If you are a landlord who likes to sit back, relax and watch
rental income flow into your bank accounts, beware! The law in
relation to tenant deposits has changed. If you have taken a
deposit from your tenants and you haven't protected it you
could be in for a bumpy ride and a hefty fine.
As a landlord, you have until 23 June 2015 to protect any
deposits that were taken before 6 April 2007 - 'old'
deposits. If you fail to do this you could face a fine of three
times the deposit and find it hard to get rid of any troublesome
Deposit protection legislation originally came into force in
April 2007 to help deal with issues and disputes at the end of a
tenancy. Landlords now have to protect all deposits in a government
scheme within 30 days of receiving them. There are many schemes out
there which can be used to protect a tenant's deposit, most of
which are simple and cheap to use. These schemes include the
Deposit Protection Service, MyDeposits or the Tenancy Deposit
Scheme. All the schemes have different benefits and costs and are
relatively painless to sign up to.
There will be a few landlords out there that have tenancies
which have continued after the original agreement passed and may
not be aware they now need to register the 'old' deposit;
don't be one of them. These landlords who have created
tenancies before 6 April 2007 and have not protected the deposits
are the likely bunch to be caught out by the change in the law.
These roll over agreements could potentially cause a landlord a
severe headache and mean they have a little less pocket money to
spend on ice-cream this summer. Under the new law landlords could
face a fine calculated by multiplying the original 'old'
deposit by three.
As a result of the change in the law a landlord cannot serve a
Section 21 'Notice to Quit' on a tenant they may want out,
if they have not protected the 'old' deposit. This is yet
another reason to spark slumbering landlords into action.
for worried landlords, there is a simple way to navigate these
minefields. All you need to do is place the existing 'old'
deposit into a protection scheme and then serve the 'prescribed
information' on the tenant. 'Prescribed information' is
just a legal term for all the information relating to the
protection scheme the landlord is using to protect the deposit and
a few other details about the deposit and the tenancy. It's a
simple process and well worth taking if you want to continue to
There are some exemptions from the new rules on deposits,
however these only apply to a few situations so don't think you
will be safe if you don't act. These exceptions include live-in
landlords, those with tenants paying Ł100,000 a year or more,
corporate tenants and student accommodation offered directly by
universities and all those specifically not included in the
So to put simply - if you have an 'old' pre 6 April 2007
deposit and it has not been protected, act now! Have the deposit
protected before 23 June 2015 so you can enjoy your summer tanning
and avoid turning too red in the face.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The process for obtaining planning permission for development of property in the Cayman Islands has been updated as a result of the latest revision of the Development and Planning Law and accompanying regulations (July 2015).
In principle, when the parties agree to arbitrate, they shall be
bound by that agreement. It should therefore follow that when a
party initiates arbitration proceedings, the other party - the
respondent – will avail itself of the opportunity to present
its case and participate in the proceedings.
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