Landlord insurance clients might be surprised to learn that many tenants fail to ask for the return of their deposits at the end of the tenancy. In 2010 the Deposit protection Service returned £3m of unclaimed deposits but it is still holding £2m on behalf of tenants who have failed to contact them. It has even introduced a text messaging service to remind tenants.
The DPS protects 670,000 deposits in the UK. The service is free of charge, being funded by the interest on the deposits it holds. Experienced landlords will be well aware of the need to protect their tenants’ deposits in an accredited scheme but newcomers to the business should check up on the rules to avoid breaking the law. Gone are the days when landlords could hold on to the funds and drag their heels about repaying them.
There is some useful information about deposit protection on the DPS website www.depositprotection.com Our landlord insurance clients might find it well worth a look.