Tenants losing thousands of pounds in deposits

Tenants are still losing thousands of pounds in deposits each month by not sticking to tenancy agreements, according to mydeposits.co.uk, a Government-authorised tenancy deposit protection scheme.

The average deposit protected at mydeposits is now £771 and with 12 per cent of all disputes in July 2008 finding in favour of the landlord or agent, it is estimated that tenants could be losing in excess of £15,000 per month by not keeping to the terms of their tenancy agreements.

Mandatory tenancy deposit protection (TDP) rules were introduced to ensure a fair and balanced way for landlords and tenants to resolve any disputes at the end of a tenancy. Since April 2007, landlords have to give reasons and evidence (if called upon) if they withhold some or all of the deposit. As long as tenants read and understand their responsibilities in their tenancy agreements, landlords are not permitted to unfairly withhold their cash.

mydeposits is helping tenants by providing concrete advice on how to keep their deposits:

TOP TIPS FOR TENANTS: HOW TO KEEP YOUR DEPOSIT

1. What would your mother say? Keep it clean!

You are most likely to lose your deposit in order to cover cleaning costs. This doesn't come cheap either. Cleaning bills account for 38 per cent of all deposit disputes. So avoid being stung for the cost of a professional clean by keeping the property in a reasonable condition throughout the tenancy. Little and often makes it bearable.

2. Treat it like your own

If you cause damage to the property, furniture or white goods you can expect to cough up. The repair costs will be deducted from your deposit. If you damage something by accident, give your landlord a ring and be honest. And if it's not too expensive, it might be cheaper to get it fixed or even replace it.

3. Money, money, money

Like the rest of us, landlords have got to pay their bills too. Falling into rent arrears is a sure-fire way of losing your deposit. Paying rent on time should be a high priority but if things do go wrong, give your landlord plenty of notice and see if you can arrange a suitable repayment plan. Most landlords will be flexible to a degree.

4. Signing on the dotted line matters

The contract you sign is a legally binding document enforceable through the courts. Read it carefully before signing and make sure you stick to the agreed terms. For example, if you agree to give 30 days' notice before ending the tenancy, you run the risk of losing your deposit if you don't do as the contract dictates.

5. Make sure your deposit is protected

The deposit protection law was designed to protect tenants from the small number of rogue landlords who unfairly withhold deposits: make sure your deposit is protected. Your landlord must show you proof of protection within 14 days of receiving the cash and they face stiff penalties if they don't.

David Salusbury, Chairman, mydeposits.co.uk, said both tenants and landlords need to be aware of their rights and responsibilities: "Most tenancies end amicably but it is a two-way relationship. Most landlords behave fairly and only withhold deposits where necessary. But it's also incumbent on tenants to ensure they treat the property with respect and pay their rent on time. If tenants act according to the rules laid out in their agreements, a landlord has no right to withhold their deposit.

"The onus remains firmly on the landlord to comply with the law but it makes sense for tenants to ensure their deposit is protected by asking to see confirmation. Landlords must provide proof of protection within 14 days of receiving the deposit."