It’s 10 years since the first tenancy deposit schemes were introduced in the UK, and members frequently post their questions on tenancy deposits on our forum
Five years ago the RLA launched its DepositGuard service with TDS, which offers RLA landlord members deposit protection at discounted rates, in partnership with the Tenancy Deposit Scheme.
In this week’s Forum Spotlight we take a look at a query about protecting tenancy deposits.
The landlord had an issue where a tenant had moved into a property ten days ago, and had suddenly lost their job meaning that they wanted to move out of the property in the following three days.
The landlord had taken a deposit from the tenant, however this had not been protected in a scheme, for example DepositGuard.
The landlord in this case was happy to cancel the agreement, because the tenant has not paid any rent yet. They planned to give the tenant the deposit back, but wanted to deduct from this the two week’s rent the tenant hadn’t yet paid, ensuring the tenant signed a disclaimer for this.
The landlord wanted to know whether he is liable for not protecting the deposit, and whether they should protect it asap, and then make the tenant claim it back through a scheme.
The solution- response from our Landlord Advice Team
The landlord in this case is not liable for not protecting the deposit, because they have 30 days to do this. There is no problem asking the tenant to sign a disclaimer explaining any deductions the landlords wishes to hold back.
Want to learn more? The RLA run an online course for landlords which is designed to navigate the complex laws on deposits. You can also check out our Quick Quiz on tenancy deposits, and read the original forum post