mary2014 Posted September 2, 2014 Report Share Posted September 2, 2014 Hello, I am a new member here. Hope to get some advice about deposit protection here. I have a tenant who started in September 2006 with AST contract fixed for 6 months. It became periodic in March 2007. The tenant still lives there with no problem and on the same rent. What's the legal requirement regarding the deposit which I took in September 2006? Shall I protect the deposit now? Many thanks! Link to comment Share on other sites More sharing options...
Melboy Posted September 2, 2014 Report Share Posted September 2, 2014 This question does crop up frequently and the short answer is yes.........it really as it has all got so confusing with all the Court cases that have been going on. My recommendations are the DPS Insured scheme @ £22.50. Tax deductable. Your in control of the deposit. Link to comment Share on other sites More sharing options...
Grampa Posted September 2, 2014 Report Share Posted September 2, 2014 It is not quite as simple as that. According to the proposed tenancy deposit legislation deregulation bill it wouldn't need protecting, the proposal stated only deposits that were taken before April 2007 and became statutory periodic on or after the 6th April 2007needed to be protected. I would suggest that as you are on good terms with your tenant (for now) it would be best (to be on the safe side) to return the deposit now to save any possible future problems with confused or unknowledgeable judges. Remember certain unprotected deposit scenarios are not resolved by just protected the deposit and if done the s21 will still be invalid so you don't want any court judgement ruled incorrectly due misinterpretation. Link to comment Share on other sites More sharing options...
Mortitia Posted September 4, 2014 Report Share Posted September 4, 2014 I would go for having a friendly discussion with the tenant over the changing and confusing laws around deposit protection and say it would be best to return his/her deposit, take it again and protect it. The DPS is the easiest to use. Go back to tenant with cash deposit and receipt Make sure you get the tenant to sign a receipt saying they received the deposit back. If you can do this transaction all in one go that would be best so you come away with the cash again. Get the 'new' deposit protected and serve the PI and deposit details to the tenant. - most important. I have actually done this for a client and all was fine. Link to comment Share on other sites More sharing options...
Richlist Posted September 4, 2014 Report Share Posted September 4, 2014 http://boards.fool.co.uk/superstrike-again-13084990.aspx?sort=threaded Link to comment Share on other sites More sharing options...
Mortitia Posted September 4, 2014 Report Share Posted September 4, 2014 Yes this is the max fine in this case Richlist but the tenant in of Mary was in the property from 2006 so it is unlikely that such stringent penalties would apply. Link to comment Share on other sites More sharing options...
mary2014 Posted September 15, 2014 Author Report Share Posted September 15, 2014 Thank you all for your advice, much appreciated! Our letting agent suggested that we do not need to protect the deposit as it became periodic before April 2007. Having read your advice here we will either protect the deposit or return it to tenant, just to avoid any future legal problems. Many thanks again. Link to comment Share on other sites More sharing options...
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