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Description
Tenant Deposit Scheme Notices and the Legal Obligations on a Landlord
Under the provisions of the Housing Act 2004, it is a legal requirement for a landlord to provide a Tenant Deposit Scheme Notice to their tenant within 30 days of receiving a tenancy deposit. This notice must be served in writing and must include the information specified by Section 213 of the Act.
The notice must include details about the deposit, where it is being held, and how it will be protected.
The Law around Tenant Deposit Scheme Notices
The relevant legislation governing the provision of Tenant Deposit Scheme Notices is Section 213 of the Housing Act 2004.
This section of the Act states that a landlord must provide a tenant with a Tenant Deposit Scheme Notice within 30 days of receiving a tenancy deposit.
The Section states:
“(1) Where a tenancy deposit has been paid in connection with a shorthold tenancy, the landlord must give to the tenant, or any other person who paid the deposit on behalf of the tenant, the prescribed information (see section 213A) relating to the deposit.
(2) The information must be given -
(a) within the period of 30 days beginning with the date on which the deposit is received by the landlord, or
(b) such longer period as the court may allow in the case of a deposit received before the commencement of this section.”
What is the Tenant Deposit Scheme Notice?
The Tenant Deposit Scheme Notice is a document that a landlord must serve on a tenant in order to comply with the legal obligations of Section 213 of the Housing Act 2004.
The Notice must include the following information:
1. The name and contact details of the landlord or their agent.
2. The address of the property that is being let.
3. The amount of the deposit being paid.
4. The date on which the deposit was received.
5. Details of the Tenancy Deposit Scheme that the deposit is held with.
6. What the deposit is being held for and how the deposit will be returned at the end of the tenancy.
7. How the tenant can dispute the amount to be deducted from the deposit at the end of the tenancy.
8. The landlord's contact details in the event of a dispute.
9. Details of the scheme's Alternative Dispute Resolution (ADR) process.
What happens if a landlord does not serve the notice?
If a landlord fails to serve a Tenant Deposit Scheme Notice on a tenant within the 30 day period specified by Section 213 of the Housing Act 2004, then the tenant may be entitled to compensation.
This has been established by a number of court cases involving landlords who failed to comply with their legal obligations.
Two notable cases are:
Superstrike Ltd v Rodrigues [2013] EWCA Civ 669 and Charalambous v Ng [2017] EWCA Civ 1604. In both cases, the landlords were found to be liable to pay compensation to the tenants for failing to serve a Tenant Deposit Scheme Notice.
The amount of compensation was in the region of three times the amount of the deposit.
Download this compliant Tenant Deposit Notice Now.