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Confusing DPS legislation


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Hi, any advice would be most appreciated. I let a flat to a married couple, who have been in occupancy for two and a half years. I have only just found out about the DPS legislation. I do not use a letting agent. The original AST agreement was for 6 months, and they chose to stay there and the agreement has been extended every 6 months. The original agreement has not been re written, but both parties (them and myself), signed every 6 months, was is entitled “Extension of existing tenancy” The rent has not been increased during the tenancy, and the rent is often about 2 weeks or more late in being paid, often I have to chase them up. I put up with this because I think they are struggling a bit financially, and they have twins, which were born after they moved in. (They did not advise me the wife was pregnant, although I didn’t ask)

As the flat is only one bedroom, I would probably considered it unwise to let them have it, because it was small.

I am not sure if the deposit I originally received should be paid into one of the AST schemes, or as the original agreement was dated prior to April 2007, can I hold it myself? If it should be paid into a scheme, can this be done now, without incurring the 3X deposit penalty, (which may be brought the tenants attention by doing this)

Many thanks for any advice

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