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Tenancy Deposit Scheme ( TDS) section 213 prescribed information for Landlords |
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One of the less well known aspects of the Tenancy Deposit Scheme (TDS) legislation is that not only does it require the landlord to protect the tenant’s deposit under an approved scheme. |
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| Author: Chris Horne |
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Landlords also need to provide certain prescribed information to the tenant explaining how the tenant's deposit has been protected.
This information has also to be given to any third party / interested party (i.e. someone who has paid the deposit on behalf of the tenant whether in whole or part). For example, a parent who pays the deposit on behalf of a student tenant.
What information does a landlord need to provide?
The Government sets out within Statutory Instrument 797 of 2007 the information that the landlord is required to provide.
In summary of 213 prescribed information it is as follows:
The details of the scheme administrator e.g. The Deposit Protection Service
Any information contained in a leaflet supplied by the scheme which explains how it operates.
The procedures in relation to landlords holding and repaying the deposit and the resolution of any dispute.
Amount of deposit paid by a tenant.
The address of the property to which the tenancy relates.
The landlords details.
The tenants details.
Third party details if appropriate.
The circumstances when all or part of the deposit may be retained by the landlord, by reference to the terms of the tenancy
What happens if landlords don’t provide the prescribed information?
The answer is simple. If a landlord fails to provide this information within 14 days of taking the deposit then the same legal penalties apply to a landlord as if they had not protected the deposit itself. Failure by a landlord to provide the prescribed information means that they are potentially liable as Landlord to a penalty of 3 times of the amount of deposit and in the meantime no valid section 21 notice to obtain possession can be served. I have already witnessed ‘chatrooms’ where unscrupulous tenants are planning to use this bit of legislation to exploit uninformed landlords by either making a quick buck or using the threat to bargain their way out of a difficult corner.
The message for landlords is clear. Just like ensuring that landlords need to use one of the approved schemes in taking tenants deposits landlords also need to provide their tenants with this prescribed information.
CONFUSED LANDLORDS?
Are you unsure about what information you need to provide and in what form?
There is no need to be. Property Hawk has provided a new set of downloadable section 213 prescribed information forms. Just like our FREE tenancy agreement these forms will automatically populate with the information you have already entered when signing up and creating a tenancy. This means you avoid all the additional work of duplicate entry. The forms are already there to be generated and printed off using Property Hawk’s Property Manager.
I always advise where possible that landlords should give the tenant the prescribed information at the same time that they get them to sign the tenancy agreement and inventory. This way all the forms are filled out and served and a landlord can forget about the paper work for a little while at least.
About Author
http://www.propertyhawk.co.uk
Property Hawk is 'The Landlords Homepage' it includes Free Property Management Software, free tenancy agreements, magazine, book, links aimed at the UK Buy to Let Market.
Article Source:
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