Many private landlords remain unaware of the regulations introduced by the Housing Act 2004, relating to tenants' deposits. All deposits taken on or after 1 April 2007 are subject to the tenancy deposit regulations introduced by the Act.
Failure to comply with the regulations can cost a landlord dearly.
Under the regulations, landlords are required to do the following:
- Protect their tenant's deposit by using either a recognised Custodial Tenancy Deposit Scheme or Insurance Based Tenancy Deposit Scheme.
- Protect the deposit within 14 days of it being paid by the tenant.
- Inform the tenant in writing of the details of the scheme used within 14 days of the deposit being paid and protected.
Failure to comply with the regulations can give rise to a claim by the tenant against the landlord for the return of the deposit plus an award of 3 times the amount of the deposit. The case law which has arisen in these matters demonstrates that the Courts apply the regulations very strictly against landlords.
A further important issue to be aware of is that a Section 21 Notice Requiring Possession served on a tenant whose deposit has not been properly protected, is unenforceable.
If you require further information on the above issue or any other landlord and tenant related issue, please contact Anissa Hallworth on 01553 660033.
