Why is it needed?

The return of a deposit at the end of a tenancy is by no means guaranteed. For example, in 2005/6: * 70% were returned in full * 19% were returned in part * 11% were not returned at all The reasons given by landlords for withholding some or all of a deposit were: * Damage to the property (28%) * Cleaning the property (34%) * Unpaid rent or bills (8%) * Other reasons (30%)

Nearly one in five (17%) of tenants who had some or all of their deposit withheld felt that it had been withheld unjustifiably. The new tenancy deposit protection schemes will ensure all landlords safeguard the deposits they take, which is in every landlord and tenant's interests.

Who is affected?

The legislation covers virtually all new AST contracts through which private landlords let property in England and Wales. However, the following will not need to be registered with a tenancy deposit protection scheme:

1. Resident landlords (those living in the property)
2. Landlords of properties with rent of over £25,000 a year
3. Company lets
4. Student accommodation let directly by universities or colleges.

Deposits taken before 6 April 2007 do not need to be protected by a scheme. However, as an existing tenancy is renewed and a landlord agrees a new fixed-term tenancy, the initial deposit taken must then be lodged with a tenancy deposit protection scheme.

What do Winchester Lettings do?

Winchester Lettings will lodge all deposits under the following scheme on our landlords & tenants behalf. The Deposit Protection Service The Pavilions Bridgwater Road Bristol BS99 6AA Click here for further info...

A zero deposit option for tenants, a smart option for landlords…

FCC Paragon has recognised the potential problems for both landlords and tenants when it comes to deposits on rental properties. With more and more legislation which landlords have to adhere to for holding tenants deposits and the increasing cost of living which may mean tenants can’t afford the upfront cost of a deposit, we thought it was about time something changed!

Smart deposit is a warranty product which benefits both the landlord and the tenant. It allows the tenant to move into a property without having to find a large, sometimes unaffordable upfront sum and it covers the landlord for damage to the property AND unpaid rental.

Benefits for Landlords

• Landlords can attract a wider range of tenants by not having to ask them to provide a deposit.
• Landlords do not have to worry about holding a tenants deposit in a costly national scheme.
• Landlords have damage (dilapidations) cover for up to 2 months rental value. The normal deposit taken from a tenant is between 4 and 6 weeks rent, so the landlord actually has increased protection using smart deposit.
• Smart deposit covers the landlord if the tenant vacates the property without paying the last month’s rental (or a proportion of it) as well as covering damage costs.

If a claim is accepted, smart deposit process payment within a 14 day period so the landlord doesn’t have to wait too long. This may not be the case if requesting a tenant’s deposit out of a national scheme.

Click here to email us for more information regarding smart deposit solution or call us on: 020 8466 6206