Tenancy Deposit scheme applicable if tenancy started in 2003?

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    Tenancy Deposit scheme applicable if tenancy started in 2003?

    i am having a (minor) dispute with some tenants who moved into a flat of mine in 2003.

    If the deposit was taken (by me) before the scheme started and not held in a tenancy deposit scheme from 2007, am I still breaking the law, bearing in mind that there has been no break in tenancy since 2003, or should I have transferred their deposit to a scheme?

    (I have returned the majority of their deposit) The disputed amount is about £250 - ridiculous i know, but the tenants haven't cleaned properly for 6 years!!)

    thanks for any advice!

    Have you renewed the tenancy agreement anytime after April 2007?


      yes, they got a new AST contract every year. but it did state that I held the deposit (ie was a copy of the orginal contract)


        You should have transferred their deposit to a scheme when you issued a new AST after April 2007.

        So if I was you, I would return the deposit to them in full. They won't be able to claim the 3x penalty, if you return all of their deposit.


          Mrs Mugs advice is the percieved wisdom on this board, and I personally would do exactly that. HOWEVER, it hasn't been tested in the High Court so there isn't really a precedent. I have read elsewhere that a non-protected pre-2007 deposit does not automatically attract the 3x sanction, even if there has been a new agreement.

          I wouldn't be willing to risk a hassle-filled court-case for the sake of £250.

          How about - as a compromise - you say to the tenant, you can have your £250 back if you come and clean your pig-sty? Arrange a specific day for them to do it. They won't do it to a professional standard, but it should make the cost of employing real cleaners cheaper.

          If they turn around and say "go away" or something similar then you'd be advised to return the £250 anyway. But if you don't ask, you don't get.


            Protect, protect, protect...

            NLA advice on this would be that if you've issued ANY AST since April 2007, then the deposit has to be protected.

            Even if you hand the full deposit back now (and this is what we suggest), then he tenant could still start proceedings against you and the judge (IMHO) is likely to find against you.

            Yes, no case has got to the High Court, but unless you want to push it and pay to be the test case...

            The question should be: have I issued any ASTs since April 2007? If so, protect, protect, protect...


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