News
COUNTDOWN TO TENANCY DEPOSIT SCHEMES
Following the announcement of the tenancy deposit scheme by the government
in February, Lee Trubshaw, partner at Walsall based Bradin Trubshaw Solicitors
who are the legal experts at the forthcoming Property Investor Show,
advises landlords on the importance of taking note of the legal requirements
of this new scheme.
From April 6th any landlord or letting agent taking a deposit from a tenant is obliged to join a statutory government authorised tenancy deposit scheme to safeguard the deposit. If the deposit has not been protected, you could, as a landlord be ordered to repay three times the amount of the deposit back to the tenant at the end of the agreement.
“It is important that landlords understand all the implications of this new initiative,” commented Lee. “”There are two types of tenancy deposit protection scheme and all will provide a free dispute resolution service. It will make disputes easier to resolve, encourage tenants and landlords to make a clear agreement from the offset on the property’s condition and allow tenants to get all or part of their deposit back when they are entitled.”
Within 14 days or receiving a deposit the landlord must give the tenant information on the scheme used.
The two schemes are custodial and insurance based. The free to use custodial scheme means that the money is held by the scheme until it is time to be repaid. The other insurance-based schemes mean that the landlord retains the deposit and pays the insurance scheme to insure against the landlord failing to repay the tenant. To avoid going to court in the case of a dispute all schemes are supported by an Alternative Dispute Resolution.
“Landlords should be careful in gaining the correct advice and be ready for any deposits taken after the 6th of April. Legal advice is recommended, and landlords should also consider the added security of having a basic tenancy drawn up.”
Bradin Trubshaw is exhibiting at The Property Investor Show at the NEC March 23rd – March 25th. Entrance is free but visitors need to pre-register at www.propertyinvestor.co.uk/birmingham. A comprehensive seminar programme runs across the three days with many property gurus talking on a variety of subjects from tenants from hell to investing overseas, the seminars are £5.00 per head.
ENDS
For more information please contact Clive Reeves on 01543 501111 or email clive@wardlovett.com