Penalties for not complying with deposit laws
by Christopher Evans
Landlords could find themselves facing large penalties if they fail to properly protect their tenants' deposits
A spokesman for the Tenancy Deposit Scheme explained that those who do not comply with the law may be summoned before the courts.
They could then be forced to pay their tenants three times the original value of the deposit as a penalty.
He advised tenants to ask for proof that their deposit has been registered in one of three accredited deposit schemes.
Landlords should be able to provide this proof quickly to avoid any unnecessary disputes with tenants.
The spokesman's comments come after research by the housing charity Shelter revealed that one in four landlords have not heard of the Tenancy Deposit Scheme.
One fifth of tenants were also in the dark when it came to the legislation.
The Tenancy Deposit Scheme was established under the Housing Act 2004 and came into effect in April 2007.
It covers all deposits taken for assured shorthold tenancies after this date.
- Landlord and Tenancy News from Lawpack: Give tenants the right information concerning their tenancy deposit protection with our Section 213 Notice.
Published on: September 14, 2010
Did you like this article? Share it!