During the last year or so, we have dealt with a number of cases
where claims have been delayed as a result of the landlord's
failure to comply strictly with statutory requirements relating to
Tenancy Deposit Schemes. Whilst you and your colleagues are no
doubt aware of the statutory requirements, experience has shown us
that very minor departures from the requirements can cause
problems.
A Notice Requiring Possession (served by a landlord prior to
proceedings) is invalid if any deposit is not held in an authorised
scheme, or if the landlord has not provided the tenant with certain
prescribed information within 30 days from receipt of the
deposit.
The Deregulation Act 2015 has relaxed requirements for landlords in
some respects, but they are still strict. If the prescribed
information is provided late, or if some of the prescribed
information is missing, then even where the deposit is protected in
an authorised scheme, the only safe course is to return the deposit
to the tenant in full. Even that can cause practical
difficulties.
Common questions we have recently given advice on include:
- What exactly is the 'prescribed information' and when do you have to provide it?
- What records should you keep when circulating prescribed information?
- What should you bear in mind if drafting a section 21 notice?
If a deposit was taken for a tenancy before 6 April 2007 but was not protected by the time it subsequently became a periodic tenancy, the landlord must protect the deposit and serve the prescribed information, by 24 June 2015.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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