Your Legal obligation to register a deposit – What should I do?
When you take a deposit on an Assured Shorthold Tenancy (AST) agreement in England and Wales you’ll need to protect it with a government scheme within 30 calendar days of receiving it, and provide the tenant with the Prescribed Information within the same deadline.
Fail to comply and your tenant could take you to court where penalties include a fine between one and three times the deposit amount.
How to comply:
Mydeposits is designed to ensure you comply with your legal obligations.
With over 100,000 members, mydeposits enables you to comply whilst keeping hold of the deposit in your bank account for the duration of the tenancy. Here’s how it works:
Become a mydeposits member. This is a one off process, once you join you can start protecting deposits.
Protect each deposit you take from your tenant by registering key details about the tenancy in your mydeposits online member account.
Pass your tenant the Prescribed Information (which consists of the Deposit Protection Certificate produced after the deposit is successfully protected and the my|deposits Information for Tenants leaflet).
ü Once protected, you hold the deposit for the duration of the Tenancy Agreement.
ü The protection covers the full length of the Tenancy Agreement and any Statutory Periodic Tenancy (provided you inform us of the extension).
ü At the end of the tenancy you are free to negotiate the return of the deposit (and propose necessary deductions) with your tenant and return it immediately.