LANDLORDS - New ‘Tenancy Deposit Cap’ and other Rules apply from 1st June
From 1st June 2019, the maximum Deposit landlords will be able to request is a
security/damage deposit of five weeks’ rent and agents will only be able to request a
holding deposit of one week’s rent when tenants apply to rent a property.
The holding deposit must be put towards the rent if the application is successful.
Landlords will NOT be able to charge a higher tenancy deposit than the maximum 5
weeks even when allowing for pets for example.
Any Deposit amounts that are currently held above the 5 week maximum amount
will also have to be refunded to tenants when renewing. Calculating the correct deposit
amount to ask is straightforward at 1 month’s rent x 12 / 52 = 1 week’s rent. Multiplied
by five, gives the accurate allowable security deposit amount.
As professional and experienced letting agents we cover the pet situation pretty
thoroughly in our tenancies anyway with professional carpet cleaning clauses and a
very thorough Photographic Inventory Record and, in our experience, damage by
pets is rare. Whilst an additional ‘pet’ deposit is not allowed, landlords are not prohibited
from seeking and advertising a slightly increased rent for accepting pets. For professional
lettings advice contact you local Adams Office.