Everything You Need To Know About Tenancy Deposit And Laws To Protect It
Tenancy laws are formulated to protect the rights of tenants, as well as of the landlords. Tenancy deposit protection laws are the laws that aim to provide security to the landlords so that the tenant will not damage their property. It also protects the tenants from being removed from the property without prior notice.
If you are confused about deposit fees and do not understand how much you should pay, here is a guide for you to understand this complex process.
What Is A Tenancy Deposit?
A tenancy deposit is a small number of fees that a tenant has to pay to the landlord or the letting agent when moving into a rental property. This deposit has to be paid to the landlord at the time of signing the tenancy agreement and before moving into the property.
In simple words, a tenant is bound to pay a fee, approximately a five week’s rent, or a maximum of 6 weeks in case your rent is high, to the landlord. The tenancy deposit is commonly called a security deposit that is to be returned by the landlord when the tenant leaves.
How Much Should You Pay For The Deposit?
If you are confused about how much you should pay for the security deposit and fear that your landlord might be asking for more than legally required, then you should be able to calculate the accurate amount yourself. This can be done easily and with simple maths.
Many people make the mistake of dividing the month’s rent by four weeks. This can give you a wrong calculation as some months can be longer than four weeks. The easiest way is to find out one week’s rent.
Simply multiply your month’s rent by 12 (months in a year), and divide the results by 52 (weeks in a year). This way you will get one week’s rent. Now you can multiply one week’s rent by 5 to find the accurate security deposit you have to make.
This calculation can make it easier for you to deposit just the right amount needed. You can avoid paying more than required.
Are The Landlords Legally Obligated To Ask For A Deposit?
You must be wondering why you should pay a tenancy deposit when you are paying a month’s rent? The landlords may not be legally obligated to ask for the tenancy deposit, however, it is a good practice to take a 5 week’s rent with the first month’s rent before the tenant moves in.
A tenancy deposit protects the landlord from damage to the property. If the tenant causes any damage to the property, the landlord can take the expense from the security deposit. It also protects the landlord from missing rent, in case the tenant does not pay rent.
A tenant deposit also protects the tenant from illegal removal from the property. The landlord can not ask the tenant to leave the rental property without prior notice. In case the tenant has to leave the place, the tenant should be able to pay for his move.
What Happens If Tenant Decide To Leave The Property?
If a tenant decides to leave the rental property, then the landlord is obligated to pay back the tenancy deposit. Tenancy deposit protection laws aim to protect the tenant. A tenant should know how to claim when deposit not protected by the landlord.
Tenancy protection laws aim to protect the rights of a tenant. Landlords can not hold the tenancy deposit if the tenant has regularly paid the rent and caused no damage to the property.
