It’s a big day for private landlords and tenants in Scotland as the deadline passes for registering for deposit protection.
Landlords who have collected a deposit for a buy to let home or shared house in multiple occupation since March 7, 2011, must register the money with an official tenant deposit protection scheme from today (November 13, 2012).
Tenants can take a landlord to court for compensation of up to three times the deposit amount plus legal costs if a deposit remains unprotected.
Landlords will also have their rights to evict a tenant restricted if they have not registered the deposit and supplied the details of the scheme to the tenant.
The result could be costly for landlords who have overlooked the deadline – the latest research suggest just over half of tenants (52%) are aware of the deposit protection scheme starting in Scotland, but most (92%) have not yet discussed protecting their deposit with their landlord.
The tenancy deposit protection scheme has successfully run in England and Wales for several years, providing an independent arbitration service for disputes over the return of a deposit at the end of a
Eddie Hooker, CEO of my|deposits Scotland, said: “It is encouraging that we’ve seen a rise in awareness among tenants in Scotland at this stage and this will only improve with time.
“The legislation was introduced in order to protect the tenant’s money so it’s vital that tenants ask their landlord or letting agent where their deposit has been protected.
“Tenants should also make sure they receive the deposit details from their landlord or letting agent within 30 working days of the beginning of the tenancy.”
Go to the Scottish Government web site for more information about the scheme (Opens in new window)