The rental process can seem daunting and there are lots of areas which can cause confusion, one of these is often around the security deposit process. At JNR Properties, we always aim to be as transparent as possible, so we have broken down the protocol surrounding the deposit scheme to help explain it, but our team are always happy to guide you through the process and answer any questions you may have. More in-depth information can be found on the Deposit Protection Service website.
What is a Security deposit?
A security deposit is a payment to help guarantee that the contract-holders will treat the property with respect throughout the duration of their Occupational Agreement. The security deposit may also be referred to as a “bond” or a “damage deposit”. Assuming tenants take care of the property as if it was their own home and leave it clean and tidy upon moving out, the deposit will be returned in full to the contract- holders. “Fair wear and tear” is taken into account when assessing the condition of the property at the end of the tenancy period.
How much will I have to pay?
The amount you will be asked to pay depends on how much the rent is for a property. Our landlords all request 5 weeks rent for the security deposit. This is often taken in two stages. An initial one weeks rent, paid as a holding fee, to secure the property and take it off the rental market and then a payment for a further 4 weeks rent to make up the 5 weeks.
Where is my deposit held?
All deposits paid for the properties let through JNR are sent to the Deposit Protection Service (DPS). Within 30 days of the deposit being paid, it will be registered with this government approved scheme. Find out more here.
What responsibilities do tenants have for the upkeep of the property?
Under your Occupational Agreement you have a responsibility to act in a “contract-holder-like-manner”. Therefore, as tenants you must respect the property and do your best to keep it well maintained. When signing up to a tenancy it is a joint contract between all tenants and the landlord with one joint deposit for the property in its entirety. This means in order to receive the deposit back in full, all contract-holders are equally responsible for the property and ensuring they all leave the property in good condition. Read more about “contract-holder-like-manner” here.
How do I get my deposit back?
Once your deposit has been processed, the person named on your Occupational Agreement as the lead contract-holder will receive an email directly from the DPS detailing the process. The lead contract-holder will be issued a Deposit ID to be able to create an account online with the DPS to keep track of the deposit and to get in touch with them if required.
A few weeks prior to the end of the tenancy an email will be sent to tenants with details of what is required of them before they move out. This includes information around the exit inspection, returning keys and taking final meter readings. If this process is followed, then the end of the tenancy should be a straightforward process. Our team are on hand to answer any further questions tenants have in relation to the exit process.
For let-only properties, tenants must deal directly with their landlord.
What are the most common reasons for losing part of my deposit? There are a number of frequent issues that landlords see when it comes to their exit inspections requiring charges to be taken from the deposit. These include a cleaning charge at the end of the tenancy, damage to fixtures and fittings, keys not being returned, replacement locks, missing lightbulbs and rent arrears. “Fair wear and tear” in proportion to the number of tenants and the length of the tenancy is of course taken into account and it is only issues above this that will be charged for.
What is the role of the DPS?
In essence, the role of the DPS is to ensure that tenants are treated fairly at the end of their tenancy.
Should the landlord need to claim for money from the deposit to cover any repairs or cleaning required at the end of the tenancy and the contract-holder disputes the need for the charges, the DPS will step in. They will oversee the dispute, carry out a review and if required appoint an independent adjudicator to make a final ruling. The adjudicator will ask for any evidence from both sides. Therefore, to reduce the chance of any disputes, it is important that the inventory tenants are given at the start of their tenancy is carefully checked through and signed by both parties. We ask that any issues noted within the property are reported within the first 2 weeks of the tenancy and an updated inventory returned to us. If we do not hear from tenants within the first 2 weeks, then they are deemed to have accepted the property as is. Throughout the duration of the tenancy any new issues that come up should then be reported as a maintenance request via PropertyFile. Tenants have a responsibility to report any issues immediately so that the condition of the property does not deteriorate further.
For further information visit the Deposit Protection Service website.
