18 Jun

Landlords urged to check deposits

Landlords urged to check deposits

Landlords are being reminded to ensure they are following the legislation on tenancy deposits correctly.

Tenancy Deposit Protection schemes have been in place since April 2007, but a court ruling has confirmed that any tenancy which began before that date but has been renewed or became a statutory periodic should be classed as a new tenancy and therefore the deposit has to be protected in an appropriate scheme.

This led to some confusion for landlords and tenants, but the Deregulation Act 2015 introduced in March requires all landlords to comply by June 23rd.

With the deadline quickly approaching, the Association of Residential Agents (ARLA) is urging all landlords to double check they are using a government scheme to protect deposits, otherwise they could face substantial costs.

"The new Act provides clarity on the tenancy deposit protection regulations in practice, especially with regard to whether the pre 06 April 2007 deposits fall under the protection rules. The onus is on landlords to adhere to the new rules and ensure they’re compliant," said Fran Mulhall, regional operations manager at property rental specialists GFW Letting.

Recent research by mydeposits concluded that 48 per cent of landlords struggle to keep up with changes in legislation surrounding tenants' deposits.

"It’s important that landlords and letting agents are aware of the legislation changes and how it affects them. They must act now and check whether they need to protect any deposits and avoid a fine," said chief executive officer of mydeposits Eddie Hooker.

"Our advice is simple; if you still have a deposit that was taken before 7 April 2007 then the belt and braces approach is to protect it and provide your tenant with all the relevant information as soon as possible. That way you can avoid a hefty penalty and regain possession if needed."ADNFCR-1222-ID-801791553-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.