What is a deposit?

Pickard Properties deal with two types of deposits, tenancy and holding.

A tenancy deposit is a sum of money that a tenant pays to their landlord or letting agent before moving into a rented property. At the end of the tenancy, if there are issues with damage or cleanliness, there can be deductions to the deposit. The deposit remains the tenant’s money, notwithstanding possible deductions, the deposit is returned to the tenants shortly after the tenancy ends.

To safeguard tenancy deposits associated with Assured Shorthold Tenancy Agreements, tenancy deposit protection schemes were introduced in 2007 as part of the Housing Act 2004. There are two ways landlords can hold deposits, via a custodial or insured scheme.

Within 30 days of receipt of a tenancy deposit payment, landlords are required to protect the tenancy deposit with a government authorised scheme. Pickard Properties uses the Tenancy Deposit Scheme (TDS).

Where the deposit is held by the deposit protection scheme, this is a custodial scheme. The scheme is held by the deposit protection scheme until the end of tenancy and is released on the agreement of the tenant and landlord.

Alternatively, there are insured schemes. Deposits are held with the landlord; however, if there is a dispute regarding the return of the deposit at the end of the tenancy, the landlord must give the deposit to the deposit protection scheme. The scheme will then assist the tenant and landlord in reaching an agreement.

Pickard Properties holds deposit via the insured scheme under the TDS. The deposit money is further protected under the Propertymark Client Money Protection scheme.

Holding deposit

A holding deposit is a payment which demonstrates your commitment to rent a property whilst referencing is complete. As a landlord, we are only able to accept one holding deposit at one time for a property.

The holding deposit will be put towards the first rent instalment. Do note, that if the tenancy does not go ahead, there are circumstances wherein the holding deposit can be retained by the landlord; for more information, see the Tenancy Fee Act 2019.