Deposits

A deposit is paid at the start of a tenancy to hold against any damage other than fair wear and tear that may happen during the tenancy.

A deposit can be used to compensate the landlord if the tenant:

• leaves the property owing rent
• damages the property
• does not pay their bills

A deposit should be paid when you sign the contract. Do not pay a deposit to hold a house as you could lose it if you decide not to sign.

However be aware that the contract will not be legally binding for either party until consideration (money) is received by the landlord.

If you pay by cash get a receipt for the deposit you pay, or pay by bank transfer or card and keep your proof of payment (on your bank statement) in a safe place.

Before you move in the landlord or agent should draw up an inventory of furniture, kitchen equipment and other items in the property as well as detailing the condition of the property. You should both agree on the list's contents by signing and dating the inventory.

All deposits must now be protected by one of the government-approved tenancy deposit schemes. This means your deposit will either be held by an independent body who will arbitrate in the event of a dispute, or it will be held by an agent that is approved and regulated by a governing body such as A.R.L.A.