Tenancy deposit protection has been thrown into the spotlight recently after the Appeal Court ruling in the Superstrike v Rodrigues case held that a statutory periodic tenancy is in fact a new tenancy and therefore a deposit has to be protected anew. The Appeal Court decision also means tenancies that began prior to 2007 are no longer exempt, which many landlords were in the dark about. So what are the main points landlords need to be careful of?
Guidelines on Deposit Protection
• When a fixed term tenancy ends, always check with the deposit protection scheme you used to ensure the deposit is still protected, and if it isn’t, go through the process anew.
• When a tenancy is renewed or it changes into a statutory periodic tenancy agreement, once again, check whether the deposit is still protected. If the deposit is no longer protected, take steps to re-serve the section 213 notice.
What Happens If You Never Protected the Deposit and the Tenancy has since been Renewed?
Tenancy deposit protection legislation has become something of a legal minefield, so if in doubt about your position, it could be worth taking legal advice from a housing law specialist. Always protect yourself at all times in case a future dispute arises. The danger is that if you have not followed the correct procedures, you could end up in breech of the rules and be subjected to a fine. You will also be unable to use the possession procedure if you need to evict your tenants.
