12
Feb 15

Tenancy Deposit Protection with Eddie Hooker

With over 9 million people in the UK now renting properties and the amount of the deposit exceeding £1,000 (Source: mydeposits); the discussion around deposit protection has become political and is at the fore of media coverage.

The Government introduced tenancy deposit protections almost a decade ago to ensure that tenants who have paid a deposit to their landlord or letting agent are entitled to receive all or part of it back at the end of their tenancy.

Eddie Hooker, CEO of Total Landlord Insurance and mydeposits, was recently interviewed on BBC Breakfast about Tenancy Deposit Protection.




Eddie explained that under the legislation, landlords and lettings agents have to protect the tenant’s deposits within 30 days using one of the three deposit schemes in the UK. He stated that landlords and lettings agents must also provide the tenant with a certificate which explains where and how the deposit is being protected.

Unless both of these steps have been taken, a landlord or agent is not able to serve a section 21 notice under the Housing Act 1998 which is to obtain possession of the property once the tenancy expires.

Information landlords must give tenants

• The address of the rented property
• How much is the deposit
• How is the deposit being protected
• The contact details of the Tenancy Deposit Protected scheme and it’s dispute resolution service
• The landlord’s (or the letting agency’s) name and contact details
• The contact details of any third party that has paid the deposit
• Reasons why some of the deposit may be kept
• How to apply to get the deposit back
• What can the tenant do if you can’t get hold of the landlord at the end of the tenancy
• What actions should be made if there’s a dispute over the deposit

(Source: Gov.UK)

The tenancy deposit protection legislation was introduced in April 2007, designed to protect deposits which landlords receive from tenants in order to safeguard any potential breaches of Tenancy Agreements such as failure to pay rent or any damages to the property.

Eddie explains during the interview how Tenancy Deposit Protection works for all the parties involved and discusses the best way to avoid deposit disputes occurring at the end of the tenancy.
Landlords and agents should ensure that all their deposits within their portfolios are protected, whether or not received before the April 2007 legislation. Otherwise, they should return any deposit to the tenants in full as they may face the Section 21 notice to regain possession of the property.

Why landlords should use mydeposits

• mydeposits allows landlords to take control of their deposits
• Landlords are able to hold tenants deposits in their own bank account for the duration of the tenancy agreement
• Landlords can deal with tenants directly without involving the scheme
• Landlords will be complying with the law which requires deposits to be protected within 30 days

For more information and guidance, please visit the mydeposits website

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