Landlords have until 23rd June 2015 to act to ensure that they do not fall foul of the new law and risk a hefty fine which could be in the region of 3 times the amount of the original deposit according to a report on dailymail.co.uk
Since 2007 landlords have been required to protect their tenant’s rental deposits through one of three money schemes; Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme, with alternative schemes in Scotland and Northern Ireland. Prior to this any monies received in the form of a deposit was not required to be registered and protected. However following the Deregulation Act which became law last month, all pre April 2007 deposits where the tenancies have continued must now be registered.
Managing Director of the Deposit Protection Service, Julian Foster said: “The DPS welcomes these changes, which provides much needed clarity over the protection of older deposits.”
“It brings an end to confusion over the management of deposits taken before the legislation came into force that have been retained by landlords past their original tenancy period.”
Fines are not the only problem that landlords could face; if they don’t register they may be deemed to have failed in their obligations regarding deposit protection and could find it difficult to evict the tenant should they need to.
There are, however, a number of landlords that do not come under this new legislation including landlords who have tenants paying £100,000+ per annum, live-in landlords, company lets, and student lets that are provided by universities or colleges.
You should protect your tenant’s rental deposits in line with current legislative requirements and you should also consider protecting your property with specialist landlord insurance. Click4quote.com provides landlord insurance with optional cover including legal expenses, rent recovery and rent guarantee. Find out more about what we can offer you and get a quote online today.
There is some useful information regarding deposits as well as tenancy referencing and agreements on our Tips and Guides for Landlords section.