Money Story

04 July 2009 17:04 BST

1 in 3 renters' deposits not protected

A third of renters are not being protected by the government's tenancy deposit protection (TDP) schemes, according to new research.

TDP schemes were introduced in April 2007 to protect deposits – often treated by landlords as interest free loans or not returned at all – but while all new tenancy should be protected many are not.

A poll by LV= reveals 29 per cent of renters who have moved in the last 12 months are not part of a TDP scheme, despite it being a legal requirement.

Half of current renters are unaware of the scheme and 27 per cent of private renters say their landlord is signed up.

John O'Roarke, managing director of LV= home insurance, said: "This research highlights the need for the government to raise the profile of this legislation and for it to be more strictly enforced, to protect both renters and landlords, as awareness is currently very low.

"The average deposit is over £500, which is a significant amount of money, so renters need to make sure they know their rights."

Deposit tips

1. When you first move in, make a note of any existing damage, such as marks on the carpet or walls, and ensure your landlord agrees that the damage already exists.
2. Ensure you have an inventory and carefully check that it corresponds with all the items in the property.
3. Ensure you have a home contents insurance policy that includes a legal advice helpline, in case of any problems, and accidental damage cover so if you do cause any damage you can claim. 4. Give the property a good clean before you leave and take any rubbish away. Meet your landlord at the property so you can run through the inventory and any damage before you leave.
5. Ensure all communication with your landlord is in writing throughout your tenancy.
6. Be aware that a certain amount of wear and tear on a property is to be expected and your landlord cannot withhold your deposit for this reason alone.
7. Consider carefully whether to accept a cheque for the return of your deposit as it can be stopped by the landlord after issue.
8. If you have taken all the steps above and your landlord is still withholding your deposit, and you are not part of a tenancy deposit scheme, obtain legal advice from your insurer or the Citizens Advice Bureau .


Which? has also today issued a guide to those renting – especially important as the credit crunch is holding many off the property ladder and into renting.

Kate Faulkner, author of the Which? guide Renting and Letting, said: “With a sudden increase in the number of people wanting rental properties, and the growth in 'accidental landlords', it is bound to lead to more properties offered for rent that are not being let legally.

“Naturally your mind will be focused on checking out the accommodation, not spotting deficiencies in the landlord or agency. But failing to check out your landlord or agent before signing an agreement and handing over large sums of money could end up costing much more in the long term.”


Which? tips to renting

Only view properties from landlords or agents that are members of a recognised trade association.
Do not agree to rent a property unless your deposit is protected in one of the government approved Tenancy Deposit Protection Schemes.
Reputable agents or landlords will not ask for money upfront – you should not have to pay a registration fee.
Any landlords/agents that don’t return calls, miss appointments and do not have good administration should be avoided.
Always ensure you have receipts for money handed over, and keep them safe.
A good landlord or agent will give you time to read agreements and check inventories thoroughly – do not allow yourself to be rushed.
Tenancy agreements that are not written in plain English and include a plethora of financial penalties usually indicate a dodgy letting agency.
Don’t just sign the agreement in the office – take a copy home and read it before signing.