Will I need cover for any deposits put down on the house by the tenants?
Yes you will, The Tenancy Deposit Protection Scheme was put in place to ensure tenants get the appropriate amount of deposit back at the end of their tenancy. They will only receive the full amount if they have met the terms of their tenancy agreement and left the property in good condition with only the expected wear and tear damage.
This scheme was designed by the government to avoid landlords holding deposits unfairly. It also helps in the instance of deposit disputes, which occur quite commonly between landlords and tenants as the money is kept neither by the tenants or the landlord.
Landlords are required to protect their tenants’ deposit within 30 days of receiving the payment but most will choose to put it straight into a protection scheme. Regardless the type of payment, whether it is a bank transfer, cash payment or cheque, you will need to protect the deposit within the legal guidelines.
If you fail to protect deposits put down on your property then you will not be able to end tenancy or regain possession of your house until the deposit is repaid of the court case is finished. Your tenants can also file for compensation if you do not cover their deposits, which could result in you paying out three times as much as the deposit.