Do you know the Deposit Registration Procedure?
Further to the recent law change on 6th April, all new tenancy deposits need to be registered with a Deposit Stakeholder and there is a complicated procedure which needs to be followed carefully.
There are three different stakeholders to chose from; The Deposit Protection Service, MyDeposits and the Tenancy Dispute Service. We at Harringtons Letting use the Deposit Protection Service as we believe this is the one that best protects Landlords and Tenants deposits as the funds have to be physically transferred to the DPS for them to hold.
Each stakeholder has its own rules and requirements but the basic principle is as follows;-
1) The Landlord or Agent needs to register as a Landlord with one of the above Deposit stakeholders.
2) A clause must be inserted into the Tenancy Agreement prior to tenant signature listing which Stakeholder the Landlord intends to use and the stakeholder procedure for deposit return at the end of the tenancy. The clauses can be downloaded from the relevant stakeholder’s website.
3) A Prescribed Information Form together with the Terms & Conditions of the Stakeholder must be served on the tenants within 30 days of receipt of the deposit. This form lists details of the tenancy and the stakeholder and the best time to serve this form on the tenants is at the same time the tenants sign the tenancy agreement. This form can be downloaded from the relevant stakeholder’s website. DPS , MYDEPOSITS, TDS
4) The Deposit must then be registered with a stakeholder within 30 days of receipt of the deposit. This deadline is strict and must be adhered to. Failure to register will result in the Landlord or Agent being subject to a fine of up to three times the amount of the deposit and they will also not be able to serve a Housing Act Section 21 notice for possession meaning they cannot get their tenants out!
5) If the Landlord or Agent has opted to use the DPS, then the deposit must then be sent to the DPS via cheque for them to hold.
Harringtons Lettings are fully aware of the procedures and are happy to clarify any point. As mentioned previous we are also already registered with the DPS and will be happy to register any deposits on behalf of a Landlord for a small fee of £100 plus VAT. It is better to pay the fee to have peace of mind that all of the steps and procedures have been followed correctly. Please feel free to call us on 01273 749169.