One of the biggest changes in Property Management in recent years has been the requirement to transfer deposits to a third party scheme. This is a legal requirement which has been in place since 2012. All of Mavor & Company’s managed tenants have had their deposits transferred to Safe Deposits Scotland. This means that the Landlord is protected legally.
The process at the end of a tenancy has now changed dramatically. Tenants can request their full deposit back from Safe Deposits Scotland immediately. However, Landlords have the opportunity to make a claim on the deposit based on how they deem the condition to be. If the tenant disputes the Landlord’s claim, and no agreement can be met, the issue can go to the deposit scheme’s adjudicator who’ll award the deposit, or a proportion of it, to either the landlord, the tenant or both parties. Once the decision is made, it’s final. Because of this it’s crucial to have as much evidence to support your claim as possible. The best way to do this is to have a written inventory, with dated photographs, at the start of the tenancy and a check out report with dated photos at the end of the tenancy. Without these, it is highly likely that the deposit will be awarded to the tenant regardless of the condition of the property. Mavor & Company can produce inventory reports for you, along with the photographs; please feel free to contact us on 01506 870204 for further advice.
We’re aware that many landlords, when managing their own properties, feel that they’d rather hold the deposit themselves as it gives them control over possible reimbursement if their property is not in an acceptable condition at the end of a tenancy. We strongly advise against this practice. The law states that Landlords who do this can be fined up to three times the amount of the deposit. There have been several instances of this happening over the last few years and as tenants become more aware of their rights, more landlords are being taken to task for not complying with the regulations.
It shouldn’t be underestimated how big a change this is and Mavor & Company will be more than happy to give further advice on the matter. Please call us on 01506 870204 or email us at email@example.com.