If you are a Landlord who has instructed a Letting Agent to protect your Tenant deposits on your behalf, you should read this important information. Please read the four key points and the Information for Landlords using an Agent leaflet regarding deposit protection:
You have appointed an Agent to represent you. As agreed by you, the Agent has the authority to act on your behalf. It is a legal requirement to protect all Tenant deposits and your Agent has chosen to protect your Tenant’s deposit with mydeposits.
As the Landlord, you are always ultimately responsible for the return of the deposit to the Tenant (including after dispute resolution, if necessary). By law you are still liable for its return even if the Agent is at fault, acts fraudulently or ceases trading.
mydeposits Agent Members must hold all Tenant deposits in a designated client money account that is entirely separate from the other operating funds of the agency. You should verify that the money is held this way by your Agent. Unfortunately there have been occasions where deposit money has been lost or become untraceable when an Agent becomes insolvent, leaving the Landlord liable for its return to the Tenant. Please refer to the enclosed leaflet, “Information for Landlords using an Agent to Protect Tenant Deposits” for further information.
Under the Housing Act 2004, the Landlord must provide the Tenant with "Prescribed Information" or face serious consequences. This information is described on the mydeposits ‘Deposit Protection Certificate’ that is issued to your Agent once the deposit has been protected with mydeposits. The Scheme also provides an “Information for Tenants” leaflet and you should ensure that your Agent passes on both of these documents to the Tenant.
If the Tenant’s deposit is not protected, or the ‘Prescribed Information’ is not supplied in full, then you, as the Landlord, face the following penalties, regardless of whether you use a Letting Agent:
These points are of significant importance. For more information please speak with your Agent directly or read our Scheme Rules. You may also want to enquire if your Agent is a member of any regulatory organisation for Letting Agents and what the benefits are for you, the Landlord.
Search here to find a mydeposits letting agent member.