ARLA member Leaders – the UK’s largest independently-owned letting agents – is advising tenants and landlords to check with their agents to make sure they are still protected, and for those just about to rent or let a property, to ensure that they only deal with an agent that is a member of a recognised professional body.
Leaders managing director, Paul Weller said: "Ensuring that deposits are protected correctly is just as important for landlords as it is for tenants as the penalties for non-compliance are harsh. The landlord could be ordered to pay three times the deposit to the tenant as compensation for not protecting it properly, and, whilst non-compliant, they also forfeit their right to serve a Section 21 Notice to repossess their property."
Since April 2007, it has been compulsory for every deposit-taking landlord and letting agent in England to use one of two tenancy deposit protection methods: a custodial or insurance-based scheme, for any new or updated tenancies.
Yet shockingly, more than a year after Tenancy Deposit Protection became law, a survey by the Deposit Protection Service (DPS) found that nearly two-thirds of landlords were still failing to protect properly their tenants’ deposits.
By renting or letting through an accredited letting specialist such as Leaders, tenants and landlords can be certain that the deposit will be held safely and released at the end of the tenancy in accordance with the legislation.
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