Tenants' Deposits
Oct 11, 2006
Author: Richard Harriman

If so, you may be affected by new rules if a deposit for the property is taken from 1st October 2006. New rules - the Tenancy Deposit Scheme have now come into force. They do not affect tenancies already granted however. There are two forms of scheme, the first being a single custodial scheme where money is paid into a separate account. The second is insurance-based Schemes where the landlord retains the deposit, but any failure to repay the deposit to the tenant would be covered by the scheme’s insurance arrangements. Disputes go to alternative dispute resolution, not the courts.

Richard Harriman says
“Landlords have to give their tenants, within 14 days of taking a deposit, information relating to the scheme and the landlord’s obligations under the scheme. When the tenancy is over, deposits are returned within 10 days of an agreement between landlord and tenant (or of a court decision if there is a dispute and alternative dispute resolution has failed to settle it).
Landlords are not allowed to serve notice on tenants to leave unless they comply with the scheme. Tenants can apply to the court for an order that the deposit is safeguarded. Landlords who breach the rules can be ordered to pay the deposit back and a sum which is three times the deposit within 14 days of a court order being made.
If you need any advice on this contact us on Richard Harriman on 01494 521301