With effect from 2 November 2015 residential leases in Jersey
are subject to the residential tenancy deposit scheme (the
"Scheme"). The Residential Tenancy (Deposit Scheme)
(Jersey) Regulations 2014 have come into force under the
Residential Tenancy (Jersey) Law 2011 (the "Law") and
introduces the Scheme, a government authorised tenancy deposit
protection scheme designed to safeguard tenants' deposits and
regulate their return at the end of a tenancy. The Scheme will in
the first instance be administered by MyDeposits Jersey.
WHEN DOES THE SCHEME APPLY?
The Scheme applies to all new,
renewed or varied residential tenancy agreements.
landlords/letting/managing agents to lodge a tenant's deposit
with MyDeposits (as administrator of the Scheme) within 30 days of
receipt. Failure to do so is an offence and can incur a fine of up
Landlords of existing tenancies can
also voluntarily choose to use the Scheme inorder to protect their
JOINING THE SCHEME AND LODGING THE DEPOSIT
It is free for landlords or
letting/managing agents to join the Scheme.
There is a charge of £20 plus
GST charge for registering each deposit and this charge is deducted
from the tenant's deposit.
The Scheme safeguards the deposits in
a regulated bank until they are due for repayment at the end of a
On receipt of the deposit from the
landlord MyDeposits send a confirmation to both the
landlord/letting/managing agent and the tenant, including the
amount paid, how to get the deposit back and what to do if there is
a dispute over the deposit.
RETURN OF THE DEPOSIT
Either party can apply to MyDeposits
for the deposit to be released at the end of the tenancy.
Both the landlord/letting/managing
agent and the tenant must authorise its release and it will then be
released within 5 working days following authorisation.
Landlords and tenants are encouraged
to agree the amount of deposit to be returned between them to speed
up the release process.
If the landlord believes the tenant has breached the terms of
the tenancy agreement (eg. failed to pay the rent or damaged the
property) and if the tenant disagrees, the parties are able to use
the free Alternative Dispute Resolution Service (ADR) and the case
will be referred to an independent adjudicator.
MyDeposits can only deal with deposit disputes up to the amount
of the deposit and any monies claimed over the deposit amount will
need to be pursued via the Petty Debts Court, in accordance with
the provisions of the Law.
ADVICE FOR LANDLORDS/AGENTS
At the start of the tenancy:
have a clear and well drafted tenancy
agreement to reduce the possibility of any disputes over the
deposit at the end of the tenancy;
have a full and detailed record of
the fixtures, fittings and decorative state of the property,
including photographs, approved/signed by both parties;
advise the tenant of the £20
plus GST charge being deducted from their deposit;
register with MyDeposits and lodge
the tenant's deposit within 30 days of receipt;
keep receipts and invoices for any
charges incurred during the tenancy for cleaning, replacing any
contents, repair costs etc. for which the tenant may be
keep a record of all rent received or
retain copies of all exchanges of
e-mail/correspondence between the parties.
At the end of the tenancy:
arrange a meeting with the tenant at
the property to review its overall state and check the inventory to
ensure that the terms of the tenancy agreement have been met;
send a copy of any check out report
to the tenant to agree the amount of the deposit to be
If the Landlord sells the property part way through the tenancy
with the tenant still resident:
MyDeposits will continue to hold the
deposit for the remainder of the term of the tenancy until it is
due for repayment.
Any new landlord must ensure that the
deposit has been submitted to the Scheme within the 30 day time
The Scheme will transfer the deposit
between 2 landlord accounts when requested to do so by appropriate
It is important when entering into any contract, lease or
tenancy agreement to consider your rights and obligations and, in
particular with the new Scheme in place. At Carey Olsen, we have a
dedicated specialised Property Group which has considerable
strength in depth and experience of the landlord and tenant area of
Jersey Law. We would be delighted to advise agents, landlords or
tenants on the practical implications of the Law and the
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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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
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