Since April 2007, landlords have had 30 days from receiving a deposit to register it with a bonded deposit scheme. The deposit legislation came into force to help settle disputes at the end of a tenancy, just as the buy-to-let boom was reaching its peak.
New legislation introduced last month state that historic tenancy deposits must be protected meaning landlords and letting agents alike are being urged to act or face hefty fines. Following the Deregulation Act, landlords have until 23 June 2015 to register old deposits which were taken before 6 April 2007. This law specifically relates to tenancies which have continued after the original agreement expired.
It’s not just fines landlords face. Those who fail to register old deposits could find it difficult to remove tenants if and when the time comes as they would have failed in their deposit protection obligations.
To avoid facing a fine, old tenancy deposits must be registered with a scheme such as MyDeposits, the Deposit Protection Service or the Tenancy Deposit Scheme as used by VitalSpace. Separate schemes apply in Scotland and Northern Ireland. The fines are unlimited and in some cases equalled three times the initial deposit.
For landlords looking to seek the assistance of an Urmston letting agents, VitalSpace have state of the art computer accountancy and property management systems with ensure that all deposits are registered within the appropriated timescales.
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