What is a deposit use clause?
A deposit use clause is found in your tenancy agreement and outlines how the deposit can be used. It is important to read this part of your tenancy agreement as it informs you when a deposit can be kept, for example, in the case of rent arrears or to make up for any property damage.
The clause will also explain the deposit refund process.
Why is a deposit use clause required in tenancy agreements?
A deposit use clause can be useful if there are any disputes in the future. This is because the adjudicator usually relies on the clause within the tenancy agreement to make decisions. Without a deposit use clause, the adjudicator will not be able to provide any compensation to the property owner even though the tenant may have breached the agreement.
The following will be required for an adjudicator to make a decision after a dispute:
What is included in a deposit use clause?
The following is included in a deposit use clause:
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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