Landlords 'should make sure deposits are protected'
Using the property management services of a residential lettings agency may be a convenient way for landlords to ensure that tenants' deposits are properly looked after.
According to John Gallagher, principal solicitor at homelessness and housing charity Shelter, a significant number of cases dealt with by the organisation arise from instances where a deposit has not been properly protected.
Speaking to the BBC Money Box Podcast, he commented: "What should happen is that the landlord should protect the deposit within at present 14 days of receiving it.
"There's what's called a custodial scheme which is a scheme that actually keeps the deposit and there are two insurance schemes whereby the landlord pays a premium and the scheme ensures the safe custody of the deposit."
However, landlords may find it is more convenient to use the services provided by residential lettings agents to handle issues such as deposits and other legal and administrative matters.
This could help prevent disputes between landlords and tenants over the return and protection of deposits.
"I'm afraid the kind of disputes we normally see are where the landlord hasn't protected [the deposit] at all, or possibly has protected with one of the insurance schemes but hasn't paid the premium when the tenancy comes to be renewed," Mr Gallagher told the news provider.
"Of course this is only discovered when it comes to the end of the tenancy, and that's where the problem comes into place. Once the tenancy has ended there is no penalty for the landlord not protecting the deposit."
Meanwhile, the results of a survey released this week by Assetz found that over two-thirds (76.8 per cent) of buy-to-let homeowners plan to expand their UK property investment portfolios over the coming year, with rising rental yields and the expectation of capital gains driving purchases.
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