It’s important to remember that the tenant’s deposit is just that – the tenant’s!  If you want to claim any of it to pay for cleaning costs, damage or unpaid rent then you need to prove it.  And to do this you need evidence.

Just what type of evidence you need is sometimes confusing, so we’ve created a checklist for landlords and letting agents to help out.

The checklist, which can be downloaded HERE, gives a step by step guide on what you should be doing before, during and after the tenancy to ensure you’re covered if there is any dispute.

Firstly, make sure you have a robust tenancy agreement which clearly states the amount of rent to be paid, when it’s due, and the terms of the tenancy.  It’s important to include other clauses such on pets and garden maintenance.  Badly worded tenancy agreements are the leading cause of disputes, so make sure you spell out the tenant’s obligations fairly and concisely.

When you protect the deposit, don’t forget to let the tenant know by passing the protection certificate on to them.

Make sure you do a proper inventory.  It helps to have both written and photographic evidence, or even better get a third party to do it for you.

Keep statements showing when the rent was paid, in case there is a dispute over arrears.  Also keep any invoices for repairs, cleaning costs and any unpaid bills if you want to claim on the tenant’s deposit. 

When the tenancy is coming to an end, write the tenant a letter to remind them of their obligations to properly clean the property before they move out and notify of any rent arrears then.

Arrange with your tenant to do a check out report.  Walk through the property together and check its condition against the inventory.  You’ll usually be able to come to an agreement then and there over the deposit return, and hand back the agreed amount on the spot.  Finally, don’t forget to unprotect the deposit.

By following our checklist, you’ll be armed with everything you need in the unlikely event there is a dispute.

Why not download the checklist now and print a copy for each of your tenancies? 

In 2011…

• Our call centre has taken more than 105,000 calls from landlord and agent members
• We’ve responded to over 60,000 email enquiries.
• Our adjudicators have resolved nearly 4,000 disputes
• We protected over 353,000 deposits worth more than £375m
• Over 15,000 new landlords have joined the scheme.

In March, we hit the milestone of protecting more than £1 billion worth of deposits since we started up less than five years earlier.  That’s £1 billion worth of tenancy deposits that our members have been able to hold onto themselves, rather than hand over to a custodial scheme.  It was proof landlords and agents have embraced tenancy deposit protection and that they can be trusted to hold onto the deposit money.

Throughout the year we’ve strived to help our members better understand tenancy deposit protection.  We released our comprehensive Guide to Tenancy Deposits, Disputes and Damages – which explains everything landlords, agents and tenants need to know about protecting deposits, avoiding disputes, and what to do if there is a dispute.   It’s well worth a read and can be downloaded from the Guides section on our website.

Our new look website was launched this year, with dedicated sections for landlords, agents and tenants.  There are guides and resources which are tailor-made for all users of the scheme, and it also includes quick links to our latest press releases, blogs and news along with a jargon buster and FAQs.  Tenants can check whether their deposits are protected through the site, while landlords can sign up and start protecting deposits immediately online.

In October we held our first Disputes Workshop for letting agents in London to help them better understand disputes and how adjudicators make their decisions.  More than one hundred agents turned up to hear about deposit protection and how to avoid a dispute.  More workshops are planned for 2012 so watch this space.

In November, we released our average tenancy deposit figures showing the average protected tenancy deposit in England and Wales has increased by £125 in the past year to £1,110.  We also released a regional breakdown of average deposit sizes which makes for interesting reading.

2012 will also be a big year for us as we look to expand into Scotland, with the launch of my|deposits Scotland, pending approval by the Scottish Government.  If you own or manage property in Scotland, then we look forward to protecting your deposits there as well.

Finally, we’d like to take this opportunity to wish all our members a Merry Christmas and a Happy New Year and look forward to providing you with all of your tenancy deposit protection needs in 2012.

Almost half of all disputes that tenants initially contact us with don’t end up going through to adjudication.  In 40% of cases, the tenant will go back to the landlord or agent and come to an agreement amongst themselves over how the deposit is to be paid out.

When a tenant first raises a dispute, we offer them assistance and guidance on how to resolve the dispute.  It’s one of the benefits for landlords and agents that use us – as they hold onto the money so can deal directly with the tenant when they move out.

Tenants are encouraged to speak directly with their landlord or agent and come to an agreement over the deposit return that is acceptable to both parties.

We’ve also found that just over 1% of all tenancies actually end in a dispute over the return of the deposit – that means nearly 99% of all tenancies end amicably!  Its proof that tenancy deposit protection has helped to resolve the issue of disputes.

And it’s good news for landlords and letting agents who use us.  Our advice quite often leads to the tenant negotiating with their landlord and coming to an agreement, saving both parties from having to go through the adjudication process, submitting evidence and waiting for an outcome.

For more advice on how to avoid disputes and have a successful tenancy, read our Guide to Deposits, Disputes and Damages in the guides section of our website.

Tenancy deposit protection has been in England and Wales for nearly five years now and my|deposits is still seeing substantial growth.  Is deposit protection here to stay?

Overall, Tenancy Deposit Protection (TDP) has worked very well and has been embraced by the vast majority of the lettings community.  TDP is here to stay in both its flavours – the custodial and insurance operations.

How has tenancy deposit protection changed the private rented sector for landlords, agents and tenants?

For the better.  If you contrast TDP with the Home Information Packs (HIPS), which shared its genesis in the 2004 Housing Act, one is now extinct and one is now firmly part of the lettings landscape.  The unreasonable withholding of tenancy deposits by the minority of landlords and letting agents is now off the political agenda.  Standards have been raised.  Of course not one of the current schemes are suitable for every tenancy, but for the vast majority of the industry there is choice.

What advice do you have for landlords or agents facing a dispute with a tenant over the return of their deposit?

Statistics produced by my|deposits show that almost half of all disputes raised by tenants do not need any intervention from formal adjudicators.  This suggests that once the tenant is aware of their obligations at the end of the tenancy, and once they see clear reasons for the deductions, many disputes are withdrawn.  My advice therefore is to open the channels of dialogue as soon as possible.  Show clear evidence for any deductions and give the tenant an opportunity to come back at you.  And make sure you read our Guide to Deposits, Damages and Disputes.

my|deposits has made a bid to operate a tenancy deposit protection scheme in Scotland – my|deposits Scotland.  Why does my|deposits want to expand north of the border?

We know tenancy deposit protection well and have five years of experience in operating a scheme. There is an expectation now for any scheme to be able to ‘hit the ground running’ and we are well placed to be able to do this.  The hardest part of operating a scheme is the dispute resolution service, which is one area where we’ve built up a good reputation.

Deposit protection schemes in Scotland will all be custodial, meaning landlords and agents have to hand the money over to the scheme.  What would my|deposits Scotland do differently from the other schemes to make tenancy deposit protection easier for members?

The legislation is quite prescriptive, meaning that all schemes must operate in exactly the same way.  Having said this, we are the only scheme to have a fully online dispute resolution system whereby landlords and tenants can raise disputes and submit evidence 24/7.  We will be introducing this same system into our Scottish operation, should we be successful in being granted a licence to operate.

my|deposits recently held its first Dispute road show in London, giving advice to letting agents on how to avoid disputes, or deal with them if they are faced with one.  How did the road show go and what are the plans for future workshop?

This was our first road show and was a good learning exercise for us.  We had over 120 delegates attend and all in all I felt the event was successful.  The feedback we received was positive.  For future events, we want to look at a more ‘work-shop’ based approach with more direct access to our case handlers and adjudicators.  By doing this we hope that agents will understand better the thought processes adjudicators have to go through.  Our next event is planned for south coast and we then want to bring the events to other major cities such as Manchester, Bristol and Liverpool.  Obviously if we are successful in winning a scheme in Scotland, we will roll out further road shows in Edinburgh and Glasgow.

Where do you see tenancy deposit protection in the UK in ten years time?

I see TDP as part and parcel of the lettings industry.  It plays an important role in raising standards for the landlord, tenant and agent.  We need to embrace the problems facing the UK housing market, and the PRS is the key to this problem.  The schemes will naturally evolve as any market needs to.  To what extent depends on how future governments wish to consider regulation of the sector.  I hope that my|deposits can continue to have a role in the sector in 10 years time.

In fact, the average deposit protected with us is now £1,110 – up from £985 in the past year alone. Not surprisingly, it’s the landlords and letting agents in London that take the biggest deposits. Since we started up in April 2007, the average size of a deposit taken in London has been £1495.

By contrast, tenants in Yorkshire and the Humber paid an average £568. Deposits in the south-west of England are an average £702 while in the south-east it’s a more expensive £1069. In Wales, tenants have to find an average £747 to hand over to the landlord for their deposit.

There are a number of reasons behind the average deposit rising from £985 to £1,110 in the past year. Firstly, the assured shorthold tenancy agreement threshold increased in October last year. This required all landlords with tenancies up to £100,000 a year to protect their deposits. Previously, tenancies over £25,000 a year didn’t need protection.  Also, rents have gone up during that period, so landlords or agents who would normally take a month’s rent as the deposit are taking more.

With tenants having to hand over more money, it’s more important than ever that they check their deposit is protected. You can check whether its registered with my|deposits by visiting the tenant section of our website http://www.mydeposits.co.uk/tenants. (If it isn’t, you should also check with the other two deposit protection schemes before raising the issue with your landlord or agent).

Here is a breakdown of average deposits across England and Wales since we started protecting deposits in April 2007:

• East Midlands: £916
• East of England: £961
• London: £1494
• North East: £665
• North West: £693
• South East: £1069
• South West: £702
• West Midlands: £781
• Yorkshire and Humber: £568
• Wales: £747

What are you experiences with deposits? Are landlords usually taking more than a month’s rent for the deposit now? Let us know using the comments box below.

From December 1, all tenancies which are let for up to £100,000 each year will automatically default to an Assured Shorthold Tenancy (AST) agreement.  Properties currently let for up to £25,000 are already ASTs.

So what will the change mean for these landlords?  Firstly, the deposit taken for such a tenancy will have to be protected with a government-approved scheme such as my|deposits.

If you want to hold onto the deposit as you no doubt currently do, then my|deposits can let you do so legally.  All you need to do is join the scheme and then protect each deposit individually.  Or if you are already a member, you can log into your account and protect deposits online in minutes.

Using my|deposits also allows you to deal directly with your tenant at the end of the tenancy, and come to an agreement over the return of the deposit.  Another benefit for landlords is that can now use “off-the-shelf” AST agreements for their properties.

Both parties will also have access to our free alternative dispute resolution (ADR) service if there is a disagreement over how the deposit is returned at the end of the tenancy, rather than having to go to court.

Deposits taken before 6 April 2007 do not have to be protected unless the tenancy agreement has been renewed since then.

Letting agents should also let their landlord clients know about the need to protect deposits, if the annual rent is up to £100,000.

This is good news for tenants, who will now have the security of knowing their deposit is protected.  And landlords who use my|deposits nothing has to change, they can protect the deposit money and continue to hold it in their bank account.

Landlords who fail to protect a deposit on an assured shorthold tenancy can face penalties.

For more information about my|deposits, visit www.mydeposits.co.uk or call 0844 980 0290.

The interactive workshop was a chance for letting agents to meet with us and discuss issues regarding deposit disputes, wear and tear, and inventories.

We held it at the Holiday Inn in Kensington, and it was standing room only with more than 100 people attending.

Our CEO, Eddie Hooker, started off by setting the scene with some key stats on disputes and our membership.  We now protect over £600 worth of deposits, and we’ve protected a total of £1.2 billion since starting up in 2007.

Then Sean Hooker, my|deposits Business Development Manager, gave some important tips on how to avoid disputes all together, by negotiating with the tenant about the deposit return.

Our senior adjudicator, Suzy Hershman, had some practical tips for letting agents on how to dispute-proof themselves at the start of the tenancy, with a robust assured shorthold tenancy (AST) agreement along with clear and accurate bank statements detailing rental payments.  She also gave agents a step by step guide on how adjudicators approach each case and calculate the amount they award.

Inventory Expert Nick Lyons from No Letting Go gave practical tips on how to create an inventory which best describes the condition of the property for adjudicators.

The day was a great success – check out some of our photos below.  We are also planning more workshops, so watch out for one coming to an area near you soon.

Which areas would you like us to visit?  What tenancy deposit issues would you like us to discuss?  Leave a comment on this blog and let us know.

For more information about my|deposits, visit www.mydeposits.co.uk or call 0844 980 0290.

 “The three Tenancy Deposit Protection schemes are required to provide a free, impartial and evidence-based dispute resolution process in accordance with the legislation and the terms of our service concession agreement with them. We welcome the recently published guidance on the dispute resolution process which the three scheme providers produced to help landlords and tenants understand the process and to ensure consistency in adjudication decisions across the three schemes.”

 We are thrilled our guide has been mentioned in parliament!  It’s an extremely useful tool for landlords, agents and tenants and contains important information on deposits and disputes.

We developed the guide to help everyone who is affected by deposit protection better understand how it works, and how it benefits them.  It’s pleasing to see we are helping better educate the private rented sector on this important issue and we’re delighted to have been recognised in parliament.

If you haven’t read the guide yet, click HERE to visit the guides section on our website and download the Guide to Deposits, Disputes and Damages for free.

In March 2011 the Scottish Government passed laws paving the way for deposit protection in Scotland, as we’ve had in England and Wales since 2007.

But the big difference with the Scottish scheme is it will be custodial only.  The Scottish Government legislation will require all landlords and letting agents who take a deposit from their tenant to lodge it with a scheme for the duration of the tenancy for safe keeping.  Of course the big difference is that in England and Wales, the landlords have a choice, either keep  hold of the deposit or use the custodial scheme.

The Scotland custodial scheme will be completely free for landlords, agents and tenants.

Subject to approval, my|deposits Scotland will be offering this service in Scotland from next year and we aim to be the scheme of choice for landlords and agents.

We already operate a successful scheme in England and Wales, where we have protected more than £1.2 billion worth of tenant’s deposits since 2007.  Our customer service is second to none and we consistently meet all our key performance indicator measures set by the government.

While the vast majority of tenancies end without any problems, sometimes the landlord and tenant don’t always agree on the amount of deposit to be returned when it’s time to move out.  Our free adjudication service will, as required under the new Scottish laws, help resolve any disagreement and distribute the deposit money accordingly.  Our dispute service in England and Wales was shortlisted for an award by CEDR, the Centre for Effective Dispute Resolution, in 2010.

Once the first tenancy deposit scheme goes live in Scotland, landlords and agents who take new deposits from tenants after this point will have 30 days to lodge the deposit with a scheme.  Landlords with existing tenancies will also have to lodge the deposit, but will have up to nine months to do so.

We believe deposit protection will help define good landlords and letting agents, ensuring the deposit money is safeguarded throughout the tenancy and returned to the tenant when they move out, providing they are entitled to it.

For more information on tenancy deposit protection in Scotland and how it will affect you, visit our website at www.mydepositsscotland.co.uk

But where does that leave landlords when it comes to tenancy deposit protection?  Tenants will often prefer to move into a share house on separate tenancy agreements, rather than all sign a joint tenancy.  This gives them the freedom to move out separately when their individual tenancies end, or stay on under a periodic tenancy.  This is popular with university students particularly. Tenants in HMOs also sign their own tenancy agreements.

The good news is my|deposits does protect deposits for tenants in share houses and HMOs, meaning the landlord can enjoy the benefits of using our scheme and hold on to the deposit money.  Each deposit from each tenant must be individually protected after they’ve signed their tenancy agreement.  The deposit will continue to be protected if they stay on under a periodic tenancy.  But don’t forget, if you are signing a new tenancy, even if it’s with the same tenant at the same address, the deposit will need to be re-protected.

Landlords and tenants will also have access to our free dispute resolution service if there is a disagreement over the return of the deposit.

So if you are letting a share house with tenants on individual tenancies and want to control the deposit then we can help.  Visit our website at www.mydeposits.co.uk