The Tenancy Deposit Service have claimed that up to a million private sector deposit remain unprotected. Please make sure that you are not one of these landlords.
Failure to protect your deposit could result in a Court ordering that you have to protect the deposit and pay the tenant compensation equivalent to three times the amount of the deposit – if your deposit is £1000, that’s £4000 you will have to pay out, you may also have to pay the tenant’s legal costs.
Further, while the deposit remains unprotected you can not issue a Section 21 Notice (which is the first step towards getting possession).
If you have not protected your deposit yet ensure that it is the first thing you do after reading this.
If you would like any legal advice, please telephone Rebecca Brough at Fidler & Pepper on 01623 448331 or visit our Landlord Legal Advice page