With the Deregulation Act deadline looming, we want to make sure that you know exactly how you’re affected and what you need to do if you are. Below, we’ve tried to answer a number of the most commonly asked questions that we’ve received from our members.
Am I affected by the Act?
If you took your tenant’s deposit after 6 April 2007, then the Deregulation Act doesn’t apply to you. The Act only applies to live deposits taken before 6 April 2007.
If you took your tenant’s deposit before 6 April 2007 and you continue to hold that deposit against a current Statutory Periodic Tenancy that began after 6 April, then you are affected and must protect before the 23rd June if you haven’t already done so.
If you took a deposit before 6 April 2007 which fell into a Statutory Periodic Tenancy before 6 April 2007 then you are affected. The deposit needs to be protected before you can serve a Section 21 Notice but there are no financial penalties for not protecting.
What do I need to do if I’m affected?
If your deposits fall under the Deregulation Act then you must protect these deposits before 23 June 2015 or you need to serve a Section 21 Notice.
To protect them, you must first register with a deposit protection scheme if you haven’t done so already. Landlords can get 50% off our joining fee if you join before 31 July 2015 using discount code: SUM15. You can join mydeposits via our website.
Once you are a member, you then need to log into your member area, protect the deposit(s) and provide the prescribed information to your tenant(s) before the deadline.
What could happen if I don’t protect any affected deposits?
Landlords and agents who fail to protect any affected deposits could face penalties including fines of up to three times the deposit amount and/or lose the ability to serve a Section 21 Notice to regain possession of your property.