kept of the same.

Step 3: Ensure the deposit is protected

With the recent changes and strict guidelines set by the Court of Appeal (see here) it is vital that the strict time frames are adhered to and 1) confirmation of protection, 2) certificate of protection and 3) prescribed information (including any information booklets) are given to the tenant (and to the “relevant person” if someone else paid the deposit). Keep track of this information by a Recorded Delivery receipt or getting the tenant to sign they have received the said documents.

It is NOT the estate agencies duty to do the above but the landlords and if the above steps are not done the landlord cannot serve a valid s21 notice and will be open for a claim for up to 3 times the deposit amount.

Conclusion

Taking the above 3 steps should ensure smooth sailing for both parties and if trouble does occur there should be enough evidence on both sides to help any dispute.

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