Confusing DPS legislation

[hogget]

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

[SPEEDTWIN]

If a new contract has been signed since 6th april 2007 the deposit has to be protected and certain prescribed info given to the tenant.

To clear up any doubts and if you want the tenants to stay issuea new contract now and protect the deposit within 14 days