Newer tenants who are moving into a rented property for the first time will be handling a lot of things they might never have had to before, like communications with a landlord, or paying a deposit. Some new tenants may have a few queries when it comes to a deposit, including why it is necessary, what happens, and how to get it back. Below, we answer a few common questions surrounding deposits that come from first-time tenants.
Why do I need to pay a deposit?
Not every landlord will take a deposit, but in most cases they will. This is to provide them with a safety blanket in case anything happens to the property during the tenancy which may affect the landlord financially, whether it’s damage to fixtures or provided furniture in the property, or cleaning costs incurred after the tenant has left the property untidy.
If a landlord does choose to take a deposit, it is up to them how much the deposit should be, however they cannot exceed the value of two months’ rent.
What happens to my deposit?
Newer tenants might assume that once they have paid their deposit, the landlord holds on to it – but this is actually not true, the deposit is instead held by a third party. The landlord will have 30 working days from the tenancy start date to protect the deposit with a government approved tenancy deposit scheme, such as SafeDeposits Scotland, who will then hold on to the deposit for the duration of the tenancy.
Protecting the deposit is a legal obligation set out by the Tenancy Deposit Schemes (Scotland) Regulations 2011.
What if my deposit isn’t protected?
If your deposit has not been protected with a government approved tenancy deposit scheme within 30 working days from the tenancy start date, or you have not received the prescribed information that pertains to your deposit, then the landlord is in violation of the Tenancy Deposit Schemes (Scotland) Regulations 2011, and can be taken to the First-tier Tribunal for Scotland (Housing and Property Chamber).
The Tribunal will consider why the landlord has not acted in accordance with the regulations, along with various other factors including how long they have been a landlord and how many other properties they own and are renting out, and may order the landlord to pay the tenant up to three times the deposit amount.
I’m moving out, what happens to my deposit now?
Once it is time for you to move out of the property, your deposit can be reclaimed. For deposits held by SafeDeposits Scotland, either you or your landlord can initiate the repayment process. If the landlord is satisfied that you have met the terms outlined in your tenancy agreement, you should receive the full deposit amount back.
What if the landlord claims part of my deposit?
If the landlord is unsatisfied for any reason – the property has been left untidy or there is damage, for example – they may wish to claim part of the deposit to cover any costs incurred.
If you are in agreement with the amount the landlord has claimed, it will be deducted from your deposit and paid out to the landlord, with the remainder of the deposit being returned to you. If you disagree however, you do have the option to dispute the landlord’s claim. SafeDeposits Scotland offers Alternative Dispute Resolution (ADR) as an alternative to the formal courts process, which can be lengthy. Find further information about the different stages of the ADR process here.
How can I prevent claims against my deposit?
The best way to prevent a claim from your deposit at the end of the tenancy is simply by abiding closely to the check-in report. This is the primary piece of evidence an adjudicator will look at in the event of a dispute, and it helps paint a picture for the adjudicator of what the tenancy looked like when you first moved in.
A good inventory will be a detailed, room-by-room guide of every item and fixture in the property, as well as their condition. It is helpful to not only refer back to the inventory every now and then to make sure everything in the property is in order, but to use it as a checklist when you give the property its final cleaning before moving out.
Finally, communication with the landlord is key. Many issues that arise in the property can be resolved quickly if the landlord is notified immediately, but may accelerate otherwise – issues pertaining to damp, mould and condensation for example. Having a healthy line of communication with the landlord and keeping them in the loop could help prevent a dispute when it is time to leave.
