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Rental Deposits

21/12/2016 16:35

Rental Deposits and Their Protection

This is a common thing and unfortunately a lot of agents and landlords have perhaps been dishonest in the past.  To combat that, there is strict deposit law which has been brought in so we have to answer to the relevant scheme that we’re in and where we log our deposits, which in our case is the DPS scheme. 

We like that because we send them the money, we send it away, we register everything within the 30 days, we sign the forms so that the tenant is aware of what’s going on, a lead tenant is assigned.  Then at the end we’ll do a check out, work out any deductions if any (because our aim really is to give that deposit back in full).

The common misconception is that when the tenant pays a deposit, they are paying money to somebody else when all they are doing (it’s almost like staying in a hotel for the night), is depositing a security against the property. 

Now that money, it’s not the landlord’s, it’s not the agent’s, it’s the tenant’s money which is held in trust for the duration of the tenancy. 

At the end we do the check out, due diligence, and if there’s no damages that money goes back to them, and part of the reason that we found for disagreements is that we assumed that people knew at the beginning that they should, ‘give it back as you found it’, less some wear and tear, and the deposit will come straight back to you. 

But what we found was that actually, if we do a little bit more to inform them towards the end of a tenancy, then our tenants will make more of an effort to give it back as they found it. 

We designed a really lovely, vibrant, easy to read, easy to understand form, which we send out around a month or a month and a half before check out. It explains if you follow this and you do this, the deposit will flow straight back to you. 

And although in the past there are some agents and landlords who have perhaps been dishonest, that is why a lot of talk regarding deposits gets vilified.

And as well I think some tenants think that they’re hard done by when they’ve caused damage or not left the property in clean order. 

Then it’s difficult for an agent, it really is.  I’m not saying that all agents are the same but we approach from a sitting on the fence point of view; we look at both sides of the story and we make our own mind up and come to a conclusion.

We’re always very, very fair and will always correct things in the event of us getting it wrong.

For example we have done recently where they said ‘oh you’re charging me for a burn mark in the carpet’.

We said it wasn’t there before and he said that it was.

We said OK no problem bear with us. 

So we went back through our inventories and went back through it all and found that our tenant was right. So we cancelled, we renewed the payment and they had the deposit back in full).  

We’re only human and it’s very much a democracy.  If we get it wrong, we admit we got it wrong, no problem and that’s it. But more often than not we’re very, very spot on with what we’re doing.


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Call Us today on 01792 652 620
Charles Perrett Property Ltd. 6 Walter Road, Swansea, SA1 5NF
Charles Perrett is an award-winning Swansea Letting Agent specialising in Student Accommodation in Swansea, Property Sales and Investments, Property Management, Property Maintenance Including Residential and Commercial Cleaning, Construction and Development and HMO Licensing Work.
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Rental Deposits

21/12/2016 16:35

Rental Deposits and Their Protection

This is a common thing and unfortunately a lot of agents and landlords have perhaps been dishonest in the past.  To combat that, there is strict deposit law which has been brought in so we have to answer to the relevant scheme that we’re in and where we log our deposits, which in our case is the DPS scheme. 

We like that because we send them the money, we send it away, we register everything within the 30 days, we sign the forms so that the tenant is aware of what’s going on, a lead tenant is assigned.  Then at the end we’ll do a check out, work out any deductions if any (because our aim really is to give that deposit back in full).

The common misconception is that when the tenant pays a deposit, they are paying money to somebody else when all they are doing (it’s almost like staying in a hotel for the night), is depositing a security against the property. 

Now that money, it’s not the landlord’s, it’s not the agent’s, it’s the tenant’s money which is held in trust for the duration of the tenancy. 

At the end we do the check out, due diligence, and if there’s no damages that money goes back to them, and part of the reason that we found for disagreements is that we assumed that people knew at the beginning that they should, ‘give it back as you found it’, less some wear and tear, and the deposit will come straight back to you. 

But what we found was that actually, if we do a little bit more to inform them towards the end of a tenancy, then our tenants will make more of an effort to give it back as they found it. 

We designed a really lovely, vibrant, easy to read, easy to understand form, which we send out around a month or a month and a half before check out. It explains if you follow this and you do this, the deposit will flow straight back to you. 

And although in the past there are some agents and landlords who have perhaps been dishonest, that is why a lot of talk regarding deposits gets vilified.

And as well I think some tenants think that they’re hard done by when they’ve caused damage or not left the property in clean order. 

Then it’s difficult for an agent, it really is.  I’m not saying that all agents are the same but we approach from a sitting on the fence point of view; we look at both sides of the story and we make our own mind up and come to a conclusion.

We’re always very, very fair and will always correct things in the event of us getting it wrong.

For example we have done recently where they said ‘oh you’re charging me for a burn mark in the carpet’.

We said it wasn’t there before and he said that it was.

We said OK no problem bear with us. 

So we went back through our inventories and went back through it all and found that our tenant was right. So we cancelled, we renewed the payment and they had the deposit back in full).  

We’re only human and it’s very much a democracy.  If we get it wrong, we admit we got it wrong, no problem and that’s it. But more often than not we’re very, very spot on with what we’re doing.


Back to blog ....
Call Us today on 01792 652 620
Charles Perrett Property Ltd. 6 Walter Road, Swansea, SA1 5NF

Charles Perrett is an award-winning Swansea Letting Agent specialising in Student Accommodation in Swansea, Property Sales and Investments, Property Management, Property Maintenance Including Residential and Commercial Cleaning, Construction and Development and HMO Licensing Work.

Sitemap | Terms & Conditions | Privacy Policy | Cookies Policy

© Charles Perrett Property Ltd 2017. All rights reserved. Powered by BaySoft