There are 2 types of deposit in the UK, the ‘holding deposit’ and the ‘dilapidation (or damage) deposit’. The holding deposit is the money that you give to the Landlord or Letting Agent to reserve a property (house/apartment), when you move in it is then used as part of the dilapidation deposit.

Types of Deposit

 This is a sum of money, normally the same amount as one month’s rent, which is held by the Landlord/Letting Agent as insurance against any damages that happen during your time as their tenant. This money is then returned to you at the end of your tenancy, unless you have damaged their property.

In the past, there have been problems with getting your money back once you move out of the property. Because of this the government has introduced a new law called the Tenancy Deposit Scheme (TDS), which forces the Landlord/Letting Agent to protect your deposit by registering it with one of these 3 authorised schemes.

Necessary Information

By law, your Landlord/Letting Agent must give you certain information within 14 days of your tenancy beginning (you moving into the property).

1. They must tell you which of the 3 schemes they are using

1. 2. Tell you how to apply to get your deposit back
2. 3. Explain to you the purpose of your deposit
3. 4. Tell you what to do if there is a dispute

If they do not do this, you can apply to the County Court and force them to protect your deposit through one of the schemes. If they do not obey the Court, they will be told to pay you 3 times the amount of your deposit as punishment. 

Inventory

Most landlords/letting agents carry out something called an ‘inventory’. This means taking a detailed description of the house and its contents, usually including photographs, so that there is proof of how things looked before you moved in.

When you receive this, make sure that you check it and agree with what is written. Most inventories have a clause (paragraph) stating that if you do not contact them within 7 days you accept the terms of the document. Therefore if you do not agree with them about the standard of the house and its contents, you need to tell them quickly.

If you are not given an inventory the day you move in you should ask for one immediately. If they do not produce it, you should take your own set of photographs and send them to your landlord/letting agent by registered post (go to a Royal Mail Post Office and ask them to do this for you at the counter). This way you will have proof of how things looked, if they try and keep some of your deposit at the end of the tenancy.

Returning Deposits  

Your deposit should be returned to you within 10 days of your tenancy ending (moving out). If there is a dispute between you and the landlord/letting agent, they must hand over your deposit to one of the 3 authorised schemes, listed above, and register the dispute. The scheme will then act independently to decide how to divide the money. If you really do not agree with their decision you can go further and take your claim to the County Court, but this is a long process and there is no guarantee that it will work, so try to work it out with through the scheme first.

By John Hillman

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USEFUL WORDS

holding deposit / retainer = money you pay to your landlord to reserve the property before you move in
dilapidation deposit = money you pay to your landlord before you move in and which s/he keeps until you move out, only returning it to you if there is no damage to the property
tenancy agreement = a period of time which you agree to rent a house or flat for
inventory = a written list of all the objects, furniture etc. in a house or flat
scheme = a plan or system for doing or organising something


Phrasal Verbs
move in = to start to live in your new home
be held by = to keep something that is an advantage for you
have insurance against something = something you do to protect yourself from something bad happening in the future
get your money back from someone = have your money returned to you
(dis)agree with someone about something
hand over something = to give something officially or formally to somebody else

ENGLISH GRAMMAR

Prepositions of Contrast

Use the prepositions despite and in spite of to express contrast.  They are more formal than (al)though:

Despite the inventory, the landlord still kept his deposit

Because they are prepositions, despite and in spite of cannot be used to introduce clauses – use although / though instead:
In spite of she paid a deposit, she didn’t get the flat
Although she paid a deposit, she didn’t get the flat
Despite the Landlord agreed to it, we never managed to repaint the kitchen
Though the Landlord agreed to it, we never managed to repaint the kitchen

In spite of and despite can be followed by a noun or an –ing form:
In spite of paying a deposit, she didn’t get the flat
Despite the landlord agreeing to it, we never managed to repaint the kitchen