Are you going to face an unlimited fine come 26th June this year?
Those of you out there with long standing or long term tenants could face a huge fine if the deposit you hold for them has not and was not registered correctly at the start of their tenancy or if the deposit was not dealt with correctly when the tenancy ‘rolled over’ or renewed.
The deadline for these registrations is 23rd June 2016 and it is believed that fines from this date on could be unlimited and substantial. There is currently a 90 day amnesty to get this in order which start on 26th March under the Deregulation Act.
It is also believed this could affect 1 in 3 of Britain’s landlord even though the regulation was passed back in 2007. So the question is… did you do it right? Are you doing it right now?
Who is most affected?
It is believed that those most affected will be the landlord who is a DIY landlord, and may not have been aware of the regulation change back in 2007, therefore the initial deposit may not have been registered correctly and subsequently it was not dealt with correctly at renewal time either. The other most likely to be affected is the landlord who’s tenant moved in prior to 2007, then ‘rolled over’ onto a Statutory periodic Holdover after the end of their fixed term as again this could have been dealt with directly with the landlord and tenant and with no agency involved the landlord may not have been made aware of the legislation change.
And the most worrying thought is that we are still coming across landlords who have been using other agents since 2007 and are still not aware of this legislation change and have even been paying for the job not to be done properly.
Therefore I would urge EVERY landlord reading this to check the deposit that is held either by you, your agent or any other 3rd party is correctly registered within one of the protection schemes run by the government. If it is not, DO IT NOW!! Then have a very, very long think about what you have been paying your agent for and have then been looking out for your best interests.