Selective Licensing Nottingham | uncovers tenancy deposits that are not protected

Selective Licensing Nottingham | uncovers tenancy deposits that are not protected

Selective Licensing uncovers tenancy deposits that are not protected?

On August 1st 2018 Nottingham City Council introduced a new licensing scheme for 20,000 landlords and 32,000 properties. Landlords have to complete an online application form which asks if they have a tenancy deposit and how it is protected.

Under rules introduced in 2007 tenancy deposits must be protected in a government registered scheme. If this is not done then tenants have 6 years to claim against a landlord that did not protect their deposit.

The selective licensing application is designed to filter high risk landlords so that the council can concentrate their resources on weeding out rogue landlords.

 

What are the rules?

If you paid your deposit before 6 April 2007

Your situation When your deposit needed to be protected by
Your first fixed term ended on or after 6 April 2007 and you haven’t renewed the tenancy since 23 June 2015
You first renewed your tenancy on or after 6 April 2007 and before 6 April 2012 6 May 2012
You first renewed your tenancy on or after 6 April 2012 30 days after your tenancy was first renewed

 

If you paid your deposit after 6 April 2007

Your situation When your deposit needed to be protected by
Your first fixed term ended on or after 6 April 2007 and you haven’t renewed the tenancy since 23 June 2015
You first renewed your tenancy on or after 6 April 2007 and before 6 April 2012 6 May 2012
You first renewed your tenancy on or after 6 April 2012 30 days after your tenancy was first renewed

 

Who is responsible for protecting the deposit?

Many landlords use agencies for finding their tenants so assume that they protect the deposit but this is not the case. They normally charge extra for this and therefore this can often be overlooked.

Deposits must be protected within 28 days and quite often this is done after the start of the tenancy agreement. Where landlords opt to manage their own properties the transaction with the letting agent ceases and sometimes they can wrongly assume the deposit has been protected.

Landlords are also failing to issue to the tenant the prescribed information relating to the deposit protection. A receipt for this must be created and if this area of landlord tenant law is not complied with the landlord is unable to evict the tenant under a section 21 notice.

Ultimately the landlord is responsible for the deposit and liable for the fines and compensation if things go wrong. If the agent has not protected your deposit when you thought they had you need to get in touch with us now because we can help?

Rogue landlord fined in Sneinton who did not protect a tenancy depoist

What is a Compliance check?

At NGalloway we compliance check all our clients before we complete the application form and if we find issues we work with the landlord to put it right before submitting the application.

Failure to declare all the facts on the application is a criminal offence so landlords are risking a lot if they don’t complete the application form correctly. So if a landlord has not protected a deposit when they should have, it is at that point when the penny drops.

Landlords can face an unlimited fine and face compensation claims of 3 x times the deposit, + the deposit + costs if their tenant finds out and decide to pursue a claim in the county court.

Director Terry Galloway said “Our process takes much longer because we are finding issues, but positively landlords are working with us to put it right and that can only be a good thing for tenants”

He went on “Nottingham City Council are getting a lot of flak for this huge scheme, we are also benefiting because a lot of landlords are coming to us for help, but putting all that aside, some families with very small children in our city are living in some horrendous conditions. Our aim is to help our landlords comply with new laws so they don’t fines whilst improving living conditions for the vulnerable”

NGalloway can help you with the hassle and ensure you are compliant. We find many landlords panicked and confused, we can be your guardian angel,

For more information on our Selective Licensing services

call us today at 01156972829 www.ngalloway.co.uk

Close Menu