New rules from Monday 2nd July mean that property landlords and agents in Scotland must lodge tenants’ deposits for protection. The scheme applies both to new deposits and existing ones and landlords need to check the dates that apply to their individual cases. There is plenty of advice available on line where you will find government approved deposit protection providers who can help landlords comply with the new law.
Landlord insurance clients in England and Wales will already be aware of the importance of having deposits protected and now those in Scotland need to follow suit. It is the responsibility of the landlord or agent to protect the deposit and there are rules governing what happens about returning it at the end of the tenancy. As soon as deposits are properly protected the tenants are no longer at risk of losing their money if the landlord or agent holding it goes into bankruptcy or liquidation.
The Scottish Government reckons that more than £2.2million of tenancy deposits are unfairly withheld by landlords each yea. To avoid disputes it is essential for the agent and landlord to adopt the best possible practices for the letting and management of the property. For example, having a clear and comprehensive tenancy agreement, and a thorough inventory and check in/out. It is essential to record the condition of the property and any contents both at the beginning and end of the agreement and photos can be very useful. The property must be inspected regularly and any breaches dealt with promptly before they become major issues.