Are you protecting your own tenancy deposits?

Are you protecting your own tenancy deposits?

A very important change for all landlords using MyDeposit scheme to protect their deposits! After the end of the fixed term of the tenancy, MyDeposit will automatically unprotect the deposit unless the landlord takes action.

It seems that this change has not been publicised anywhere but simply appeared on MyDeposit website. What it means is that unless the landlord takes action to renew the protection (at the end of the fixed term of the tenancy), the scheme will automatically unprotect the deposit leaving the landlord being in breach of the tenancy deposit protection law.

That, as we have mentioned previously, is quite a serious matter that may leave the landlord considerably out of pocket. Have a look at our previous news item when we mention companies acting on ‘no win, no fee’ basis that are targeting tenancy deposits claims.

The MyDeposit Scheme, in its FAQ section, says:

“ … We will automatically unprotect a deposit protection 30 days after the fixed term ends unless you inform us tenancy has rolled into an SPT or has been renewed. You will receive several email reminders to make you aware that the protection is coming to an end. Please make sure your email address is up to date.”

The link to their websites describing how it works is here.

This is an excellent example (as many other changes we have reported) that as a landlord you really must stay on top of the game as it is sometimes very easy to get caught off guard. Over the last 5 years there seems to be an increasing number of changes in law or brand new legislation that require landlords to make sure they stay informed and compliant with law.