Have you forgotten to protect the tenancy deposit?
Note that the legal system for renting property changed in Wales on 1 December 2022 with the coming into force of the Renting Homes (Wales) Act 2016. However, the deposit rules in England and Wales remain very similar, so Welsh landlords can still use the guide.
Before we start – the Tenant Fees Act 2019
Before we start – the Tenant Fees Act 2019Under the Tenant Fees Act 2019, there is a strict limit (in England) on the amount of deposit you can take – you can find out all about this and use our handy calculation on the FAQ here.
If you have taken more than the allowed deposit, you will not be able to serve your section 21 notice until you have refunded the excess.
Alternative schemes
There are now ‘alternative’ schemes where the tenant essentially pays a modest fee which provides a guarantee to the landlord that he will receive up to a certain sum if the tenant vacates having caused damage or owing money.
The rules set out in this guide do not apply to these alternative schemes. However, note that tenants cannot be forced to use an alternative scheme and a ‘traditional’ deposit option must always be provided to them.
Members will find a FAQ on alternative schemes here.
The Renters Rights Bill
This is due to come into effect some time in 2025, at which time no-fault evictions in England will be abolished. However, it also provides that some evictions using the Section 8 procedure will be conditional upon dealing with deposits correctly.
Under the Tenancy Deposit Regulations:
If you want your tenant to leave, the first thing most landlords do is serve a section 21 notice. Or, in Wales, you may want to serve a notice under one of the Welsh ‘no fault’ grounds. However – horrors!
If you haven’t protected the deposit – you can’t use a no-fault ground for possession
What can you do?
There are a number of solutions, which depend on the precise circumstances of your case.
Which is why I have developed ;
The Tenancy Deposit Compliance Checker
This is a special section of Landlord Law designed to help you with this problem. It guides you by a series of questions, to the answer which applies to YOUR tenancy situation.
Then if necessary, you can regularise your position to allow you to evict your tenant using our DIY Eviction Guide.
The Tenancy Deposit Compliance Checker is a members-only service – so if you are not a Landlord Law member, you’ll need to join before you can use it.
Members – you will see some links under the trail icon. Only use these if you have already followed the full trail, or you may miss something important.
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