You should all be aware of the requirement to protect any tenancy deposit in a recognised tenancy deposit scheme.
However, there are two steps to the process - the first is to protect the deposit, the second is to give the tenant the prescribed information. I am finding that many landlords are protecting the deposit but are not aware that there is a document called Prescribed Information that must be given to the tenant.
The Prescribed Information is a document that gives the tenant the details of where the deposit is registered, the procedures for the scheme and how to get the deposit at the end of the tenancy. This must be given to the tenant within 30 days of receipt of the deposit. The certificate from the Deposit scheme showing that the deposit has been protected is not sufficient.
The Prescribed Information can be found on the schemes websites.
Failure to give the Prescribed Information carries the same penalties as not protecting the deposit - those being that your tenant can apply to court and get compensation up to three times the amount of the deposit and you can not serve a section 21 notice.
If you have not given your tenant the prescribed information and need legal advice, or you require any other landlord legal advice please email me at propertyhawk@filder.co.uk.
Rebecca
Fidler & Pepper
It's key that landlords are aware of how this system works and don't get caught out.
ReplyDeleteHi,
ReplyDeleteWondered if anyone could help?
I’m in the process of completing the Deposit Protection Service’s ‘Prescribed Information Relating To Tenancy Deposits ‘but I’m unsure what clause(s) to put in for the following section;
(f) Circumstances when all or any part of the deposit may be retained by the Landlord.
Refer to Clause(s) [ please insert relevant clause reference below ] of Tenancy Agreement.
I have used the “Property Manager” Assured Shorthold Tenancy Agreement template so should I use section 5.1 as below?
“5.1 The deposit specified above shall be paid by the Tenant on the signing of this Agreement and is to be held by the landlord for the duration of the tenancy as security against the Tenant's failure to pay the rent or no-performance of his obligations as laid down in this Agreement. This includes any breach by the Tenant of his obligation as to the cleaning of the premise, the cleaning of any fixtures and fittings therein and the return of all keys.”
Many thanks,
JB