Landlords could risk facing heavy fines if they fail to protect their tenants’ deposits before an important new deadline on 23rd June.
The deadline, which was imposed as part of the Deregulation Act, affects landlords who have existing tenancies that started before Tenancy Deposit Protection (TDP) was introduced in England and Wales in April 2007.
With an estimated 330,000* existing tenancies affected , landlords are being reminded that they could be face fines of up to three times the deposit amount if they fail to protect their tenants’ deposits and supply the Prescribed Information by the 23rd June deadline.
Research figures released by mydeposits, one of the three government approved tenancy deposit protection schemes, suggest that 48% of landlords struggle to keep up with changes in legislation which could exacerbate the issue.
CEO of mydeposits Eddie Hooker commented:
“It’s important that landlords and letting agents are aware of the legislation changes and how it affects them. They must act now and check whether they need to protect any deposits and avoid a fine.”
Landlords and agents who still hold a deposit on a tenancy that began before 6 April 2007 and then rolled into a Statutory Periodic Tenancy (SPT) on or after 6 April 2007 must protect the deposit and serve the prescribed information by 23rd June to prevent being fined.
For deposits taken before 6 April 2007 and where the tenancy became periodic prior to this date, landlords and agents aren’t required to protect the deposit however, they won’t be able to serve a section 21 notice to regain possession of the property unless the deposit is protected with a tenancy deposit scheme.
Mydeposits is offering a 50% discount on their joining fee for all landlords who sign up to the scheme before the 23rd June deadline by using discount code SUM15.
Eddie Hooker continued:
“Our advice is simple: if you still have a deposit that was taken before 6 April 2007 then the belt and braces approach is to protect it and provide your tenant with all the relevant information as soon as possible. That way you can avoid a hefty penalty and regain possession if needed.
“Protecting a deposit with mydeposits is simple and can be done online 24 hours a day, 7 days a week. We also have a dedicated team of advisors that are here to help landlords and agents ensure that they act in time to protect older deposits”.
A detailed breakdown of the Deregulation Act and how it affects landlords and agents is available on the mydeposits website.
For any landlords who wish to take advantage of the 50% discount off the mydeposits joining fee, visit the website and apply online quoting SUM15