RLA reveals confusion over tenancy deposit laws
There is still some confusion among landlords regarding mandatory tenancy deposit protection, even though it became law almost four years ago.
The Residential Landlords Association (RLA) said it is still receiving calls from those with buy-to-let properties who are unsure about their obligations.
Since April 6th 2007, landlords letting property under an assured shorthold tenancy have been legally required to register tenant deposits in a certified scheme.
There are three approved schemes in operation - the Deposit Protection Service, the Tenancy Deposit Scheme and MyDeposits.
Landlords who do not comply can be taken to court by their tenants and forced to repay up to three times the monies owed.
However, the RLA said some landlords are still unclear about what is required of them, with one individual claiming he did not need to register deposits until all the rooms in his rental property were let out.
Another landlord believed that because he was licensed to let houses in multiple occupation, he was exempt from the law.
One managing agent also contacted the organisation asking for information about the legislation, even though he was already taking care of almost 200 buy-to-let properties.
Recent figures released by the Tenancy Deposit Scheme show that up to a million private sector tenants with combined deposits worth up to £1 billion could be missing out on protection because of confusion over the law.
Since the scheme began in 2007, it has protected more than £2 million in deposits and there are currently 1.5 million tenants registered.
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