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Deposits

Historically, landlords have often abused a tenants deposit using any excuse under the sun to avoid paying it back, many landlords actually considering it income! This bit tells you what schemes are out there to look after your deposit.

There are two types of tenancy deposit protection scheme available for landlords and letting agents (insurance-based schemes and custodial schemes). All schemes provide a free dispute resolution service. Student Homes Farnham keeps your deposit in a government scheme called “mydeposits”.

What are Tenancy Deposit Schemes?

The schemes allow tenants to get all or part of their deposit back when they are entitled to it and encourage tenants and landlords to make a clear agreement from the start on the condition of the property.

The schemes:

There are two types of tenancy deposit protection scheme available for landlords and letting agents. All schemes provide a free dispute resolution service.

Insurance-based schemes

Within 30 days of receiving a deposit the landlord or agent must give the tenant the details about how their deposit is protected including:

At the end of the tenancy:

If for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it

Custodial schemes

Within 14 days of receiving a deposit the landlord or agent must give the tenant the details about how their deposit is protected including:

At the end of the tenancy:

The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will be used to offer interest to the tenant, or landlord if the tenant isn’t entitled to it.