11 June, 2021
If you rent your property on an assured shorthold tenancy, that started after 6 April 2007, the Tenants deposit must be registered with a deposit scheme provider, the funds paid into the scheme within 30 days of receipt and the Prescribed Information provided to the Tenant
It provides assistance to tenants to help get their deposit back, providing the tenant has met the terms of the tenancy agreement, hasn't damaged the property and has paid rent and bills as required.
You must return the deposit on termination of the Tenancy Agreement within 10 days of any agreement made as to how much deposit will be given.
One of the key benefits of the deposit protection schemes is they facilitate settlement in the event of a dispute as to the amount of any deductions.
If a deposit has been taken, it will still need to be protected.
If you haven't protected the deposit, the tenant may make a claim for compensation. If successful, they could be entitled to a full refund of their deposit, plus up to 3 times the deposit value as compensation. For example, if the deposit was £500, the tenant could be entitled to £2,000.
More importantly, for some, if you wish to obtain possession of the property and have not protected the deposit, you are unable to serve a s21 notice for possession, until the deposit is returned or protected. This could cause a delay in obtaining possession
For more information contact Samantha Abdoollah in our Business Dispute Resolution department via email or phone on 01254 222456. Alternatively send any question through to Forbes Solicitors via our online Contact Form.
Learn more about our Business Dispute Resolution department here