Tenancy Deposit Scheme Landlords Are You Ready
With effect from the 6th April 2007, the last major provision of the Housing Act 2004 will be implimented. This will mean all Landlords renting properties in England and Wales will have to legally comply with the Tenancy Deposit Scheme.
What this entails is that landlord can no longer hold a tenants deposit in the way they have been used to i.e. in their own bank accounts.
As from the 6th April 2007 a Landlord will not be able to take a deposit for an Assured Shorthold Tenancy unless the funds are covered by Tenancy Depsoit Scheme ( TDS ). The deposits must be paid to and held by a Scheme Operator or the Landlord can pay a premium to be part of an insured scheme themselves. Alternatively the letting or management agency if one is used can hold the funds.
The consequences for not complying with the new legal requirements are serious. The Landlord could face being fined three months rent for each tenant and be forced to return the deposit to the tenant. He will no longer be able to serve a S21 notice to regain possession of the property through the courts or at the end of the agreement deduct money to pay for any damages to the property until the money has been deposited into a TDS.
We at Property Consultants 365 urge all Landlords letting properties in England and Wales to take heed and be prepared for the law coming into to force thus protecting themselves and their properties from future disputes with tenants.
If you would like further information on how this scheme may affect you please call now on 0191 469 3325 or visit this website for more info.
www.communities.gov.uk/tenancydeposit
