Landlords: you don't have to lose control of your deposits

mydeposits.co.uk, a Government-authorised insurance-based tenancy deposit protection scheme protecting over £200 million of deposits, has reminded landlords that they don't have to lose control of their deposits even though they must now be protected throughout the course of the tenancy.

According to the Government, over 1 million deposits have now been protected. Much of this cash has either been deposited in a bank account or retained by a letting agent on behalf of landlords. Either way, it means the landlord hasn't been able to protect and retain their tenants' cash.

mydeposits.co.uk is the only scheme specifically designed for landlords which enables them to hold on to their tenants' deposits instead of handing them over to a third party. The scheme offers an easy to use ‘pay-as-you-go' format with only modest fees.

David Salusbury, Chairman, mydeposits.co.uk, said: "Just because a landlord now has to protect their tenants' deposits, it doesn't mean they have to hand over the cash to a third party. Recent figures have shown that this type of self-regulation for mandatory tenancy deposit protection is working well with only 341 cases being notified to the scheme.

"Landlords who fail to comply with the tenancy deposit protection legislation face considerable risks. They could be forced to pay a fine of up to three times the deposit amount and limits will be placed on their ability to seek possession for as long as the deposit remains unprotected."