Home Recent Landlord News Third of landlords reported not registering deposits

Third of landlords reported not registering deposits

latest-landlord-news-the-bla-british-landlord-association-newsComparethemarket.com has reported a survey conducted by them, reveals that about a third of landlords, which would (if calculated and amplified) represent over 1.5 million landlords across the UK. Comparethemarket.com results from the survey show tenants knew their landlord had not placed their money into a deposit protection scheme.

It is a legal obligation that landlords must, within 30 days, secure the deposit taken by landlords and must be placed in a Government backed tenant deposit scheme. Upon the termination of the tenancy the landlord can deduct money from the deposit as set out in the tenant deposit scheme prescribed information and the tenancy.

It is important for landlords to ensure they give the tenant the deposit certificate and a fully completed tenant deposit scheme prescribed information, within 30 days of the deposit being received.

Oral Contract

The survey also revealed the tenants who took part in the survey one fifth of them did not have a written contract. This might be indicative that the tenants maybe lodgers, living with a resident landlord. Resident landlords who have a lodger frequently let a room in their home on a hand shake. As the lodger does not have exclusive occupation the owner / landlord may not be required to protect the deposit as the arrangement between the lodger / owner is not capable of being an assured shorthold.

Insurance

Mr Chris King, head of home insurance at comparethemarket.com, said: “As Britain’s rental market continues to grow, these levels of underinsurance are concerning.

“Contents insurance policies can offer comprehensive cover and reassurance for tenants should they fall victim to crimes such as burglary, protecting their valuables in a time of need.”

Mr Hanson from the British Landlords Association said “we do not have the the numbers of participants who took part in the survey. Nor do we know if the tenants where tenants or lodgers. So it is difficult to make any comments.”

This article is not legal advice, is not intended to be legal advice. You must not act on anything in this article and you are advised to seek legal advice. For The BLA members landlord Advice Line is free.

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