Deposit protection on renewal with a Fixed AST term

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    Deposit protection on renewal with a Fixed AST term

    Hi, been struggling to find an answer online to this. I have tenants on a 1 year fixed AST expiring in the next few days and I protected the Deposit in DPS custodial scheme. The tenants are renewing for a further 1 year fixed AST, but I wanted to check what do I do with the DPS deposit - when I go into the system, there is no option to renew or amend the dates for the new period. Do I need to repay their deposit and then get them to pay a new deposit which I then re-protect, and serve the usual documents including Prescribed Information?

    #2
    You don't need to do anything at all as long as the landlord, property and tenant(s) are the same.
    Provided the deposit was protected and the prescribed information served within the original 30 day deadline, you're fine.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Yes, you need to provide all the documents again, hence why it is better to let the tenancy go periodic, are you increasing the rent?

      Comment


        #4
        Originally posted by ash72 View Post
        Yes, you need to provide all the documents again, hence why it is better to let the tenancy go periodic, are you increasing the rent?
        No you don't need to provide anything again.
        The Deregulation Act fixed that for all tenancies with a deposit received on or after 6th April 2007.

        Provided you get the details right for the first tenancy, for every new/replacement tenancy thereafter the requirements are deemed to have been met; s215B Housing Act 2004.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Why would the OP have to provide the PI again?
          I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

          I do not answer questions through private messages which should be posted publicly on the forum.

          Comment


            #6
            Insured Scheme,

            You do not need to protect the deposit again if:
            • The tenancy continues on a periodic basis on exactly the same terms.

            You do need to protect the deposit again if:
            • You enter into a new fixed term tenancy agreement
            • The tenancy continues on a periodic basis with material changes to the agreement, such as rent or tenants.

            You protect the deposit again in the circumstances listed above. Unless you notify the deposit scheme otherwise they will assume the tenancy is continuing as a statutory periodic tenancy on exactly the same terms and continue protection on this basis.

            In Custodial, you do not need to do anything as the deposit remains protected until a repayment request is made by either party.

            Comment


              #7
              https://www.tenancydepositscheme.com..._Act_2015.pdf/

              See page 2, 2nd column.
              The deposit does not need to be re-protected nor prescribed information served again on renewal (or at the start of a statutory periodic tenancy) as long as: - The tenant(s), landlord(s) and the premises remain the same; and - The deposit is held in the same scheme
              Assume I know nothing.

              Comment


                #8
                Originally posted by ash72 View Post
                Insured Scheme,[*]You enter into a new fixed term tenancy agreement
                Another reason to avoid insured schemes.
                There isn't a penalty for allowing a protected deposit to become unprotected, but it does affect your ability to issue a section 21 notice.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment


                  #9
                  Perfect, thanks for the advice. Yes. it is same tenants, on same terms, same rent, nothing is changing. It was protected within 30 days and served correctly at the beginning of tenancy.
                  It is DPS Custodial scheme - I saw that advice on the TDS website but for some reason DPS don't put anything on their website about this. Assuming they follow the same requirements, so will keep it in there and not re-serve the PI or do anything else. Thank you all.

                  Comment


                    #10
                    Those particular requirements are statutory rather than scheme specific.
                    Assume I know nothing.

                    Comment

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