CHANGES TO TENANCY DEPOSIT RULES - DEADLINE FOR COMPLIANCE APPROACHING

Mon 22 Jun 2015

If you are letting out your property, note that the law in relation to tenancy deposit schemes has recently changed and you have until June 23rd to comply with the new changes.

 

It has been the case for some time that landlords have had to ensure any deposit taken from their tenant for an assured shorthold tenancy that started after 6th April 2007 is put into a government-backed tenancy deposit scheme.

 

The new changes now require that deposits taken prior to 6th April 2007 are also protected in this way.

 

Previously there was no requirement for landlords to offer this protection. This resulted in a number of court cases relating to issues caused by unprotected deposits, which has led to the passing of the Deregulation Bill 2015. Deposits taken prior to the April 2007 deadline, and where the tenancy continues, must now be protected and the Prescribed Information (PI) served to the tenant.

 

Government-backed schemes include MyDeposits, the Deposition Protection Scheme and the Tenancy Deposit Scheme (of which Seymours is a member).

 

This law must even be complied with in cases where a third party, such as a family member, provided the deposit. This is to ensure this money is protected throughout the length of the tenancy.

 

Failure to comply with the June headline will result in a severe financial penalty.

 

Nick Lees, from Seymours in Godalming’s lettings office, comments: “The changes in the law are there to protect tenants who are typically offering up large deposits to secure their tenancy on the basis that it will be returned at the end of the agreement, assuming the agreed criteria is met.

 

“The good news is that as a lettings agent, Seymours is able to serve the PI on behalf of our landlords. We are licensed members of the Association of Residential Letting Agents (ARLA) and work to the highest standards across every aspect of residential letting and management. We remain up to date with all relevant areas of housing law and our clients can rest assured that their property is in good hands.”

 

If you are looking for more information on letting out your property or are looking for full service property management click here to find out where your nearest Seymours lettings office is.