A new solution to help letting agents deal with the introduction of the security deposit cap under the Tenant Fees Act has been launched.
The Deposit Protection Service (DPS) is providing its agents with a calculator which can help them to work out how much money they need to return to certain tenants once security deposits are capped.
From June 1, all security deposits for new tenancies and renewals on tenancies with an annual rent of less than £50,000 will be capped at five weeks. High-end properties with a yearly rent of £50,000+ will have security deposits capped at six weeks.
The online calculator will allow agents and their landlords to determine which tenancies renewing after June 1 will exceed the five or six week caps.
They can then notify the DPS which will reduce the deposit amount on its system, send a payment for the excess to the tenant and make available a new downloadable certificate for both sides of the rental transaction.
"Our aim is to make meeting the terms of the new security deposit cap as quick and as easy as possible by offering a fully-managed service that allows letting agents and landlords to take care of any deposits that may be affected in one simple process," says Daren King, head of The DPS.
Recent research by Rightmove revealed that even once the deposit cap comes into force, deposits in some high-end areas such as Kensington will be in excess of £4,000.
The cheapest regional deposits will be found in the North East at a typical cost of £630 per property.
Last month the Tenancy Deposit Scheme released a range of tools, including a costs calculator, aimed at helping landlords and letting agents to comply with the Tenant Fees Act.