New research has revealed that up to one-third of landlords could be overlooking their legal obligation to protect their tenant’s deposit. This could affect around 1.5 million tenants across the UK.
Research by the price comparison website, ComparetheMarket.com, suggests that one third (33%) of renters know that their landlord has not placed their money in to a deposit protection scheme.
Landlords are responsible for ensuring their tenant’s deposit is registered correctly, and that the Prescribed Information (PI) has been sent to the tenant along with the deposit scheme’s terms and conditions.
If a landlord fails to follow this process within 30 days of receipt, the tenant will be entitled to receive a statutory penalty from the landlord, which is mandatory.
Landlords who fail to protect the deposit or give the prescribed information within 30 days of receipt will be liable to pay the tenant between 1 and 3 times the deposit as a financial penalty and the court can order they return the deposit and the tenant can claim the financial penalty for up to 6 years after the deposit was not protected. Furthermore, the landlord cannot serve a Section 21 notice until the deposit is returned.
For a small fee of just £15 we can take care of your tenant’s deposit on your behalf, provided the 30 day time frame hasn’t expired.