Tag Archives: Housing Act

22Dec 2012

Letting News: Tenant Information Packs Becoming Compulsory in Scotland

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By Craig Smith

As our office is based in the Midlands (England) it isn’t very often that we have the need to report on a change in Scottish legislation. The 2 countries may be very similar but they don’t share all of the same laws and regulations when it comes to lettings.

New TIP Packs

Under the Private Rented Housing (Scotland) Act 2011 any Landlord inScotlandwill soon have to provide each new tenant with a Tenant Information Pack (TIP). This may be new toScotlandbut may I just point out that Castle Estates have been producing these packs for almost 10 years! It has changed over the years to cover the ever changing legislation and changed layout once or twice but has remained generally the same.

Why So Long?

The Scottish equivalent could be up to 30 pages long with various information about the property and its necessary legal requirements but our fits neatly enough into 5 pages and covers, we feel, all of the general information a tenant might need. It is our general practice to go through this with every tenant at the check in to ensure that they understand their rights & responsibilities before they sign any tenancy agreement.

Don’t get me wrong, I’m all for making sure that everyone knows exactly what is expected of them but being perfectly honest, I don’t know how many people actually take the time to read it during their tenancy or remember most of what it means. Which only begs the question, what is the point in having a compulsory version that is 6 times as long?!

Waste of Effort?

If the government stopped and thought realistically for a moment, they might share the same viewpoint. Maybe this will just be yet another stack of paper wasted and extra money down the drain for no reason?

The same has happened in relation to deposit protection (uh oh, here we go again with deposits!). We now need to ensure that the terms & conditions for the relevant deposit scheme are provided to each tenant at the start of their tenancy. This is just over 10 pages of information which seems to end up in the bottom of a drawer or at the back of a cabinet.

Good Idea or Bad?

In general, I do think it is a good idea to have certain information for tenants although some of it may just be overkill and could be found with 2 minutes searching on the internet. I guess we’ll have to see if this becomes law in England and Wales too and how well it goes in Scotland!

24Feb 2011

Deposit Protection Issues: Best Practice

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By Craig Smith

Since 6th April 2007, any deposit taken for a property that is being let with an Assured Shorthold Tenancy Agreement in England or Wales must be registered with one of the three approved deposit schemes. This can sound like another hoop for Landlords to jump through but the results of not properly registering a deposit can be costly.

Does it make any difference?

In a word… yes! It is not just a case that the money has to be protected but by registering the deposit with an approved scheme, the money can be held in a secure account and is protected for both parties. Each scheme also have their own dispute resolution service which can be used as an alternative to court action if the Landlord and Tenant disagree about any costs at the end of a tenancy. The adjudication service will take into account any evidence from Landlords and Tenants, which is where a good inventory and check out report come in to play!

Tenant Find properties, who deals with the deposit?

Tenancies where an agent only finds a tenant for the property but does not manage it can sometimes be a grey area depending on who registers the deposit. Castle Estates can still register a deposit on the Landlords behalf although would not be able to get involved in any claims at the end of the tenancy. Please feel free to contact us for further information.

So what if it isn’t registered?

If a Landlord fails to properly register a deposit they can be forced to pay back the full deposit, plus 3 times the amount of the deposit to the tenant. And on top of this, a Landlord would not be able to issue a Section 21 notice requiring possession of the property. Not only would it costs 3 times the amount of the deposit, it would also take a lot longer to gain possession of the property.

When should the deposit be registered?

Any monies taken as a deposit should be registered within 14 days of the Landlord receiving it. This is regardless of whether the tenancy has already started or is to start at a later date, although if the monies are paid but the tenant backs out of the deal, don’t forget that the money should be paid back to the tenant!

Where do we go from here?

Always make sure that your deposit is protected, if it falls under the legislation. A good agent will always look after your investment as if it were there own. If in doubt, please do contact us for further advice.