Monday, 27 June 2016

Landlords warned to use secure deposit schemes

Private landlords must make sure they pay tenants’ deposits into government backed tenant deposit schemes or risk losing out, the director of Landlord Action has said.

Paul Shamplina was speaking out after a case in which tenants trashed an apartment and abandoned it owing three months rent. Despite this their landlord ended up paying them more money after taking them to court because she had not paid into a tenancy deposit scheme as required.

Mr Shamplina added: ‘Our advice to landlords is to think seriously about paying the deposit into the scheme, even if it’s late, before issuing a claim at court.

‘More and more judges are allowing compensation to tenants if deposits are not paid in the schemes correctly.

‘In this case it is, unfortunately, the landlord who has been punished for not correctly paying the deposit into the government bonded scheme and has been awarded against in a counterclaim, which has been offset against his claim.’

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