LETTING & ESTATE AGENT

Scheme to unprotect deposits when tenancies go statutory periodic

Scheme to unprotect deposits when tenancies go statutory periodic

MyDeposits is to end deposit protection automatically after the end of the fixed term of the tenancy unless specific action is taken by the agent or landlord. The scheme, a spin-off of the National Landlords Association, has not appeared to make any announcement about the change, but details appear on its website. It says that users of its scheme – mainly landlords, but also a number of agents – will have 30 calendar days from the end of the fixed term of the tenancy agreement to renew or extend the deposit protection. The agent or landlord must also re-issue the Prescribed Information to a tenant who stays on when the tenancy becomes statutory periodic. If the same tenant stays on but signs a new fixed-term AST agreement, then new Prescribed Information must be issued. The scheme will send four email alerts as the automatic unprotection date approaches. In a FAQ section, Mydeposits says it is unprotecting deposits as a result of the Superstrike case.

 

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