The importance of a tenancy deposit.

Choosing the right tenant for your property can be tricky. Sometimes the perfect tenant comes along, they want to stay in your property forever and make it their home. They love, respect and admire your property.

However, sometimes you think you have that perfect tenant, but quickly realise you made a wrong decision.

Perfect tenants don’t need a blog post about them, they’re perfect. This is about the not so perfect ones.

To make sure you’re protected even when you make that flawed decision, tenancy deposits were invented.

The tenancy deposit is a key part to trusting a tenant to rent your property. It protects the landlord in the event of the tenant damaging the property or leaving without paying the rent.

What the tenancy deposit covers should always be confirmed in the tenancy agreement that both the tenant and the landlord/letting agent signs. The deposit belongs to the tenant and should be returned at the end of the tenancy, on the condition the property is in the same condition as before they moved in.

During the course of the tenancy, the deposit should be kept in a third party deposit protection scheme (see our blog on how to avoid disputes to find out which on is best for you).

If by any chance, losses do occur, the landlord is entitled to make reasonable deductions from the deposit to cover them (reasonable means you don’t charge a grand to clean a bathroom).

The deposit size often depends on the monthly rent. Normally it is the equivalent to one or two months’ rent. However, there is no legal restriction on the amount that may be asked for (but you will find it more difficult to find a tenant who will pay anymore than that). A larger deposit may be requested if a landlord is concerned about previous tenancies or the tenant’s credit rating.

Having a detailed inventory report will play an instrumental asset for both parties when it comes to the end of the tenancy. Although it is not the law to conduct an inventory before a tenancy, it is rare not to do so. An inventory will give a detailed description of the property before the tenancy and can assist in making sure no damages have occurred in the duration of the tenancy.

Third party inventory providers can be unreliable and in-house can take a big chunk out of your day. Digital inventory creating software cuts the time to create an inventory by 80% and ensures that every report is professional, detailed and accessible.

You May Also Enjoy

Breaking News

Breaking Property News – 28/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Birchgrove and Hybr launch intergenerational living scheme A unique partnership will see students, key workers and retirees live together at new north London retirement development. Birchgrove, the UK’s leading provider of rented retirement homes, and Hybr, the UK’s leading student letting platform, today announce an industry-first…
Read More
Estate Agent Talk

Benefits Of Choosing Roger Bates Properties

Roger Bates Properties stands out as a prominent real estate agency that offers a myriad of benefits to individuals seeking to buy, sell, or invest in real estate. With a stellar reputation and a commitment to excellence, choosing Roger Bates Properties can prove to be a decision that yields numerous advantages. 1. Experience and Expertise…
Read More
Love or Hate Rightmove
Breaking News

Rightmove’s weekly mortgage tracker – 28/02/24

The average 5-year fixed mortgage rate is now 4.80%, up from 4.59% a year ago The average 2-year fixed mortgage rate is now 5.15%, up from 4.92% a year ago The average 85% LTV 5-year fixed mortgage rate is now 4.73%, up from 4.64% a year ago The average 60% LTV 5-year fixed mortgage rate is now 4.30%, up from 4.25% a year ago The average monthly mortgage payment on a…
Read More
Love or Hate Rightmove
Breaking News

Rightmove calls for stamp duty reform with only 4% of London homes exempt

Ahead of the Spring Budget on March 6th, the UK’s biggest property website Rightmove suggests three policy reforms that could help people moving home: A reform of stamp duty to consider regional property price variations: Only 4% of homes in London are stamp duty exempt for all buyers, compared to 71% in the North East Less than…
Read More
Breaking News

Breaking Property News – 27/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Alto reveals ‘next generation’ of Lettings Progression Alto, software for estate agents and part of Houseful, has revealed further information about the improvements being rolled out in 2024 to drive a step change in business efficiency for letting agents. Leading the way is a…
Read More
Home and Living

The Versatility of Parquet Flooring in Contemporary Homes

What comes into your mind when you hear about parquet flooring? Most probably Victorian era, historic estates, grand ballrooms, and grand mansions but what if I tell you that the parquet flooring has redefined itself with warmth, texture, and classic elegance? Parquet flooring in contemporary homes is a delight to the eyes because when you…
Read More