f you fail to protect your renter's deposit with an authorised scheme then you could face a fine of up to 3 times the deposit amount. But fear not, help is on hand with Tim and James from mydeposits. They will outline the different options available to landlords and letting agents to protect deposits, comply with their legal obligations and avoid penalties.

1. Tenancy deposit protection
Tim Frome
James Acreman

2. Deposit protection basics
“Standard practice for a landlord to take a
deposit from their tenant in order to safeguard
potential breaches of the Tenancy Agreement.”

3. Legal requirements
When you:
Take a deposit from your tenant,
On an Assured Shorthhold Tenancy agreement,
In England & Wales.
You must protect it with a government
authorised scheme.

4. How to comply
Once you receive the deposit you must:
1. Protect it with a scheme,
2. Pass the tenant the Prescribed Information.
! Do both in 30 days of receiving the deposit.

5. Choose how you comply
Free to decide which scheme suits you best and
fits with the way you run your lettings:
Insurance You hold the deposit Pay to protect deposit.
Custodial You lodge deposit with scheme Free to use.

6. The Prescribed Information
Key information relating to the protection for the
tenant:
• Your name and contact details,
• Amount of deposit paid and the tenancy address,
• Details of the tenancy deposit protection scheme,
• Purpose of the tenancy deposit protection scheme,
• How to get the deposit back,
• What to do if there is a dispute about the deposit.

7. Why was the law introduced?
• Designed to safeguard the tenant's deposit.
• Ensure they get it back provided they have met
the terms of their tenancy agreement.
• Free access to an impartial dispute resolution
service to resolve issues over deposit’s return.

8. Dispute resolution service
You must provide evidence to support claim over
deposit deductions.
“If you provide no, or poor quality evidence then
the deposit will be awarded to the tenant by
default.”
Onus on you to provide the proof of a financial
loss and tenant broke Tenancy Agreement terms.

9. Evidence
Start of tenancy:
• Quality Tenancy Agreement,
• Detailed, descriptive inventory with photos,
During tenancy:
• Keep all invoices and receipts,
• Copies of correspondence,
• Evidence of rent payments,
End of tenancy:
• Carry out a check out report with photos.

10. Fair Wear and Tear
No formula because every tenancy is different:
Consider:
Age, condition at the start, average lifespan,
number and type of occupants, length of tenancy.
• You can’t claim new for old!
• What is reasonable or proportionate?

11. Thanks for joining us
• See you next time
• Next episode features Brian Croucher
– Remote Property Management
– Living the good life
– 25 June 2014 at 1900