15.09.2011 - The Tenancy Deposit Protection Scheme still remains a potential -sting in the tail -for some hard-pressed Landlords.

Although I act for a number of local Letting Agents when they are obliged, on behalf of their Clients, to obtain possession of a property when tenants default on the payment of rent, I have recently witnessed a rise in the number of Landlords who have instructed me privately and a worryingly large number of those have failed to protect the deposit that they collect from their Tenants in one of the recognised schemes.

Often this is an oversight on their part but sometimes, although the obligation came into force on 6th April 2007, the Landlord is still blissfully unaware of their statutory obligation.

An offending Landlord can be ordered, in addition to returning the Deposit, to pay his Tenant up to three times the amount of the Deposit by way of a penalty and this is clearly the most bitter of pills to swallow for a Landlord whose Tenant has defaulted on rental payments and run up substantial arrears!

It is perhaps prudent therefore to remind Landlords, who opt not to utilise the services of a Letting Agent, of their statutory obligation in relation to the Deposit Protection Scheme as, in my experience, the risks that Landlords face in the current economic climate are quite sufficient without having to endure a further, self-imposed, “sting in the tail”

If in doubt it is usually wise to seek advice upon Landlord and Tenant matters, as a failure to do so may well prove to be a false economy!

Andrew McPhee

Did you know..?

The current Inheritance Tax Threshold is £325,000