Deposit protection in Scotland

Transcription

1 Deposit Protection for Scotland Supporting you Deposit protection in Scotland Important information for landlords and letting agents. A government-approved Tenancy Deposit Scheme

2 my deposits Scotland - supporting you Landlords and agents need to ensure they understand tenancy deposit protection and how to protect their tenants deposits within the time scales required. There will be penalties for those who fail to comply. By using my deposits Scotland, landlords and agents can be assured that they are complying with the law and be safe in the knowledge their deposit money is secure. We will be bringing our reputation of outstanding customer service to landlords and agents in Scotland. Eddie Hooker CEO my deposits.co.uk my deposits Scotland is a government-approved Tenancy Deposit Scheme in Scotland. Keep up-to-date with the latest: Visit and sign up for regular alerts and updates.

3 Index What is Tenancy Deposit Protection? 2 Why introduce Tenancy Deposit Protection to Scotland? 2 When will deposit protection begin? 3 How my deposits Scotland will operate 4 The dispute resolution process 5 About my deposits Scotland 6 Our banking arrangements 8 Who is my deposits Scotland? 9 Preparing for Deposit Protection 10 At the beginning of the tenancy 10 During the tenancy 11 At the end of the tenancy 11 Meet Ian Langley, Operations Director, my deposits Scotland 12 How to join 13 1 A government-approved Tenancy Deposit Scheme

4 What is Tenancy Deposit Protection? It s normal practice for a landlord to take a deposit from their tenant as security should the terms of the agreed contract be broken. The new legislation is designed to safeguard the tenant s deposit. Landlords and letting agents must lodge the deposit with a government-approved Tenancy Deposit Scheme to hold for the duration of the tenancy. The deposit is held in a secure bank account until both parties have agreed its return. A free, impartial evidencebased dispute resolution service is available to resolve disputes over deductions to the deposit. Letting agents acting on behalf of landlords must also abide by the new legislation. Why introduce Tenancy Deposit Protection to Scotland? The Scottish Government estimates that each year, between 2.2 million and 3.6 million tenancy deposits are unfairly withheld by landlords*. The new legislation aims to: End the practice of unfairly withholding deposits, Ensure deposits are safeguarded throughout the duration of the tenancy, Ensure that the deposit is returned to the parties quickly and fairly, particularly where there is a dispute over the return of the deposit. *Taken from Review of the Private Rented Sector in March A government-approved Tenancy Deposit Scheme

5 When will deposit protection start? Tenancy deposit protection went live in Scotland on Monday 2 July Landlords and agents can join my deposits Scotland for free, lodge deposits for protection and comply with the legislation. Landlords and Agents must lodge existing deposits for protection, as well as new deposits taken. There are different dates for when deposits must be lodged. Protection deadlines for new deposits Protection deadlines for existing deposits Date deposit received: Your deadline to protect the deposit is: Date deposit received: Your deadline to protect the deposit is: New deposits taken after 2 October 2012 Within 30 working days of the beginning of the tenancy Prior to 7 March 2011 where: Tenancy is renewed on or after 2 October 2012 and before 2 April 2013 Within 30 working days of renewal In any other cases By 15 May A government-approved Tenancy Deposit Scheme

6 How my deposits Scotland operates STEP 1 The landlord/agent takes a deposit from the tenant at the start of the tenancy as usual. STEP 2 STEP 3 The landlord/agent is responsible for placing the deposit into a tenancy deposit scheme within 30 working days of the tenancy commencing. The landlord/agent is also required to supply the tenant with key details of when and where the deposit is protected within 30 working days. STEP 4 The deposit is kept in a designated account by the scheme throughout the tenancy. STEP 5 The landlord/agent specifies the amount of deposit to be returned at the end of the tenancy. STEP 6 The tenant confirms deposit amount to be returned. STEP 7 The deposit money will be returned to the tenant within five working days. 4 A government-approved Tenancy Deposit Scheme

7 The dispute resolution process If the landlord/agent believes the tenant has broken the agreed contract terms (such as unpaid rent or damage to the property) and the tenant disagrees then a free dispute resolution service is available to resolve the issue. The case will then be referred to an independent adjudicator. Any undisputed deposit amount will be returned to the tenant, without waiting for adjudication. STEP 1 Both the landlord/agent and tenant are required to provide evidence to support their claims on the deposit. STEP 2 The adjudicator will review the evidence supplied by both the tenant and the landlord/agent. STEP 3 The adjudicator must come to a decision within 20 working days of receiving the dispute referral. STEP 4 The landlord/agent and tenant will be informed of the decision within five working days. STEP 5 The landlord/agent and tenant have 10 working days to challenge the decision, but only if the adjudicator has erred in law or fact. 5 A government-approved Tenancy Deposit Scheme

8 About my deposits Scotland The legislation may seem complicated, which is why my deposits Scotland is here to support you. We want to ensure that you are able comply with the legislation without complication, that you have confidence in us to hold the deposit money securely, and release it without delay at the end of the tenancy once both parties have agreed to its return. Our pledge: Free to join and use. Deposit money is held in safe, secure UK based bank accounts. Prompt repayment of the deposit money. Outstanding customer service and simple to use systems. Fast and fair dispute resolution. Guidance and support when you need us. Thousands of landlords and letting agents have already lodged their deposit money with my deposits Scotland. 6 A government-approved Tenancy Deposit Scheme

9 Supporting you: 7! 24 7 Bulk deposit uploader: Use our instant bulk uploader to lodge large numbers of deposits for protection at once. Fast repayment of deposit: We will return the deposit once both parties have agreed to its release. Online dispute service: Upload all your dispute claim evidence online, including the tenancy agreement, inventories, photos and video, saving you time and money. Support and guidance: Information, support and guidance is available on all things deposit-related. Complete access: You can access my deposits Scotland online all day, every day to carry out your tasks. 7 A government-approved Tenancy Deposit Scheme

10 Our banking arrangements We were granted a licence by the Scottish Government after an extensive period of consultation, that included supplying detailed information on our banking arrangements. All lodged deposits protected by my deposits Scotland are: Held in secure ring-fenced accounts Held in their own unique client account Separate from other my deposits Scotland funds Held in UK based bank accounts only Covered by the Financial Services Compensation Scheme.! The Scottish government will rigorously monitor our performance using a set of Key Performance Indicators. 8 A government-approved Tenancy Deposit Scheme

11 Who is my deposits? my deposits Scotland is brought to you by my deposits.co.uk, an insurance based Tenancy Deposit Protection Scheme authorised by the Government to operate a scheme in England and Wales. Over 1.2 million tenancy deposits successfully protected since That s over 1 billion worth of deposit money. - 30,000 new deposits successfully protected every month. Preferred scheme for landlords and agents - 3,000 letting agents choose my deposits. - Over 90,000 landlords now use us. Reputation for outstanding customer service - Face-to-face support. - Free workshops. - Guides, case studies and support available. - We always meet our Government set Key Performance Indicators. Experts in dispute resolution - 13,000 deposit disputes resolved successfully by our dispute resolution service. - Winners of international award for Excellence in Dispute Resolution in December 2012 by CEDR (Centre for Effective Dispute Resolution). 9 A government-approved Tenancy Deposit Scheme

12 Preparing for deposit protection Tenancy deposit protection will affect the way landlords and agents let property. The new Regulations mean that if you wish to withhold all or part of the deposit you must provide evidence to prove your claim. Therefore if you provide no, or poor evidence then the adjudicator must award the deposit amount to the tenant. Our experience means we are well placed to offer support and guidance on dispute resolution. The key is to be prepared: Preparing for deposit dispute starts before the tenant moves in, not when the tenant moves out. At the beginning of the tenancy Have a high quality written Tenancy Agreement This is the legal contract with your tenant so ensure it s clear, concise and fair. Badly worded tenancy agreements are a leading cause of landlords and agents losing disputes. Take a written inventory and check-in report This provides a full record of the fixtures, fittings and décor, and records the standard of the property before the tenant moves in. Make sure it s signed and dated by both parties. - Be descriptive and use consistent terms. - The written description is key. Use photos and/or video to support the inventory. - Detail age of items. 10 A government-approved Tenancy Deposit Scheme

13 During the tenancy Keep receipts, invoices for charges incurred during tenancy - Proof of purchase. - Document payments such as cleaning charges, damages, repairs. - Keep bank statements as evidence of costs. Rent payment log book - Accurate record of paid and unpaid rent. Correspondence and witness statements - Keep copies of letters and s between both parties. At the end of the tenancy Complete a check-out report - The check-out compares the overall state of the property at the end of the tenancy with the inventory and check-in report from the start of the tenancy. - Use the same terms and descriptions. - Use photos and videos. - Ask the tenant to attend the check-out. 11 A government-approved Tenancy Deposit Scheme

14 Meet Ian Langley, Operations Director, my deposits Scotland Ian has been involved in deposit protection for over five years since my deposits began operating in England and Wales in He is available by appointment and will be visiting letting agents, solicitors and landlord forums across Scotland to offer an insight into how the dispute resolution process will operate, and giving tips on how to ensure you have the best possible evidence to support your claims. Ian will also be hosting workshops and seminars for landlords and letting agents on preparing for deposit protection, how to use the my deposits Scotland systems. You can contact Ian directly and have your questions answered by someone who has been involved in deposit protection and adjudicating deposit disputes for the last five years. or

15 How to join We are completely free for landlords and letting agents to register and use. Three simple ways to register: Online. The quickest way to register. and click on JOIN NOW By Phone: call our team on By Post: Complete the registration form and pop it in the post.

16 MYDSTDP v Tenancy Deposits (Scotland) Limited trading as my deposits Scotland. Registered in Scotland, SC , to operate a custodial tenancy deposit protection scheme, jointly owned by the National Landlords Association and HFIS plc T/A Hamilton Fraser Insurance (the Scheme Administrator).