Which possession proceedings?
Dealing with Deposits
It is important that any issues relating to your deposit are resolved BEFORE you serve any ‘no fault’ possession notices and before you issue proceedings for possession based on rent arrears.
The rules provide that:
- All deposits paid in respect of occupation contracts must be protected with a government-authorised scheme AND
- Contract holders must be served with ‘prescribed information’,
- In both cases, within 30 days of payment of the deposit money to the landlord or his agent (save in certain special situations)
If this is not done, then any no-fault possession notice served will be invalid AND the contract holder can bring a claim against the landlord for a penalty of between one and three times the deposit sum.
This means that proceedings based on no-fault grounds in most cases cannot be brought until the landlord has refunded the deposit money to the contract holders (and is able to prove this).
Rules for older tenancies
If the deposit was paid and the tenancy (as it was called then) became periodic before the deposit regulations came into force on 7 April 2007 (and no subsequent tenancy or renewal form has been given to the tenant), you will still need to protect the deposit before serving your notice. However, you have not done anything wrong by not protecting the deposit earlier and so will not be vulnerable to any financial penalty.
If the tenancy started before 7 April 2007 and became periodic after that date, you should have protected the deposit before 23 June 2015. If you did not, you will be in breach of the rules.
Rent arrears claims
Bringing proceedings based on rent arrears is also vulnerable to problems as contract holders can counterclaim for the penalty for non-compliance with the regulations, which will reduce the rent arrears due – and may even put the landlord in a position where he owes money to the contract holder!
Landlord Law help
We have a ‘Deposit Protection Compliance Checker’ guide on Landlord Law, which will guide you through all the options and what you need to do. There is also a more detailed ‘Deposit Error Repair Kit’ which can be purchased. Alternatively, you may want to take legal advice if you think you may be in breach of the regulations.
- Find out more about our telephone advice service here.
- Find our Tenancy Deposit Compliance Checker here
- Find out about our Deposit Error Repair Kit here.
If you are certain that you have complied with all the requirements of the tenancy deposit regulations, click next below.
