Most Landlords 'Keep The Tenants' Deposits'

Whilst many of us own our own homes there is still a large proportion of the population who do not and are in rented accommodation. This has its benefits as well as it detriments. Tenants and landlords both have legal rights in agreements set up and should make sure they know what they are as it seems some property-owners are taking more than their fair share.

Most landlords in the UK choose not to return a deposit once a tenant decides to leave their property, it has been reported. According to Alliance & Leicester Mortgages, well over half of property owners do not return the amount, often claiming damage-related reasons.

More than a quarter believe that the state of the property was not as it should be, while over one in six landlords commented that tenants did not pay their bills. Cleaning costs was another factor, as was problems with the furniture and unpaid rent.

"Agreeing on an inventory, taking photos before tenants move in or employing a letting agency can minimise the risk of any arguments," said head of specialist mortgages at Alliance & Leicester.

Being a landlord means gaining not just an additional property, but all the responsibilities that come with tenants living there. A new scheme, The Tenant Deposit Scheme, introduced by the government should benefit both landlords and tenants.

It is designed to protect the tenant's deposit, as well as providing an impartial resolution process for those cases that have got out of hand. There is a legal obligation for all landlords in England and Wales to join one of the schemes nominated by the Government.

However, when questioned, over half of all landlords were unaware of the new scheme, and a further quarter was aware of it, but didn't really understand what it meant for them. Just under a quarter of all landlords questioned knew about the scheme and understood the details.

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