As a landlord, you’ll know about the statutory tenancy deposit scheme. But did you know that it could now apply to leases signed before 2007?
This follows a new high court ruling that states that periodic tenancies also come under the scheme. Periodic tenancies are created when a fixed-term tenancy comes to an end but the tenant continues to live at the property on a rolling month-by-month basis.
The court decided that when this happens, it is not an extension of the old contract, but a new one. This means that the tenant is effectively re-submitting the deposit. So it now comes under the statutory tenancy deposit scheme.
Due to the ruling, hundreds of landlords may have been breaking the law since the new regulations came into force in 2007. To make sure this isn’t you, you should take a look at all your tenancies and make sure you’re holding the deposits for them correctly. Pay particular attention to those created before 2007 that may have expired and may now come under the deposit scheme.
If your tenancies come under the statutory deposit scheme, you should:
- Ring-fence any deposits taken from tenants
- Place them in an approved statutory deposit scheme within 30 days of receipt
- Provide tenants with information on the scheme you have chosen.
A report released after the ruling noted that a number of landlords often forget to comply with the above steps, or are simply unaware that they are required to do so.
If you don’t comply, you could be breaking the law. To ensure you don’t do this, why not take a look at our property management service? We can collect your deposits and ensure they are placed in a suitable scheme, so you can sit back and relax while we do the hard work for you.
We also offer our own deposit protection scheme for landlords. You can find out more about this and any of our other property management services by dropping an email to our team at firstname.lastname@example.org.