What to do if there is a dispute over your rental deposit
When you rent a property for the first time, it is usual to pay a substantial deposit. This is normally at least one month’s rent, which is repayable at the end of the tenancy. A landlord or managing agent may sometimes refuse to pay some or all of this deposit back, so let’s take a look at what can you do when this happens.
Joint tenancies
If you are in a joint or multiple tenancy, the total deposit is treated as a lump sum and one tenant has to act as lead tenant, making them responsible for getting the deposit back and disputing any deductions on behalf of everybody.
If there is a change to a tenancy when one tenant moves out and another tenant moves in, the protection on the old deposit will end; therefore, it is important to protect the deposit on the new tenancy as soon as possible.
If you are a landlord who owns a rental property on a joint tenancy basis and you split with your partner, you can apply for severance of joint tenancy. This is a legal process that changes the ownership to a tenancy in common and needs to be signed and witnessed. Law firms such as https://www.parachutelaw.co.uk/severance-of-joint-tenancy can explain how severance of joint tenancy works and complete the process for you.
Deposit protection
The government runs a free tenancy deposit protection scheme (TDP), which is a resolution service between landlord and tenant or tenants. If a tenant disagrees with how much of the deposit the landlord wants to keep, they can, in agreement with the landlord, use the service. Both parties have to provide evidence and abide by the decision.
Tenants are sometimes unable to get hold of their landlord, but they can still raise a dispute if their deposit is covered by one of three approved TDP schemes: the Tenancy Deposit Scheme, Deposit Protection Service, and mydeposits. If the resolution service agrees with the tenant, the deposit is refunded through the TDP scheme.
Landlords should protect every tenancy deposit; however, those whose deposit is not covered by a TDP scheme should contact the landlord in the first instance. If they get no response, they can apply to their local court.