mydeposits.co.uk, a Government-approved tenancy deposit protection scheme, is warning landlords they must provide sufficient evidence should they need to withhold part or all of a deposit.

Some disputes arise because the landlord unfairly withholds the deposit. However, a growing number of reputable landlords who find tenants have damaged their property at the end of a tenancy are having to dig into their own pockets because they do not have enough evidence to justify withholding all or some of the deposit.

Landlords are entitled to withhold deposit money to cover damage beyond fair wear and tear that tenants cause during a tenancy. Under deposit protection legislation, tenants can now formally dispute the amount withheld. If the landlord cannot provide evidence of damage or failure to clean, tenancy deposit protection schemes will often have no choice but to find in favour of the tenant.

Figures from mydeposits.co.uk for the third quarter of 2008 show that out of 125 disputes dealt with by independent adjudication, tenants received all or part of their deposit back 91 per cent of the time.

Tenancy deposit protection legislation was introduced to protect the rights of tenants by ensuring deductions from deposits are genuine. The onus is on the landlord to show any money being withheld is for a good reason.

David Salusbury, Chairman, mydeposits.co.uk, commenting on the latest figures, said:

“Landlords who genuinely need to withhold a tenant's deposit at the end of a tenancy are able to do so, but they must take some simple steps to show any deductions are justified and proportionate. Preparing an agreed inventory with the tenant will provide evidence of any damage to the property or furniture, while bank statements can be used to highlight non-payment of rent. Photographic records can also be useful, as can any exchanges of correspondence.

“The vast majority of tenancies end harmoniously but when problems do arise landlords need to be prepared to safeguard themselves against abuses of the system. Although the deposit remains the property of the tenant, landlords should not find themselves paying for any tenants' misdemeanours out of their own pockets.”

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For further information and case studies of tenants, landlords and letting agents who have been using mydeposits.co.uk, please contact:

Anthony Zahra mydeposits.co.uk T: 020 7840 8925 E: anthony.zahra@landlords.org.uk

NOTES TO EDITORS:

About mydeposits.co.uk:

Mydeposits is the trading name of Tenancy Deposit Solutions Limited, a company jointly owned by the National Landlords Association and HFIS plc T/A Hamilton Fraser Insurance (the Scheme Administrator) to deliver an insurance-backed tenancy deposit protection scheme under contract from Communities & Local Government. Landlords wishing to use this scheme are required to register with the Scheme Administrator. They can find out more and register by visiting www.mydeposits.co.uk. Registered members of the Scheme are able to protect and unprotect deposits at the beginning and end of tenancies. Fees are tax-deductible. In the event of a dispute at the end of the tenancy agreement, both parties are offered access to alternative dispute resolution (ADR). This procedure will be evidence-based, relying on documentation and records.

About Hamilton Fraser Insurance:

Hamilton Fraser Insurance is the trading name of HFIS plc, a long-established insurance broker, authorised and regulated by the Financial Services Authority. Hamilton Fraser provides insurance services to clients throughout the UK and is located in New Barnet, Hertfordshire. Hamilton Fraser is a major player in the highly specialised property insurance sector, and offers a tailored product to both residential landlords and managing agents. The NLA and Hamilton Fraser have a long-standing relationship, with Hamilton Fraser offering its range of Landlord Solutions insurance products to members of the NLA.

About the National Landlords Association:

The National Landlords Association (NLA) exists to protect and promote the interests of private residential landlords. With almost 20,000 individual landlords from around the United Kingdom and over 90 local authority associates, it provides a comprehensive range of benefits and services to its members and strives to raise standards in rented accommodation. The NLA seeks to safeguard landlords' legitimate interests by making their collective voice heard by local and central government and the media. The NLA seeks a fair legislative and regulatory environment for the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities.