Portsmouth Office: 023 9229 8080
Southampton Office: 023 8055 3355

Landlord Deposits

At least one month’s rent is collected as a security deposit at the beginning of each tenancy. Kings Estates providing you with details of the options on offer whether it be custodial or insurance based deposit schemes.At least one month’s rent is collected as a security deposit at the beginning of each tenancy.

At the end of each tenancy Kings Estates will check the condition of the property against the inventory.

Should any items need to be replaced, cleaned or replaced, such costs can be deducted from the deposit prior to returning it to the tenant.

From 6th April 2007, Tenancy Deposit Protection had to apply to all Assured Short hold Tenancies in England and Wales where a deposit is taken. Under the Housing Act 2004, it is not mandatory to take a deposit from the tenant.

A landlord can make a decision not to take a deposit to avoid the scheme, but in doing so should be aware that should the tenant damage the property or not pay the last months rent, recovery of these losses can only be made through the County Court.

The landlord/agent, not the tenant, will have the option to choose whether to safeguard their deposit in the custodial or insurance-based scheme.

Whether you are a vendor, landlord, buyer or tenant in Portsmouth or Southampton - contact Kings Estates today for friendly, professional advice.
Call our Portsmouth team on 023 9229 8080 or our Southampton team on 023 8055 3355 

Deposit Schemes

Custodial Deposit Scheme Under the custodial scheme, the tenant pays the deposit to the landlord/agent who then pays the deposit into the scheme. Within 14 days of receiving the deposit, the landlord or tenant must register the deposit and give the tenant information about the scheme being used. The scheme is free to the landlord, agent and tenant.

At the end of the tenancy, if the landlord and agent agree how the deposit should be divided (depending on any cost which may be deducted) the landlord/agent will inform the scheme who will, in turn, return the deposit in the agreed proportions. However, if there is a dispute, the scheme will hold the disputed amount until the Dispute Resolution Service or courts decide what is fair. The deposit must be returned within 10 days of the end of the tenancy provided agreement has been reached.
Insurance Based Deposit Scheme Under an Insurance Based Scheme the tenant pays the deposit to the landlord/agent who retains the deposit and any interest earned on the deposit, subject to the terms of the tenancy agreement and pays the premium to the insurer. Currently, the annual cost of using the scheme will be borne by the landlord/agent. As with the custodial scheme, the deposit must be registered within 14 days of its receipt and the tenant be given information about the scheme being used.

At the end of the tenancy, if the landlord and tenant agree how the deposit should be divided (depending on any cost which may be deducted) the landlord/agent will return the deposit in the agreed proportions.

However, if there is a disagreement, the disputed amount is forwarded to the scheme until the dispute is resolved. If, for any reason, the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it.

To discuss cusodial or insurance deposit schemes contact Kings Estates today for friendly, professional advice. Call our Portsmouth team on 023 9229 8080 or our Southampton team on 023 8055 3355 

Alternative Dispute Resolution Service (ADR)To avoid disputes having to go to court, both schemes will be supported by an Alternative Dispute Resolution Service (ADR), although the use of this is not compulsory.

A dispute can be referred to the ADR provided both parties agree to be bound by the ADR decision. The ADR are impartial and all decisions are evidence based.

Failure to comply If a landlord fails to comply with the legislation by not protecting the tenant’s deposit, the Landlord is unable to regain possession of the property using the usual Section 21 notice, if the deposit had not been safeguarded and the necessary information passed onto the tenant within 14 days of receipt.

Tenants can apply for a Court Order requiring the deposit to be safeguarded or the prescribed information to be given to them about the scheme in which the deposit is protected.

Where the court believes that the landlord has failed to comply with these requirements, or the deposit is not being held in an authorised scheme, the court must either order the landlord within 14 days of the order being made, to repay the deposit or order the landlord to pay the deposit to the Custodial Scheme Administrator.

In addition, the court must also order the landlord to pay the tenant a fine equal to three times the deposit amount within 14 days of the order e.g. A deposit of £600 would result in a fine of £1800.

Want to know more about ADR contact Kings Estates today for friendly, professional advice. Call our Portsmouth team on 023 9229 8080 or our Southampton team on 023 8055 3355 

Contact us

Kings Estates Southampton Office:
253 Portswood Road, Portswood,
Southampton, Hampshire, SO17 2NG

Email: southampton@kingsestates.net
Tel: 023 8055 3355

Opening hours
9am - 6pm weekdays
10am - 4pm Saturday
023 8055 3355

Get In Touch
Kings Estates Portsmouth Office:
67 Albert Road, Southsea,
Portsmouth, Hampshire, PO5 2SG

Email: southsea@kingsestates.net
Tel: 023 9229 8080

Opening hours
9am - 6pm weekdays
10am - 4pm Saturday
023 9229 8080

Get In Touch