Deposit protection scheme and SoD

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    Deposit protection scheme and SoD

    I have just realised that LLs must use the deposit protection scheme if they renew a fixed term agreement after April with an exisiting tenant.

    Firstly, do you think this might stop the rip off practice of making tenants keep renewing fixed terms (and issuing pointless section 21s) in order for agents to earn "renewal fees"? Or will agents want to get as these "old" tenants into the new scheme so they can charge LLs extra fees to cover deposit insurance?

    Secondly, if the agent does make a current tenant sign another fixed term after April, if the agent does not send the tenant details of the deposit scheme within 14 days can the tenant really claim 3 times the value of the deposit!? Do the agents get any warning from the courts first or anything? What if the agent says they send the details, but the tenant says they didn't get them? I can't believe that on day 15 the agent owes the tenant thousands.

    Thanks.

    #2
    One more quick questions...

    My deposit isn't protected by the scheme, but I would like it to be. I rent from an agent. In April, is it reasonable to ask them to put it into the scheme? Is this a sensible thing to do?

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