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SECURITY DEPOSITS

Property security deposits are a valuable way for landlords to protect their interests. The deposit is normally equivalent to one month's rent and retained in a Government approved Tenancy Deposit Scheme to ensure probity. The deposit should be paid to the landlord prior to the tenant occupying the property and adequate time allowed for clearance of funds prior to occupation. The landlord should pay the deposit into the Tenancy Deposit Scheme within 14 days.

Forfeiture of all or part of the deposit in the event of losses incurred by the landlord is often contentious; accordingly the landlord should ensure the following:
  • Adequate cover within the letting contract for the retention of deposits.
  • A full and complete inventory prior to occupation and on vacating.
  • A detailed condition check at occupation and on vacating.
  • Regular inspections of the property which should be specified in the letting contract.
  • A detailed rent book or well maintained accounts.
In the event of retention of the deposit, evidence should be retained in case of future disputes as to the justification for the retention.

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