Read our blog on refundable deposits and the special tenancy protection scheme.
Our advice on refundable deposits
As part of the agreement, you will probably be required to pay a refundable deposit (usually equivalent to four weeks’ rent). New Tenancy Deposit Protection legislation (introduced on 6 April 2007) covers most ASTs in England and Wales where a refundable deposit is paid. Under it, deposits must be placed in a special tenancy protection scheme within 14 days of payment.
The main purpose of the legislation is to safeguard the tenant by guaranteeing the return of his deposit in the appropriate circumstances. It should also reduce potential for disputes by encouraging landlord and tenant to reach a documented agreement as to the property’s condition at the start of the tenancy.
With thanks to BuyAssociation.