A Leeds property agent has fallen foul of regulations protecting housing deposits. But SOPHIE HAZAN reveals it is tenants who must look after their money
LEEDS-based Providence Properties was pulled up by authorities last week after it failed to protect housing deposits.
But at the end of the day the onus lies with the tenant who must make sure their money is safe.
It was discovered that Provide
nce Properties (PP) had broken new housing laws.
There are some rare exceptions, but since April 6, 2007, all property agents and individual landlords must now secure deposits given to them by tenants against properties they rent out.
To do this they must join one of three government-backed schemes and secure the cash with them.
Key details regarding the scheme must then be given to the tenant within 14 days of the contract being completed.
Wrong
PP, which has an office on Victoria Road in Hyde Park, Leeds, registered with one such scheme but then failed to secure the monies it held within the two week time frame.
It had not protected deposits as is required by law.
After the Yorkshire Evening Post intervened, the firm's bosses have now promised to bring their accounts into line.
What struck Consumerwatch was that there was no single body able to force an agent or landlord to join one of the schemes in the first place.
The Government only deal with a scheme if it goes wrong.
And the schemes only get involved to resolve disputes between landlords or property agents and their tenants over the return of deposits once money is secured with them.
It is up to the tenant to make the rogue landlord or agent 'join' a scheme.
And they have to do this by taking civil action.
The court can then order the landlord or agent to either repay the deposit to you or protect it in a scheme.
And then if the landlord or agent has not protected your deposit, they will be ordered to repay three times the amount of the deposit back to you.
Thankfully there are people out there to help.
Citizens Advice Bureaux offer full support and housing advice; Legal Aid is available where needed on civil matters.
Students also have their own support such as Unipol (0113 243 0169) on Woodhouse Lane, which is a charity designed to improve training, standards and professionalism.
Consumerwatch guide to who's looking after your cash
CONSUMERWATCH has put together a guide to looking after your tenancy deposits.
Since April 6 last year all landlords or property agents must secure all deposits paid to them against a property they have rented out.
There are two types of scheme available to landlords and letting agents: insurance-based and custodial.
All are backed by the Government and provide a free dispute resolution service.
They allow tenants to get all or part of their deposit back (where they are entitled to it), and encourage tenants and landlords to make a clear agreement from the start on the condition of the property.
This is done by way of an itinerary and condition check.
Insurance-based schemes are offered by Tenancy Deposit Solutions Ltd and Tenancy Deposit Scheme.
The tenant pays the deposit to the landlord, who then retains the deposit but pays a premium to the insurer.
Custodial-based schemes are only offered by the Deposit Protection Scheme.
The main difference here is that the landlord or agent receiving the deposit does not hold it. The money is paid it directly to the DPS, who hold it for the duration of the contract.
These are the only three schemes authorised to secure deposits.
All landlords and agents must provide details to the tenant within 14 days of receiving a deposit, including:
l Contact details of the scheme selected;
l Landlord or agent's contact details;
l How to apply for the release of the deposit;
l Information on the purpose of the deposit;
l What to do if there is a dispute.
If an agreement is reached about how the deposit should be divided, the landlord, agent or scheme returns all or some of the deposit.
But there will be occasions where money is deducted for repairs and maintenance to a property.
In the event that there is a dispute, the landlord must hand over the disputed amount to the scheme for safekeeping – unless the money is already held by the DPS custodial scheme – until the dispute is resolved.
If for any reason the landlord fails to comply, the insurer will ensure the deposit is returned to the tenant if entitled to it.
Even when you are provided with information of the scheme, it would be worth checking that the details are correct.
It is possible for a landlord or agent to register with a scheme, but to not have actually secured your money.
Once you have the name of the scheme check they are members and that money against your property is secure.
If it is not, you can apply to the local county court for a hearing.
The court can order the landlord or agent to either repay the deposit to you or protect it in a scheme.
If the landlord or agent has not protected the deposit, it could also be ordered to repay three times the amount of the deposit to you.
At the end of the tenancy you must check the condition of the property - allowing for fair wear and tea. Also you must check that rent, bills and any other expenses are paid.
Next step is to reach agreement as to how much of the deposit should be returned to you.
Once this is done the amount should be returned to you within 10 days.
