Landlords Legal Implications of the Tenancy Deposit Scheme

The Tenancy Deposit Scheme came into force on the 6th April 2007 and applies to all new all Assured Shorthold Tenancies (AST) created after this date in England and Wales.
As a Landlord it is important that you are aware of the legal responsibilities and implications of the Scheme;

1. You will be breaking the law if your tenant/'s deposit/s are not protected.
2. You will be unable to regain possession of your property using notice-only grounds for possession under Section 21 of the Housing Act 1988.
3. Your tenant can apply for a court order requiring their deposit to be protected if it isn't, or is entitled to request information to find out where it is being held.

If the court decides that you have failed to comply with the new rule or is not satisfied that the deposit is being held with an authorised scheme, the court can enforce the following:

1. Order you to repay the deposit within 14 days of the issuing of the court order.
2. Order you to pay the deposit into an authorised scheme.
3. Order you pay the tenant three times the deposit amount within 14 days of the making of the order the tenant.

For more information on Landlords responsibilities click here