Have you forgotten to protect the tenancy deposit?

WalesNote that the legal system for renting property is due to change in Wales on 15 July 2022 when the Renting Homes (Wales) Act 2016 comes into force. Strictly speaking, with effect from that date, this guide will only apply for properties in England. However, the deposit rules in England and Wales will remain very similar so the guide may still be useful for Welsh landlords.

ImageBefore we start – the Tenant Fees Act 2019

Under the Tenant Fees Act 2019 there is a strict limit 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.

Under the Tenancy Deposit Regulations:

If you want your tenant to leave, the first thing most landlords do is serve a section 21 notice.  However – horrors!

If you haven’t protected the tenancy deposit – you can’t use section 21

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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