For Tenants

What is a tenancy deposit?

A tenancy deposit, also known as a security deposit or rental deposit, is a sum of money paid by a tenant to a landlord or letting agent at the beginning of a tenancy agreement. It serves as a form of financial protection for the landlord in case the tenant causes any damage to the property or fails to fulfil their obligations under the tenancy agreement.

What is the benefit of using the Rent Deposit Assistance Scheme for tenants?

The main benefit is that tenants can secure a rental property without having to pay a large upfront cash deposit. This can make it easier for individuals and families who may be financially stretched to secure suitable accommodation.

Can tenants use the Rent Deposit Assistance Scheme for any rental property?

Not all landlords participate in the Rent Deposit Assistance Scheme. It is essential for tenants to inquire with potential landlords or letting agents if they accept the scheme before applying.

What if my deposit is greater than a month's LHA rate?

To allow us to help as many people as possible to access the private rented sector we can only provide deposits to a certain value (e.g. one month's LHA rate). You will need to negotiate with your prospective landlord or raise additional funds to cover any gap between the money that we can offer you and the deposit value. To ensure that you can afford your rental payment as well as repayments for your deposit we will complete a financial assessment before we approve your application. It is important that you detail in your application if you will still have to raise funds to cover this gap. We will then be able to take this into account.

How do I know my deposit has been lodged into a scheme?

You can check if your deposit has been paid into the scheme by using the tools on the deposit’s website. You may need your landlord's reference number and your postcode to access this information.

What if I don’t pay my account within 12 months?

We can discuss with you if you require further time to repay our account however the maximum time we will allow you to repay your account is 12 months. If no payments are received after this period then we will instruct our debt collection company to reclaim the amount that is still owed to the council as per our Corporate Debt Policy.

Is the Rent Deposit Assistance Scheme mandatory for landlords?

No, participating in the Rent Deposit Assistance Scheme is voluntary for landlords. Some landlords may prefer to continue with the traditional cash deposit system.

What if my circumstances change?

As soon as your circumstances change please let us know. For instance, if you have changed jobs and your income is lower. We will review your financial assessment and look at ways that we can assist you in repaying your deposit to the council. This may be by extending your period to repay your deposit to the Council to lower and spread the cost or accessing other hardship funds.

What if I move out of the property I have received the deposit for before 12 months?

You will still need to pay the agreed monthly payment. However, as your tenancy has ended you may receive the full deposit back from the deposit scheme that your landlord has lodged the deposit with. You can choose to use this to pay off the account in full with Falkirk Council or continue to pay your monthly payment and use the deposit for your next property. Regardless you will still need to repay your debt to the Council and if you default in this we will look to retrieve the debt after a period of time through Sheriff Officers.

Please let us know your new address so we can forward any further communication to you.

What happens if there are damages or unpaid rent at the end of the tenancy?

If there are damages or unpaid rent, the landlord can make a claim against the guarantee certificate issued by the scheme provider. The provider will then assess the claim and payout accordingly, subject to the terms and conditions of the scheme.

For Landlords

Why is there a Deposit Assistance Scheme?

To allow applicants the opportunity to maximise their housing options. By providing deposit assistance we give individuals the opportunity to access the private rented sector which otherwise may not have been possible.

How will I know that the applicant is a good tenant?

The Landlord will be responsible for ensuring that they gather their own references and credit checks as they normally would for any tenant. As a council, we will ensure that we complete a financial assessment with the tenant to ensure that they can afford the rent as well as pay back the deposit to the council.

Where is the deposit lodged?

The deposit will be paid directly to the landlord. It is the landlord's responsibility to lodge the deposit in one of the deposit schemes recognised by the Scottish Government.

When must deposits be protected and information provided to tenants?

Any deposit received on or after 2 October 2012 must be deposited within 30 working days from the beginning of the tenancy.