Deposit Information in Clifton

The update made to the tenancy deposit legislation on 6th April 2012 .You only have 30 days to protect the deposit now. In the past it has been possible to comply after the time period but this has been stopped - If you don't sort it out in the first 30 days you risk hefty fines. If the landlord fails to protect the deposit than the service of any section 21 notice may be deemed invalid and the court may dismiss a claim made under section 21. Once the deposit is protected the landlord must provide the tenant with the relevant information that the deposit has been protected.

There are at present 2 types of tenancy deposit protection schemes available for landlords: insurance-based schemes and custodial schemes. All schemes should offer a free dispute resolution service.

Insurance-based Schemes

The tenant pays the deposit to the landlord.

The landlord retains the deposit and pays a premium to the insurer - the key difference to the custodial scheme.

Within 30 days of receiving a deposit the landlord or agent must give the tenant the details about how their deposit is protected including:

  • The contact details of the tenancy deposit scheme selected.
  • The landlord or agents contact details.
  • How to apply for the release of the deposit.
  • Information explaining the purpose of the deposit.

What to do if there is a dispute about the deposit at the end of the tenancy:

  • If an agreement is reached about how the deposit should be divided, the landlord or agent returns all or some of the deposit.
  • If there is a dispute, the landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved.
  • If for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it.

Custodial Schemes

The tenant pays the deposit to the landlord or agent.
The landlord or agent then pays the deposit into the scheme.

At the end of the tenancy:

  • If an agreement is reached about how the deposit should be divided, the scheme will return the deposit, divided in the way agreed by both parties.
  • If there is a dispute, the scheme will hold the deposit until the dispute resolution service or courts decide what is fair.
  • The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will be used to offer interest to the tenant or landlord if the tenant isn't entitled to it.

For more information please call us today on 01179731550

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