AST; Tenancy Deposit Scheme's- The Landlord's Obligations

Since the 6 April 2007 if you take a deposit from your tenant on an Assured Shorthold Tenancy agreement in England and Wales, you must protect that deposit with an authorised tenancy deposit protection scheme, within 14 days of receiving it. The legislation was introduced to help ensure that tenants are able to recover their deposit at the end of their tenancy if they comply with the terms of their tenancy agreement.

At the end of the tenancy if the terms have been broken the landlord and the tenant have the opportunity to discuss the return of the deposit and any deductions from it. The tenant can raise a dispute to reclaim the deposit amount if they are unhappy with the amount the Landlord wishes to withhold. The Landlord must provide evidence to prove their entitlement to the deducted deposit amount

Failure to protect a deposit can result in the following penalties should the tenant decide to take action:

• The Landlord will be unable to obtain a Court Order to regain possession of the property (under Section 21 of the Housing Act 1988) unless and until the deposit is protected.
• The Landlord will be required to either return the deposit to your tenant or to lodge the full amount with the authorised custodial tenancy deposit scheme.
• The Landlord may be instructed to pay the tenant compensation equal to three times the amount of the deposit within 14 days of a Court Order.

Prescribed Information

The Landlord must also provide the tenant with key information relating to the deposit protection, called the Prescribed Information. This includes details about the scheme used to protect the deposit, instructions about disputes and key contact information. You must provide all this information to your tenant within 14 days of receiving the deposit from your tenant.

If you are a landlord with a tenant that has failed to pay their rent or comply with the terms of their lease or if you wish to take possession of your property, then please contact Holly Nichols on 01708 784066 or James Sherratt on 01708 784053 to discuss your options.