(1888PressRelease)
August 04, 2007 - Earlier this year, a new piece of legislation regarding tenancy deposits came into force. From April 6th 2007, all deposits taken by landlords are now subject to the provisions of the Tenancy Deposit Protection Scheme.
However, despite the fact that these new rules are of relevance and importance to everybody operating in the residential landlord market, one industry body said this week that there is still "a lot of ignorance" about the TDPS.
According to the Residential Landlords Association (RLA), there is a lack of awareness about the rules on the part of both landlords and tenants. Spokesman Chris Town said that there has not been enough publicity about the scheme and for those who do not use the internet, it can be difficult to locate information.
"I don't think there's been the publicity and I don't think it's something that's high on the radar for tenants. I dare say there's a number of landlords who are not aware of it as well, or maybe don't understand it and maybe they don't look around," he opined.
So how does the scheme work?
When the tenant agrees to rent a property, a deposit is payable in the usual way. Within the next two weeks, the landlord should provide the tenant with details of their rights and responsibilities under the scheme.
One important provision is that the parties are invited to make use of a dispute resolution scheme to settle any differences they have. Tenancies will occasionally end acrimoniously and it may be that the landlord feels entitled to retain the deposit, for instance if it is felt that the property or furnishings have been damaged.
Where the parties are in disagreement about whether any deposit should be retained in whole or part and agree to the dispute resolution process, they are bound by any decision made and must abide by it.
Despite the fact that the RLA is not convinced that the scheme is necessary - "The sums involved are relatively low…It's a sledge hammer to crack a nut basically" - it seems like the scheme is here to stay, at least for the time being.
Whatever their personal feelings about the effects or necessity of the scheme, landlords would be well advised to familiarise themselves with the provisions of the TDPS. If a tenant takes a landlord to court and can prove the landlord has not complied with the scheme, the court will order the landlord to refund the tenant three times the deposit amount.
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