Tenancy Deposits: Landlord's money?
Are you a Landlord? Do you know the valid deductions from the Tenancy Deposit to cover repairs and/or outstanding rent arrears?
There are a number of myths and questions surrounding private tenancies. It is our intention to tackle some of these in a series to follow on from this post.
Today we look at the assumption that “Deposit money is the landlord’s money to use at the end of a tenancy”.
Most people are now aware that landlord’s must use a tenancy deposit scheme. In Scotland there are currently 3 providers:
At the end of the tenancy the landlord applies to the tenancy deposit scheme for the repayment of the deposit. This application includes details of deductions for repairs and/or outstanding rent arrears, and the amount of the deposit to be returned. The tenant will be contacted to see whether they agree with the deductions. If there’s agreement then the deposit will normally be returned within five working days.
We are often consulted by landlords to negotiate on their behalf to ensure that all valid deductions are taken into account.
If agreement is not reached over any deductions that have been applied, then the parties can use the Scheme’s dispute resolution process. It is a prerequisite to try to reach agreement before the process can be used.
Any dispute will be handled by an independent adjudicator, who will be issued with any evidence submitted. The adjudicator will make a decision within 20 working days. This is subject to review if the decision is disputed. A review is the final step available and this decision is binding on both parties.
If we can assist you negotiate agreement on the valid deductions that can be made, then please contact our Lissa McGregor in our Glenrothes office.
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