Whether you’re renting privately or through a letting agent, tenants have to pay a tenancy deposit. The deposit protection requires landlords or agents to place a tenant’s deposit in a government-backed scheme. The reason for this is to give both the landlord and the tenant protection through an impartial third party.
How much should a tenancy deposit be?
The Centre for Economics and Business Research recently found the average landlord charges 4 weeks’ rent for a tenancy deposit. In addition to this, the average deposit was approximately £800. The research also predicted that by 2026, the average tenancy deposit will hit £1,111 across the country, and a huge £2,753 in London.
Where is a tenancy deposit held?
Landlords and agents must place tenants deposits in a government-approved scheme. There are three main schemes – mydeposits, The Deposit Protection Service and The Tenancy Deposit Scheme. The biggest provider of deposit protection in the UK is the DPS who have protected over £6M deposits.
Common reasons for withheld deposits
For tenants, it can be hard to know how they can get their deposit fully refunded. One of the most common reasons for a deposit not being refunded is wear and tear on carpets. Not only this but chipped paintwork, damaged wallpaper and broken fixtures and fittings came top of the list. There were also issues around the condition of gardens and the lack of gardening and care taken to look after the outside of the property. For tenants who are struggling to maintain a property, it is always worth speaking to your landlord to see if they can help support you in looking after any areas of the property that you are unable to manage such as the garden.
If you are a landlord or tenant looking for support then contact one of our experienced team today. We have over 20 years of experience within the letting industry.