The best sources of tenancy deposit protection often depend on the jurisdiction in which a tenant is renting. Often, a written rental lease and a jurisdiction’s laws are the best sources of deposit protection. In some places, however, landlords may also put deposits into accounts offered by organizations that specialize in keeping tenant deposits safe. Alternatively, some jurisdictions require landlords to place deposits in bank or credit union accounts for safekeeping.
Often, a written and signed lease is a tenant’s best source of tenancy deposit protection. Typically, a lease details the rights and responsibilities of both a tenant and his landlord. A lease should include details about the amount of the tenancy deposit required, where it will be held, and how it may be used. It should also provide details about the steps a tenant has to take to get it back at the end of the lease as well as the circumstances under which it must be returned. Having this information in writing can be critical in preventing disputes and resolving them when they do occur.
The legal system in a tenant’s jurisdiction typically serves as an important source of tenancy deposit protection. Most jurisdictions have laws that stipulate how much of a deposit a landlord can collect, how the money is held, and when it must be returned to the tenant. In the event a landlord does not return a deposit when required, the laws in many jurisdictions allow the tenant to sue the landlord. In some cases, a tenant may collect double or even triple the amount of his security deposit after winning such a lawsuit.
In some places, tenancy deposit protection services help to keep a tenant’s deposit safe. With such a service, a landlord may deposit the tenant’s money and allow the service to manage it for the duration of the tenancy. In other cases, the landlord may not deposit the money with the service, but may instead pay insurance premiums to the tenancy deposit service. In the event that a dispute arises over the deposit, an insurance claim could cover the amount due to the tenant.
Some jurisdictions provide tenancy deposit protection by requiring landlords to place security deposits in a bank or credit union account. This helps ensure that the tenant deposit is kept safe and the landlord isn’t using it for his own purposes. In such a case, the landlord is typically required to tell the tenant where he has deposited the money.
