Tag Archives: The Dps

25Jan 2013

Prescribed Information Still Important When It Comes To Deposits!

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By Craig Smith

In another recent case a Landlord has been found to have not complied with legislation when protecting their tenant’s deposit. It can be a bit of a minefield if you are new to the industry but the rules are becoming clearer and clearer.

Not Just Deposit Protection

Where a deposit is covered by the legislation it isn’t enough to just protect the deposit. The Prescribed Information (PI) must be provided to the tenant at the start of the tenancy, usually within 30 days of the deposit being paid. The PI contains the information the tenant needs to know about where the deposit is going to be held and who has access to it. This recent case also proves that the tenants must be provided with the terms and conditions of the relevant deposit scheme.

What Information to Give?

You may have read my post about the DPS before so you’ll know that it is that scheme that our office uses. We must always give our tenants a set of the DPS terms & conditions which is a lengthy document but is worth its weight in gold should a case arise. The legislation states that it is the responsibility of the Landlord to ensure the information is given to the tenant and it is not up to the tenant to go looking for it. The terms and conditions are an important part of the PI as the case has proven. In this instance, the Landlord had registered the deposit in line with the legislation but hadn’t given the correct PI to the tenants.

There are also a lot more handy documents available through the DPS giving both tenants and Landlords advice on how to use the scheme. Don’t forget that each scheme differs slightly in the way their information is presented and they may not have an official set of terms and conditions, so to speak. 5 minutes checking you have the right stuff is better than 5 years recouping unnecessary costs!

Final Advice

Some of the information that needs to be provided may seem trivial but it is very easy to get hold of. Certainly with the DPS, the documents are free to download and can be found with a few clicks on their website.

The majority of tenants seem to ask what they need to do at the end of the tenancy anyway as the documents seem to get overlooked. You only need to read the details of the case mentioned here to see how really important they are!

10Dec 2011

Tenancy Advice: Prescribed Information & Tenancy Deposit Ruling

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By Craig Smith

If you’ve looked back through some of our recent posts, you might think that all we do is bang on about is deposits, deposits and deposits. Well, maybe not but here’s some more important information that you might find useful.

A recent court ruling has changed the way in which information should be provided to tenants paying a deposit that would be protected under the Housing Act 2004. Since 6th April 2007 any deposit taken for an Assured Shorthold Tenancy must be protected by one of the 3 deposit schemes (see my earlier post on deposit protection) but now additional information needs to be provided to tenants.

Prescribed Information

It is already stated in the legislation that tenants must be provided with certain Prescribed Information for the deposit. This information includes where the deposit will be held and the Landlords & Tenants rights to the deposit at the end of the tenancy. If this information has not been given correctly, or not provided at all, Landlords could be forced to pay 3x the deposit amount, plus the deposit back to the tenants.

This is the same for deposits that have not been registered in the timeline set out by the scheme rules, currently 14 days. Landlords cannot ‘get around’ the legislation by suddenly registering a deposit later in the tenancy if the tenancy turns sour. However, new rules are looking set to be published some time in 2012 which will extend the time to register a deposit to 30 days but we’ll wait and see when this happens!

Recent Court Case

The recent case which looks set to have changed the way in which information is given to tenants is the case of Suurpere V Nice. The full details of the case can be found using that link but the very basics of the case are: a deposit that was taken in January 2009 was not registered until July 2009. So, quite clearly not within the 14 day rule! Despite the fact that the tenant had left the property in rent arrears and goods still at the property that would need to be removed at the Landlrod expense, the Landlord was ordered to pay the deposit back to the tenant in full plus 3x the deposit amount.

Now reading this right now, this might seem unfair on the Landlord and to a certain point, I have to agree. But, the rules of deposit protection are very clear and Landlords cannot use the excuse of having a bad tenant to get out of any fines imposed by a court.

Rogue Landlords

A little bit of advice now to tenants. When you are looking to rent a property how much attention do you pay to the Landlord or Agent? Sometimes stickers on an office window might just get in the way of the property your trying to look at through the glass but do you know what they mean? It’s a tough world out there at the moment so make sure that the deposit you have paid is looked after! 

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.