ej_topmost
Property Hawk

Repayment of Deposits

Landlords who have been taking a tenants deposit will be aware that since April 2007 if they take a tenancy deposit then they will have to register the tenancy deposit with one of the government approved schemes.
The most popular is the custodial scheme operated by the Deposit Protection Service (DPS).

Landlord insurance – professional rates – discounted

Their latest figures show that since launch 640,000 deposits have been protected by the Deposit Protection Service relating to some £480 million in tenancy deposits.

Given the popularity of the scheme Property Hawk has decided to look at how a landlord should go about getting the tenant’s deposit back at the end of a tenancy and some of the potential problems a landlord may encounter.

Starting the process


Landlords who have deposited the rental deposit with the DPS will have already had a login name and password as a result of the registration process.  They need to begin by logging on to their account.  They can then initiate the process of the return of the tenant’s deposit by selecting ‘Request a Payment’.

By this stage the landlord should have already decided whether they are going to withhold any of the deposit.  Remember when assessing the amount of the deposit to withhold a landlord will need to make an allowance for fair wear and tear.

A landlord should have completed a thorough 'check out' with the tenant and have a 'check out' statement completed which will be used to confirm the state of the rental property at the stage that the tenant is about to move out.

Professional landlord insurance rates from Alan Boswell Group

Procedure for tenancy deposit to be returned.


Having requested the return of the rental deposit the Deposit Protection Scheme will contact the tenant either by post or by email (where an email address is available). This notification will advise the tenant of the landlord’s request and will ask the tenant to go online or to fill a paper form to indicate their agreement or disagreement. This notification is only sent on one occasion and it may be worthwhile for you as the landlord to also contact the tenant to advise them of the pending claim, so not to incur any delay. It is also possible for the tenant to initiate the repayment in which case the landlord will be contacted instead.

Repayment of the tenant’s deposit should be fairly straight forward where both parties agree, with repayment made within 10 days of initiation of the process.  The speed that the landlord, tenant or letting agent receives the money will depend on what method they elects to receive the money, whether cheque or direct transfer into their bank account.

If there is a disagreement with the tenant and you the landlord have sought a judgment in the county courts against your tenant and you intend that the deposit held by The DPS be paid to you in satisfaction of the judgment, it is required that you as the landlord ensure that the final Court Order includes a term which refers to the deposit, or the scheme administrator holding the deposit and a direction as to how much of the deposit/all of the deposit is to be released directly from the scheme administrator to the successful Claimant.

In the event that neither the Claim Form or the Final court order refer to The Deposit Protection Service or the deposit the Claimant may apply to the Court for either an amendment to the Final Order or a Third Party Debt Order which could direct the DPS to pay part or all of the deposit to Claimant.  Alternatively, the Claimant may follow the Single Claims procedure (set out below).

SOME COMMON PROBLEMS:

The tenant disappears or does not respond


Where the other party such as the tenant has disappeared in this case it is still possible for a landlord to make what is called a single party claim.  This involves a landlord having to make a statutory declaration.  This can only be done at least 14 days after the tenancy has ended.

The Single Claim Process is a method of repayment for use if:-

1. the agent/landlord has no current address for the tenant
2. the tenant fails to respond to the agent/landlord’s written notice requiring that the agent/landlord be paid some or all of the deposit within 14 calendar days of the end of the tenancy
3. the tenant has no current address for the agent/landlord
4. The agent/landlord fails to respond to the tenant’s written notice asking whether the agent/landlord accepts that the tenant should be paid some or all of the deposit within 14 calendar days of the end of the tenancy.

If The Deposit Protection Service receives a Statutory Declaration Notice disputing part or the entire amount claimed by the Single Claim during 14 days of statutory notice, the DPS will write to both parties notifying them of the dispute, and requesting that all additional evidence be submitted before the case is referred to the Adjudicator. The dispute will be referred to The Deposit Protection Service’s Alternative Dispute Resolution (ADR) service, unless either party indicates that they do not wish to use The ADR service or notifies The Deposit Protection Service in writing of their intention to resolve the dispute using the county courts, or another dispute resolution service.

There is a disagreement between the parties over the repayment of the deposit.
Where there is a disagreement between the tenant and the landlord then if both of the parties agree, then they can elect to use the Alternative Dispute Resolution (ADR) procedure.  If both parties don’t agree then the tenancy deposit will only be released if the Deposit Protection Service receives a Court Order or agreement is received from both parties indicating a resolution of the tenancy deposit dispute.

Landlord insurance directory
– widest choice – instant quotes


The start of the dispute process begins with the notification of a dispute to the Deposit Protection Service via a duly completed Joint Deposit Repayment Form.  The DPS will issue an Agent/Landlord’s Evidence Form to the agent/landlord. This Form must be fully and properly completed and returned to the Tenancy Deposit Service within 14 calendar days of it being issued. On receipt of this form, the TDS will summarise the evidence and send the summary to the tenant with a blank Tenant’s Evidence Form. This Form must be fully and properly completed and returned to the Tenancy Deposit Service with 14 calendar days of it being issued. If there is a lead tenant, they must complete the Tenant’s Evidence Form on behalf of all tenants.

Finally the Deposit Protection Service will provide the agent/landlord with a summary of the tenant’s evidence and allow the agent/landlord seven calendar days from the issue of the summary of the Tenant’s Evidence Form to either accept or disagree with the contents of it and to submit any additional evidence which they wish to be taken into account. If the Deposit Protection Service does not receive a response from the agent/landlord within seven calendar days, the dispute will be referred to the adjudicator.  If either party wishes to have copies of the other party's evidence, a written request must be made to The DPS.

The dispute relates to only part of the tenancy deposit.


It is likely that if there is a dispute between the landlord and the tenant then it will only relate to part of the tenancy deposit.  In such cases not all the tenancy deposit is withheld by the Deposit Protection Service.  If it is agreed by both parties then even when part of the tenancy deposit is in dispute the undisputed amount will be released within 10 days of notification of the DPS.

The letting agent has paid the money in, but refuses to get involved.

A common problem with the deposit process is where the letting agent protects the deposit initially but has entered into a let only agency agreement with the landlord.  In these situations responsibilities often become blurred as to what the responsibilities of the landlord and their letting agent is in dealing with the return of the tenant’s deposit.  The starting point for any confusion on this point should be the exact terms and obligations of the agency agreement between the landlord and their letting agent.  This is one of the reasons why a properly drafted agreement should be insisted on by the landlord when appointing a letting agent.  If the letting agent has submitted the deposit but refuses to act then also see the single party claim process above.

Have you had any bad experiences in getting the tenancy deposit back?  Share your experiences by posting a comment here.


 

Dear PH - Thank you for the latest news on the property front
 
When the Tenancy deposit came into force I gave the whole thing a lot of thought and I came to the conclusion that it looks great  on paper but I could see a lot of problems if all doesn't go well.I now never take deposits what's a months rent worth if you have a bad tenant £500 goes nowhere to cover the cost of damage ect ect
I took the route of third party Guarantors and very strong vetting and references I personally do home visits to the potential Tenants address and a home visit to the guarantors address when possible
I find taking time on finding tenants pays great dividends in the long run
I have never had to take a Guarantor to court yet but have used them when I have has arrears
It works very well and a lot more powerful than a deposit
I only wish some agent would come up with the same sort of thing as a credit card in the same way that when you rent a car they have your credit card details
I think this sort of arrangement would be great if it was legal and available
Thanks again - Dyslexic Landlord


Hi - You wished to know about any bad experiences with the tenancy deposit scheme. I am a landlord which used an agent that recently went bust. My tenant is in his eighties and had not receicved any notification of where his deposit had been put even though the agent assured me that he had placed the deposit in a scheme. I was foolish enough to believe the agent without getting the details for myself at the time. Now the agent has done a runner, and none of the schemes have any details on file for my tenant. The tenant is in no fit state to pursue the agent through the courts and so I am going to put in a new deposit out of my own money for the tenant. Although I am considering just giving him the money back and not taking any deposit at all.

I understand the reasons for the scheme but it has been nothing but a major hassle and worry for me and my tenant. The agent has blatantly used it as a device to extract money illegally from the owners and is now in hiding and uncontactable. The police will not touch the case saying that it is a civil matter. - Best regards Jayne


 Landlords beware!!!
 
Burlingtons have been letting a property for me for the past 7 years, since the law came in they have  put the deposit in a scheme with my deposits to protect it. The company have now disappeared from the face of the earth and although to my knowledge and that of the tenants as it says in the contract that it is protected Burlingtons kept the money and it although so called protected, I as the Landlord I am  responsible for the return of the deposit. So now I have no deposit to cover any damages that the tenant may cause, and further more  I legally obliged to find over £1000.00 that Burlingtons took to give to the tenants!!! So much for the law...always trying to protect the tenant and now neither the tenant or myself have been protected.  My deposits will not pay out, although they were paid to so call protect the deposit!!!  I personally suggest that all Landlords keep the deposits themselves and pay for protection at least then you know the money is safe, or ensure your agent is using a ‘custodial scheme’ in case the agent go bust or run off with the tenants deposits.

 

Bookmark and Share

twitter / landlordnews

Professional landlord insurance rates from Alan Boswell Group



Comments (0)

Name
E-mail (Will not appear online)
Subject
Comment
To prevent automated Bots form spamming, please enter the text you see in the image below in the appropriate input box. Your comment will only be submitted if the strings match. Please ensure that your browser supports and accepts cookies, or your comment cannot be verified correctly.
»
This comment form is powered by GentleSource Comment Script. It can be included in PHP or HTML files and allows visitors to leave comments on the website.
Most popular landlord information and FAQs

 

What rental yield should a landlord try to achieve?
Accelerated possession - Section 21 Notice
Non payment of rent
The Tenancy Deposit Scheme (TDS)
How to prepare a property inventory
Grounds for possession of a rental property
Fair wear and tear on a rental property?
Filling out a N5B form for possession
Landlord insurance advice
Letting to students
How do I choose the best tenant?
Should I use a letting agent?
Commercial Mortgages

Whole market search.
Instant personalised quote.
Rates updated in real time.

Find the most suitable mortgage for your individual requirements using our advanced buy-to-let mortgage finder.

Search
News and Advice for Landlords

MAGAZINE
Landlord Freehold Ground Rent Investments Many landlords are attracted to investing in proper...
Hello, I am Amy Castleman, a specialist Housing Solicitor at Premier Solicitors in Bedford. M...
One of the biggest issues that landlords face when tenants move out is the oven clean. Why is...
Should landlords let to students? Students can make good tenants & here’s why: ...
The risks of a leak in an apartment block To date I have bought two apartments in residential...
The three pillars of successful residential investment I’m often asked by newbie landlo...
This has been a question that has pre-occupied me for several years.  By instinct I don’t l...
I noticed recently there have been some significant repair bills coming through as the age of my buy-t...
“To furnish or not to furnish your rental property, that is the question” The dif...
‘Rent to rent’ sometimes known as rent2rent is the latest get quick scheme dreamt up by th...
What are tenancy renewal fees? A tenancy renewal fee is ostensibly the charges made by the le...
Cleaning Deposit Disputes between a Landlord & Tenant One of the most regular a...
If I had a pound for every time over the last 25 years of renting property and more recently running P...
Dates play an important part in a landlord’s life.    Pict...
Over the last two years, the property industry has seen an increase in the number of disputes between ...
Before you turn off thinking "oh yeah it’s another plug for  landlord insurance,"...
A vital part of being a successful landlord is to get the right tenant. In fact if the truth be known,...
For property investors, particularly first time property investors there a huge number of potential in...
BTL landlords are often portrayed as money grabbing, evil, exploitative beasts. We are accus...
How I started my property portfolio I started my portfolio back in the early 90's. We had jus...
INVESTORS CHECKLIST For potential property investors there is a huge amount to take...
We have spoken before about the life of a student landlord, but here's a little bit more advice for th...
Lease options are all the rage in some landlord discussion forums having usurped BMV or Below Market V...
Property gurus & experts The rise in the buy-to-let residential investment market has bee...
  Advanced residential investment strategies Buy-to-let investment is pretty st...
For landlords with residential investment property it’s rapidly approaching that time of year &n...
Since the introduction of the Tenancy Deposit Scheme (TDS) on the 6th April 2007 it has been a legal r...
It seems timely with the deadline for paying and submitting your self assessment t...
Lee Sharpe from TaxInsider.co.uk looks at the implications for property businesses considering incorpo...
This modern day ‘knight’ of the urban realm can be hero or cowboy depending on the one you...
I'm fascinated by 'financial engineering' and how every so often, quirks of timing cause financial opp...
Rental period confusion One of the most confusing aspects of let...
Caveat emptor for the non-linguists means ‘Let the buyer beware’.  Loosely translate...
Property Hawks Property Manager software is mainly designed for individual buy to let landlords to man...
Here we go again. The leaves are turning a riot of oranges & reds before we descend headlong into ...
Landlords could be forgiven for feeling a little brow-beaten. Over the last 12 months, we hav...
The Government have produced a new Section 21 Notice. We have updated the version of our free...
A number of users have contacted us to share their concern over the proposed tax changes in the Budget...
Is Landlords Boiler insurance worth it? Getting your boiler fixed can be costly for landlords...
Landlords looking for a buy-to-let mortgage will face more restrictive lending criteria in the future....
Cash Back Offer Landlords looking at taking out a buy-to-let mortgage want to look at the Pro...
The Chancellor has not been overly generous to landlords and the buy-to-let sector in his Summer Budge...
PM3s is the 4th generation of our Free Property Management Software. The software has been free to use...
Section 21 Notices are about to change as a result of the Deregulation Act 2015.  Rebecc...
Following the election result. many landlords are breathing a sigh of relief.  Economic stability...
Landlords should be fully aware of the importance of being adequately insured. I know it's a pain to s...
Taxing Concerns for the Buy-to-Let Market The UK’s property market was given an unprece...
I hate change and regulation.  Most of it is badly thought out, counter productive & pointles...
The latest legal case to unsettle the traditional certainties of a landlord’s world is the case ...
Private Rental Sector – Party Policies The big day approaches and finally it will be yo...
Changes that came into force this week (6th April) (see for instance http://www.bbc.co.uk/news/business-32087038) now allow many ...
When selective landlord licensing was introduced  by the Housing Act 2004 it was intended to be a...
My small claims court experience My case came about because my tenant stopped paying the rent...
Rents are rising. Great!  According to the Rentindex they are up over 2.5% over the last year. ...
My tenant has always been an exacting type but it's now getting beyond a joke. Every few week...
Most landlords know that they need specialist landlord insurance.  Why? Because household policie...
It's been a while since I've sold one of my buy-to-let properties, but the potential of a new buy-to-l...
Christmas is a time for reflection and after over 20 years in the landlord game I've seen a fair few c...
Landlords are never off duty.  Last week I was in the middle of a patisserie class of all things ...
Tenants are getting more politically militant! They are mobilising, pulling together, and forming grou...
After 12 years of owning and renting out a flat, the freehold landlord has decided they want to start ...
Refubish to let – finance is key 'Refurb to let' is the latest trend in buy-to-let acco...
The the referendum and the party conferences of the past few weeks have thrown politics back into the ...
We have warned landlords before about the purges on landlords. The cash strapped Revenue periodically...
My problem tenant has gone, and finally I have possession of my rental property. ...
What interest rate should a landlord charge on late rent payments? My problem tenant has fina...
Tenancy Deposit Scheme disputes Tenancy deposit disputes are a messy business, so we asked th...
My tenant has left - time to celebrate? This week I was greeted by a text from a friend/neigh...
Revenge Evictions –time to act? 'Revenge eviction' is a new concept to me .  It&rs...
Letting agent questions I’m just in the process of selecting a letting agent.  I&r...
Buy-to-let hotspots are the ‘talk of the town’ right now.  Clearly we are in some kin...
Letting agents are not the ‘favourite kids’ on the property block. Landlords tend to view ...
Landlords should get fixed up I have been eyeing the latest developments in the economy and t...
What are the new court fees for possession? The court fees for landlords obtaining possession...
What are my allowable expenses? I’ve been contacted recently by several landlords who w...
Solicitors are costly. I'm all for landlords using their initiative and avoiding paying unecessary pro...
Section 21 notice dates – where are we now? Rebecca Brough our resident expert from Fid...
People frequently ask me what is my biggest tip on how to be a successful landlord. The answer is simp...
Not all our users realise that having signed up to our website they are FREE to start using our Proper...
I've been hit recently by a range of maintenance issues on my buy-to-let portfolio, including a number...
We are just a couple of weeks into 2014, so I thought I’d take a look at some of the best deals ...
OMG!  It's here again.  The ‘bloomin’ personal assessment tax deadline looms lar...
It looks like ‘Austerity’ …..‘Prudence’s’ long lost sister is on ...
The Section 21 Notice has not been the easiest of things for landlords to get right. Using the right o...
In the week that the Land Registry released historic data going back 18 years, I thought I would share...
Rebecca Brough solicitor at Fidler and Pepper highlights the potential dangers and consequences of the...
It appears that landlords are starting to fight back over unfair licensing charges by some local autho...
Access to finance is key When I started as a landlord the key for me was access to ...
Prospective property investors thinking of dipping their toes into the residential property market, or...
Longer tenancies?  Sounds like bliss to most landlords. Most of use love the thought of long-term...
The section 21 notice is a powerful tool. It is the one document that gives a landlord the certainty o...
When is a landlord not a landlord? Well the obvious answer is when they are a leaseholder.  ...
Creeping landlord licensing is on its’ way affecting many landlords.  A perfect example is ...
I was talking to one of the waitresses in my local.  She is so excited! She’s ...
Tenancy agreements are our thing.  We have been providing a free tenancy agreement to the landlor...
The latest projections see no immediate end to the long run of low interest rates.  This week Mar...
Our Property Manager software has come on leaps and bounds since we first developed it as free propert...
In these tough financial times some landlords may be looking at how they can pull in a few extra quid ...
The Government's latest proposals are to introduce a statutory obligation on landlords to check whethe...
Many landlords have been thrown into confusion over the last few months as tightening legislation and ...
I love being a landlord.  I’ve recently set up another new business.  I work ...
According to figures from the Dogs Trust, 46% of the population currently own a pet.  Now assumin...
Recently, I was talking to a new landlord about their first ever tenants.  They had been chuffed ...
Should I use a letting agent? The perennial debate amongst landlords is should I use a lettin...
Landlords who may be thinking about buying into purpose built student accommodation should stop and th...
Landlords are increasingly often under a time pressure. With the burgeoning regulatory requirements of...
Most of us ‘hard bitten’ landlords get fed up with the endless splurge of meaningless head...
Are rents about to fall? Landlords have been insulated from many of the harsh economic winds since the...
Tenancy Deposits – ESSENTIALS I’ve recently had a scare over one of my tenants de...
The queen is dead! Yes off course I'm referring to Margaret Thatcher.  Now she never sai...
Landlord Insurance Minefield My landlord insurance falls due this month.  As u...
We have frequently expressed opposition to a blanket landlord registration scheme - the ‘so call...
We’ve all had it - the phone goes, it’s one of your tenants’.  Do you:...
Better The Devil You Know?   I've recently advertised my rental property follo...
I was contacted this week by a fraught landlord who was the subject to a negligence claim from their t...
The buy-to-let mortgage market has gone from bust to boom again over the last few years.  With le...
This is a regular discussion point amongst many landlords.  Those that have been dissatisfied wit...
It's a landlords’ dread!   A nice respectable looking tenant, with a good...
Rebecca Brough of Fidler and Pepper Solicitors asks whether landlords need a tenant guarantor, and exp...
The thing with managing a portfolio of buy-to-let property is that for much of the time you don't have...
Brings Threats and Opportunities Many landlords are adopting a wait and see approach to the G...
Severe rental arrears fell by almost 16 per cent in the fourth quarter of 2012 according to data from ...
Should a landlord let their tenants smoke? Landlords are acutely aware of the bad smells and ...
New Year celebrations are well and truly over, so it’s back to work, and for many landlords, sma...
I was thinking today, what would be the top 5 things I would wish for next year as a landlord.  S...
You may think that as a landlord you are not liable for your tenants’ water bill. Well up until ...
I can't begin to explain how fraught the last few weeks have been.  Most part time landlords will...
The buy-to-let mortgage market has been in the doldrums for several years after the ‘crash&rsquo...
Rebecca Brough of Fidler and Pepper explores the world of fees and charges in respect to a landlords ...
Don’t forget your section 213 notice! Property Hawk has been urging landlord not to forget about...
You are just about to let your buy-to-let.  So what are the essential bits of paper work that you...
Is there such as thing as the ‘fair wear and tear’ of your buy-to-let property? ...
Landlords looking to obtain possession have two basic choices when trying to get their buy-to-let prop...
So it all goes wrong!  The tenant moves out (disappears) and owes you months of rent.  They ...
We recently had a enquiry on the Landlord Forum asking whether it was a good idea to serve a section 2...
Landlords seeking possession frequently have to decide between the merits of using a Section 21 notice...
Renewing a tenancy is one of the most straightforward aspects of managing a tenancy.  But many la...
Getting possession of a rental property when your tenant falls into rent arrears Th...
I read recently on a landlord forum a suggestion from one disgruntled tenant that landlords should be ...
My latest round of tenant gripes has hit me after a relatively quiet period. I suppose it was...
After launching the new version of the property management software we felt the actual site pages look...
Rental yields have always been a critical metric when evaluating a buy-to-let investment and they are...
Any landlord who follows London politics will not have escaped the fact that the private rented sector...
I was chatting this week to my joiner Steve. He was having a nightmare! Steve had done most o...
The Co-op announced last week that it was stepping up lending into the buy-to-let mortgage market by a...
Legislation should be in place by the end of the year to allow landlords to benefit from the Green Dea...
It's January which means only one thing for most landlords, yes it’s time to get to grips with t...
As the year comes to an end many landlords will be drawing up their plans for 2012. With the ...
I was contacted several weeks ago by one of our longstanding users. Kevin wrote to highlight ...
I'm like the majority of small landlords in that I have opted to use the Deposit Protection Scheme (DP...
Europe is at it again! Not content with their crazy project “Euro”  putting ...
You might be aware that I’ve had a number of new tenants recently. This has i...
It’s a great time to be a landlord. Many of us including me are making record rental pr...
I was contacted last week by a landlord looking to gain access to their bu...
I’ve written before about landlords not needing to use a letting agent. We al...
It's been a while since I've had a new tenant move in. The new tenant seems amiable enough. A middle a...
My landlord insurance fell due at the beginning of this month. DAMMM! Yet again the dilemma. ...
It is possible to get a company to fill out your N5B.  This will cost anything upwards of £...
Most landlords use an Assured Shorthold Tenancy agreement to let their property. So how long ...
I've been looking at some recent enquiries from landlords who use our Property Management software to ...
Most landlords who let a property that is tenanted will not be liable for council tax.  This is b...