Deposits
A deposit is money held as a security againsy any of the tenants obligations. It can be used to pay unpaid bills such as rent and to cover any damage by the tenant to the property, fixtures and fittings.
The maximum deposit that can be requested is the equivalent of two months' rent. When you receive the deposit you should provide your tenants with a receipt. Normal practice is to take a deposit after the tenancy agreement has been signed. You have to make clear to your tenant inwriting or as part of the tenancy agreement, what the deposit covers and the terms and conditions that must be met for the reimbursement of the deposit at the end of the tenancy.
The inventory is the main tool for assessing if you are entitled to retain any of the deposit for damages. If deductions have to be made from the deposit at the end of the tenancy then you must supply the tenant with any receipts and a writted statement identifying the reason for the deduction. Wear and tear is not a basis for withholding part of the deposit. When you return the deposit to the tenant at the end of the term you will be responsible for paying any interest gained unless your tenancy agreement says otherwise.
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