If you are considering becoming a buy-to-let landlord, you are probably trying to find yourself the correct landlord insurance policy for your needs.
What’s more, there are many legal obligations that you comply with, or risk a hefty fine or even imprisonment.
One of your statutory obligations is to protect your tenants’ deposits.
It is a legal requirement for you to protect these deposits in one of three Government-recognised deposit schemes. These are:
- Tenancy Deposit Scheme (TDS)
- Deposit Protection Scheme (DPS)
You must register all deposits in one of these schemes within 30 days of receipt. Failure to this will see you not only breaking the law, but will also make your landlord insurance void.
Once you have registered the deposit, you must supply your tenants with the following information, again within 30 days:
- the address of the property
- value of the deposit taken
- in what scheme the deposit has been protected
- name and contact details of this scheme and its dispute resolution service
- name and contact details of any third party involved with the deposit
- why some of the deposit may be held
- how to apply to receive the deposit back
- what to do in case of a dispute
Courts do not look favourably upon landlords who fail to comply with their responsibilities associated with tenancy deposits.
It is imperative that you are aware of your requirements under the Housing Act 2004. If you are unaware of any legal aspects associated with your role, you must seek urgent legal advice.
What’s more, you can find lots of relevant information on your obligations as a buy-to-let landlord in the resource centre here on the Just Landlords website.