Friday, 15 June 2012

Penalties Landlords Face If Deposit Not Placed in TDS Scheme

What are the penalities if a Landlord fails to place the tenants money in a Tenancy Deposit Scheme within 30 days.

Under the Localism Act 2011 if the tenancy is still ongoing the Court must order that the whole of the  deposit be  paid to tenant or into a  custodial TDS scheme.

If however the tenancy is over the Court may order the deposit to be paid in full to the client or alternatively the deposit may be ordered to be used by the Landlord for unpaid rent, or to offset damage to the property etc

The actual penalty that will be payable is variable and will be anything between 1 and 3 x the amount of the deposit.

This published article may contain information of general interest about current legal issues, but does not give legal advice

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