Property Management
Frequently asked questions:
(please note “Landlord” also covers Letting Agent)
General
Why does the Government want to protect tenants’ deposits?
When a tenant pays a deposit to rent a property, the deposit is held in a government scheme rather than the landlord or agents bank account. At the end of the tenancy should the tenant be entitled to all or part of the deposit back, they can be assured this will be received.
Aren’t these new provisions unfair to good landlords?
No, most landlords already act responsibly by safeguarding deposits, however tenancy deposit protection schemes put into place a simple process ensuring all landlords safeguard the deposits they take, this is in the interests of both landlords and tenants.
What sort of tenancies will deposit protection apply to?
All deposits taken by landlords for assured shorthold tenancies (ASTs) in England and Wales apply. The new rules do not apply in Scotland and Northern Ireland.
How will this affect deposits paid for tenancies starting before 6th April 2007?
The legislation only applies to new deposits paid for ASTs entered into on or after 6th April 2007. Any deposit paid for before this date will not need to be safeguarded by a tenancy deposit scheme.
What happens if a tenant renews their contract after 6th April 2007?
If the tenant decides to remain in their existing rented property beyond the initial term of 6 months the deposit will be affected by how the tenancy is continued:
- Periodic Tenancy; if the tenancy continues with no new agreement being created, the deposit will not have to be safeguarded by a tenancy deposit protection scheme.
- Replacement tenancy; if a new AST is created between the Landlord and tenant for the same property on substantially the same basis the initial deposit paid prior to April 2007 will need tenancy deposit protection.
Does tenancy deposit protection apply to landlords who live overseas?
Yes, if a landlord lives overseas but lets a property in England or Wales on an AST and takes a deposit.
