The Government has been discussing new amendments to Tenancy Deposit Protection arrangements for a while now, with a view to introducing the changes as of April this year. These amendments are designed to protect tenant’s deposits and landlords need to make sure they are fully aware of the changes so that they do not fall foul of the law.
What are the key amendments to the Tenancy Deposit Scheme landlords should be aware of?
1. The new changes come into effect from 6 April 2012.
2. Landlords have thirty days from receipt of the deposit to place it in an approved deposit protection scheme.
3. Landlords must give their tenants essential information about the Tenancy Deposit protection scheme within the same 30-day period.
What happens if landlords fail to comply with the requirements of the Tenancy Deposit Protection scheme?
If you fail to comply, your tenant can take you to court and you face being fined. The amount of the fine you may be liable for is down to the discretion of the courts, but it can be anything up to three times the amount of the original deposit, and this penalty will be payable even if you are just a bit late dealing with your tenant’s deposit. You will also lose the right to serve a Section 21 Notice until you return the tenant’s deposit or the claim has been settled one way or another.
For those of you who would like further information on this important subject, check out the website for the Department for Communities and Local Government (DCLG).
