Deposit scheme suffers according to landlords
January 5, 2010
According to a recent report many landlords and tenants are concerned that a government deposit scheme that is supposed to protect the deposits of tenants will end up suffering as a result of measures brought in to try and cut costs.
The independent deposit schemes were brought in to help protect deposits and resolve disputes, and came into play in 2007. There are three independent schemes that can be used altogether in order to protect the deposits of tenants.
The way in which the schemes work means that if landlords feel that they have the right to keep any of the deposit at the end of the tenancy to replace damaged items or carry out repairs they must provide evidence that the tenant is responsible for the damage and for paying for the damage. If any disputes arise as a result of the claims then independent adjudicators are used to resolve the issues.
However, it has been revealed that the biggest of the three deposit schemes, which is the Tenancy Deposit Scheme, has cut right back on the number of adjudicators just at a time when the demand for rented property is on the increase. The Tenancy Deposit Scheme has cut back on its team of adjudicators taking the number from seventy right down to just twelve. The National Landlords Association has now stated that the cutbacks could affect the quality of the scheme and could result in increased pressure for remaining team members.
The Tenancy Deposit Scheme, however, claims that the service will not suffer, with a spokesperson for the scheme stating: ‘We’ve brought adjudication in-house, which should make it a quicker process. We have a near 50:50 split on cases in favour of the tenant or landlord, so there is no bias.’
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