Make sure you’re complying with the law – check your deposit policy!

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

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One thought on “Make sure you’re complying with the law – check your deposit policy!

  1. Mr. Alexander Nikolic

    Dear Rentify,

    I am a Landlord of 30 years now. Nowhere in your glossy, sweet toned , articles you mention the Real problems we have. NON payers ,tenants who do not want to pay their rental.They are choosing to part pay or not pay at all. Even the so called good tenants somewhere along the line drop a nasty surprise.
    deposits are there to Indemnify any damage,to property /after longer periods of time normal wear and tear apply/ outstanding rental ect.,and should be kept by the Landlord. Why do we need this new law, and whose ridiculous proposition was that anyway? Just additional hassle and cost. Tenants have a possibility of seeking legal way of getting what they believe they should.. By the nature Landlords are always traceable.On the other hand Tenant very often disappear without forwarding addresses.Biggest problem in our business are the Non payers. That is why a lot of Landlords are going out of business today more than ever. Judiciary as it stands now is so ineffective ,to the point of being ridiculous.They are no help to us at all. We need more security in tenancy for the Landlords. To obtain a Court order sometimes takes u to 6-8 months before you get rid of the tenant. In larger portfolios with higher gearing ,if it happens in 10% of tenancies business is dead and gone. Leaving Landlords a lot of money out of pocket,very often totally life changing experiences. I am sick and tired of tenants moaning about the state of their accommodation. ONE thing is sure .You can not have a £1000,00 per month flat/house for £600.00. At the end of the day it is ,what you pay is what you get. If you dont like it ,find beter somwhere else. Tenant is a very mobile entity.
    Thank You


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