When you take a security deposit, you must protect it in one of the approved deposit protection schemes. And you must make sure that you provide the ‘Prescribed Information’ about the deposit to the tenant within 30 days. The schemes will provide you with all of the information you need.

If you fail to protect the deposit, you’ll be barred from seeking possession of the property using Section 21 of the Housing Act 1988 (the Accelerated Procedure) because any Section 21 notice you serve will not be valid. You also risk your tenant making a claim against you under section 214 of the Housing Act 2004 (as amended by the Localism Act 2011) for a penalty of up to three times the amount of the deposit.

If you don’t protect the deposit at the beginning of the tenancy and you want to serve a Section 21 notice, you can’t remedy this by protecting the deposit at a later date. The only way to remedy the situation will be return the deposit to the tenant before you serve the Section 21 notice.

If you’re in this situation, you should seek advice. Remember, you’re not obliged to take a deposit and some landlords prefer not to. Give me a quick call now on 01482 324252 or email scm@gosschalks.co.uk and I’ll be happy to advise you on this.

The case of Superstrike Ltd v Marino Rodriguez has had an effect on deposits taken before April 2007, which became periodic tenancies after April 2007.  If you have a tenancy to which this applies, you should seek advice.

Need advice on protecting your deposits?

Call me now on 01482 324252 or email scm@gosschalks.co.uk   to see how I can help you.