It seems incredible, but the Deposit Protection Service (DPS) has said that it has almost £5 million of deposits which it is unable to repay because it can’t get hold of the tenant to whom the money is owed.
The Director of the DPS, Kevin Firth, said that “some tenants are not keeping their contact details up to date – resulting in this large number of unpaid deposits”. For security reasons, once the deposit has been lodged with the DPS, only tenants can update their contact details.
The DPS now requires either the email address or the mobile phone number of the lead tenant – and preferably both – to be supplied with any new deposit held. It will shortly be launching an SMS service to notify tenants when their landlord has released the deposit for them to claim back.
Of course, this isn’t going to be a foolproof system either. People’s emails and mobile phone numbers change. Tenants need to be aware that it’s their responsibility to keep these details up to date.
Back in October, more figures from the DPS revealed that a third of landlords are prepared to admit they’re flouting the law on deposit protection. Whatever your opinion on deposit schemes, it’s not good to have headlines like this fostering the same old shabby image of the private rental sector. And part of the problem – again – is the tenants aren’t necessarily aware of their rights. While tenants don’t insist on protection, dodgy landlords will continue to get away with being dodgy. So here’s our quick guide to what tenants need to know about deposits; don’t rent without it.
1) When you pay a deposit to your landlord, s/he must register it with one of three deposit schemes. This may be the DPS, who hold the deposit themselves, or mydeposits or the Tenancy Deposit Service, which are insurance-based schemes where the landlord or agent will hold the deposit during the tenancy.
2) Within 14 days, your landlord must give you the details of which deposit scheme they’re using. This will include details about how to recover your deposit at the end of the tenancy.
3) If your landlord hasn’t given you this information, ask them which deposit protection scheme they are using. If they are not protecting your deposit, you can apply to your local county court who can require them to either protect it, or pay it back to you. If they have not protected your deposit, the court can order them to repay up to three times the amount of the deposit to you.
4) During the life of the tenancy, keep your details up to date with the person or organisation holding your deposit.
5) When you move out, agree with the landlord or agent how much of the deposit is to be returned to you; you should receive the agreed amount within 10 days.
James Davis - Upad
A guest post by James Davis, the CEO of Upad.co.uk, the UK’s leading online lettings agent. Upad lists your rental property on 100+ sites and portals – including Rightmove – for just £59: tenant guaranteed. Follow the Upad blog and on Twitter for rental industry news and tips for landlords on making the most of your properties
