Information for tenants – Custodial
Understanding tenant's rights:
A free comprehensive guide to deposit protection
Are you a tenant? It’s crucial to know your rights when it comes to your rental deposit. In this informative guide, we’ll walk you through the ins and outs of deposit protection and what actions you can take if your landlord fails to comply with the regulations.
Penalties for non-compliant landlords
As a tenant, you have legal recourse if your landlord doesn't adhere to deposit protection legislation. Landlords who fail to comply may face the following penalties:
- Prompt deposit handling: Landlords are required to either return your deposit or place it in a custodial scheme within 14 days
- Monetary fines: Landlords could be fined anywhere from one to three times the amount of the deposit
- Loss of possession notice: Landlords may be prevented from serving a Section 21 Notice, which is typically used to regain property possession
Introduction to mydeposits Custodial
Enter mydeposits Custodial, a reliable and government-authorized scheme designed to protect your tenancy deposit.
This scheme allows landlords to join and safeguard your deposit. When the tenancy ends, both parties can communicate with the scheme to arrange for the deposit’s release. Plus, if disputes arise, mydeposits offers a free and impartial alternative dispute resolution (ADR) service to help settle disagreements fairly.
Safeguarding your deposit with mydeposits
Since April 6th, 2007, all landlords who collect a deposit from their tenants in England and Wales under an Assured Shorthold Tenancy (AST) agreement must adhere to deposit protection legislation. This involves:
- Deposit protection: Landlords must protect the deposit using a government-authorized scheme within 30 days of receiving it
- Prescribed information: Landlords must provide tenants with proof of deposit protection (known as Prescribed Information) within the same 30-day period
This legislation aims to ensure the protection of your deposit and guarantees that you’ll receive it back when entitled.
Understanding the prescribed information
Your landlord is legally obligated to furnish you with essential information about your deposit, including its protection under an authorised scheme and guidance for resolving deposit-related disputes. This information, known as the Prescribed Information, should be provided to you in a signed document.
This guide, “Information for tenants,” also forms part of the Prescribed Information and further explains the workings of the mydeposits scheme.
Reclaiming your deposit at tenancy end
As your tenancy draws to a close, make sure to request the return of your deposit from your landlord.
Both parties should discuss and agree on any deductions before the landlord applies to mydeposits for the release of the deposit funds. The release process must commence within ten days of your initial request.
Dealing with deposit deductions and disagreements
If you and your landlord disagree over deposit deductions, try discussing and resolving the matter amicably.
In cases where agreement isn’t possible, you can initiate a dispute with the scheme. Responding within 14 days is essential; failure to do so might lead to your landlord seeking a deposit release through the “single release process.”
Navigating disputes and alternative dispute resolution
Should disputes arise over deductions during the deposit release process, you can engage in Alternative Dispute Resolution (ADR) through mydeposits.
This process offers a non-court-based resolution, where evidence provided by both parties is evaluated by an impartial adjudicator. The decision is binding, and the scheme distributes the funds accordingly.
Staying connected with mydeposits
Make sure mydeposits has your updated contact details as your tenancy concludes. You can conveniently manage your account online and even initiate a deposit release process if needed.
Your deposit is your right, and understanding how it’s protected is crucial. If you encounter issues, mydeposits Custodial is here to make sure of fairness and compliance. To check if your deposit is protected, visit the tenant section of our website.