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Consumer: Protect your cash bond
ORDEAL: Christine Carter, Terry Shackleton and daughter Chantelle Shackleton at their home in Meanwood, with family friend Laura Billings, second left.
While one family is on the verge of finding themselves homeless, you might be able to protect yourself from the same fate. Sophie Hazan finds out what to do.
A Leeds family is on the verge of being made homeless after a landlord failed to return their deposit.
Tenants Terry Shackleton, 54, and Christine Cater, also 54, who live together with 10-year-old daughter Chantelle in Meanwood, cannot afford to take on another home without the bond.
Yet they have been served with an eviction notice, told to leave within four weeks, and so far given no hope they will get back the £500 bond they put down on the property in 2004.
Sadly for them, the money was not put into a tenancy deposit protection (TDP) scheme – as it only become a legal requirement on property lets starting after April 6, 2007.
Mr Shackleton said: “It’s a nightmare.
“I am talking with my solicitor about the deposit and she should be taking action for our losses.
“It would have been a relief to know that our money had been held in a protection scheme, but that wasn’t an option for us.”
Today landlords and letting agents must, by law, protect tenant deposits using a TDP scheme if they have let the property on an assured shorthold tenancy (AST).
The scheme guarantees tenants get their cash bonds back at the end of a rental term where they meet the terms of the agreement.
Landlords do have the right to hold back a deposit for repairs and cleaning bills – but this must be a reasonable amount, and receipts should be provided.
Where a property owner does not secure a deposit, a tenant can take them to court.
If proven, the landlord will have to repay the deposit plus three times the amount of the original amount left as a bond.
TDP schemes do not cover holding deposits, sometimes needed to secure a property before you sign a contract.
But once you become a tenant on a short hold tenancy agreement the money has to be protected.
Leeds University Union advice centre manager Andrea Kerslake has been educating student tenants on their rights, and supporting them where they have been cheated out of their money, for years.
She said: “It is a legal requirement for landlords to protect deposits, and whilst the majority of landlords do, there are still some who are failing to meet their legal obligations which can result in tenants losing out.
“It is important for tenants to check that their deposits have been protected shortly after they have paid the money.
“Finding out at the end of the tenancy that their deposit hasn’t been protected could mean a difficult time getting the money back.
“We would also caution tenants against paying money that covers rent arrears and damages, but isn’t called a deposit and isn’t protected. “We would strongly advise tenants to seek advice before they agree to pay money into insurance or reward schemes.”
Within 14 days of receiving a tenant’s deposit, the tenant should be informed, in writing, of the:
* address of the rented property, and the amount of deposit paid;
* a landlord’s or letting agency’s name and contact details;
* name and contact details of any third party that has paid the deposit;
* items or services covered by the deposit;
* circumstances under which the landlord will be able to retain some or all of the deposit, and
* what to do if there is a dispute over how much deposit should be returned.
There are three approved TDP schemes, which are:
* Deposit Protection Service;
* MyDeposits; and
* Tenancy Deposit Scheme.
These can be split into two types – custodial and insurance-based.
Any landlord can use the custodial scheme but there are some restrictions on who can use the insurance-based schemes.
Tenants can expect a decision as to how much of their deposit is going to be returned to them within 10 days from the end of the tenancy.
Any part of the deposit kept back at this stage will remain protected in the scheme being used until such time as any dispute is resolved.
The exact arrangements depend on the type of scheme used.
Check if your deposit is protected by visiting the Deposit Protection Scheme at www.depositprotection.com; Tenancy Deposit Scheme at: www.thedisputeservice.co.uk or by phone on 0845 226 7837; or My Deposits at: www.mydeposits.co.uk or by phone on 0844 980 0290.
Find out more at: www.direct.gov.uk
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