Landlords are being urged to make sure tenants realise their deposits will be independently protected as research shows many rental clients are not aware that deposit protection schemes are now demanded by law.
A report released by well known homeless charity Shelter claims that complaints from tenants involving tenant deposits has risen by over 80% in just 12 months and at a time when most property investors with an interest in landlord insurance are complying with the newly strengthened regulations. The rules surrounding tenant deposits now oblige landlords to keep deposits separate from other income and insist they are passed into an independent tenant deposit scheme within 30 days of collection. This ensures the money will still be available in any circumstance when the tenancy comes to an end and should give the tenant peace of mind when he enters into a rental agreement.
However, Shelter says a large number of tenants are still ignorant about the scheme and with the average deposit in the UK now almost £1000 many are still finding it difficult to retrieve their money when their agreement ends. Campbell Robb, Chief Executive of Shelter, said “While we know that most landlords do the right thing, some cause absolute misery for their tenants, accusing them of owing thousands of pounds for damage that does not exist or falsely claiming to have protected their deposit and then never returning it. Without protection, renters are putting themselves at the mercy of unscrupulous landlords and risk losing their hard-earned money that they paid in good faith.”
Shelter has now set up a link on their website called the Deposit Protection Scheme Checker which they say will help tenants check that their deposits are safe.