Paying a deposit and how to get it back?

 

Why do I need a deposit?

Most private landlords and agents require:

1. A deposit which is usually the equivalent of one months rent, but it can be more. The deposit gives your landlord some security if you cause them a financial loss.
2. Rent in advance - This is different to a deposit, but if you pay rent monthly, you will usually be asked to pay this also for the first month before you move in.

What should I do when I pay a deposit?

• Insist on a signed and dated receipt
• Get the address and telephone number of the owner and/or agent that you are dealing with
• Where possible only make payments at agents' offices or once you have confirmed the contact name address and telephone number of the landlord/agent
• Ask if deposit goes into a deposit protection scheme.

You should ask the landlord to state clearly in the tenancy agreement the circumstances under which part or all of the deposit may be withheld.

Also see: What's my Tenancy Agreement all about?


Deposit protection schemes
All landlords and agents are required to protect your deposit using a government approved tenancy deposit scheme. This protection is so that:

• You get all or part of your deposit when you leave the property (if you are entitled to it)
• Any disputes between you and your landlord are easier to resolve.

There are three different Government approved schemes and the landlord must handover the deposit to one of these;

1. The Deposit Protection Service
2. Tenancy Deposit Solutions Ltd
3. The Tenancy Deposit Scheme

Within 14 days of paying your deposit, the landlord or agent is required to give you details about how your deposit is protected including:

• the contact details of the tenancy deposit scheme
• the contact details of the landlord or agent
• how to apply for the release of the deposit
• information explaining the purpose of the deposit
• what to do if there is a dispute about the deposit

If you don't get this information, ask your landlord or agent the simple question - 'How is my deposit protected?' If your deposit has not been protected or you have not been informed, your landlord may have to repay you three times the amount of the original deposit in compensation.

The deposit scheme holds your money and should be returned to you unless the landlord can prove he/she has suffered a financial loss because of you. Your landlord cannot withhold your deposit for general 'wear and tear'.

You have a responsibility to return the property in the same condition that it was let to you, allowing for fair wear and tear.


How do I find out more about keeping my deposit safe?
Visit your Local Service Centre or contact the Housing Options Centre on 020 8430 2000 or read the Communities and Local Government leaflet called 'Tenants -Keeping your Deposit Safe'. The leaflet details useful links to the government's authorised organisations that are currently running the schemes.


How do I get my deposit back?
Both you and your landlord must agree on the amount to be returned before the deposit is released. The balance should be returned to you when you move out or within a reasonable period. If your deposit is held in the Deposit Protection Scheme your deposit will be returned to you directly.

If you have not received your deposit after agreement with the landlord within 10 days contact your scheme provider.


What if we can't agree on how much should be returned?
If you can't agree on an amount to be returned you can use the alternative dispute resolution (ADR) service as part of the scheme. If your landlord refuses to use the resolution service or to go through court and you can prove this you may be able to get access to your deposit money without their agreement.


What if I can't afford a deposit?

Bond Scheme
You may be eligible for the Bond Scheme where a legally written agreement from the council to a landlord will be used in place of a deposit. To be eligible you must:

• be homeless or threatened with homelessness
• be receiving benefits or a low income
• have a local connection to Newham (through family, work or residency).

For more information on the Bond Scheme call or visit your Local Service Centre or call the housing options centre 020 8430 2000


What if I can't afford rent in advance?

Budgeting and crisis loan
If you are receiving Housing Benefit or Income Support or similar benefits, you could apply to the Department for Work and Pensions for a loan to raise money for rent in advance. The amount you borrow is usually deducted from the benefits you receive over a two year period.

For more information on rent deposits contact your Local Service Centre or call on 020 8430 2000. Alternatively contact:

Shelter
website: www.shelter.org.uk
Tel: 0808 800 4444
Free housing advice line (from 8am - midnight)

Download this information as a handy fact sheet.