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The Law Society - Conveyancing

05

Aug

2013

Tenancy Deposit Schemes and related issues

Landlords need to be wary of recent caselaw which may defeat their desire to serve Notices on their Tenants if they have not taken adequate action, particularly where ‘rolling’ Tenancies are concerned.

 

Following the recent case of Superstrike v. Rodrigues, careful consideration needs to be given to the Protected Tenant Deposit and Prescribed Information.  In this case, an Assured Shorthold Tenancy was created in January 2007 prior to the introduction of the Tenant Deposit Scheme and the tenancy continued as a statutory periodic tenancy from January 2008.  In 2011, the Landlord served a Section 21 Notice to terminate the tenancy.  The Court of Appeal ruled that, when the tenancy continued on a statutory periodic basis, in 2008 a new tenancy was made and a new deposit was deemed to have been served.  As the Landlord did not serve the Prescribed Information, the Landlord was not protected and therefore not entitled to serve a Section 21 Notice.

 

Action is particularly required in the following circumstances:

 

1.         A tenancy created prior to January 2007 where the tenancy is ‘held over’ and becomes a ‘statutory tenancy;

 

2.         Renewal of an Assured Shorthold Tenancy; and

 

3.         A new statutory periodic tenancy or renewal on a fixed-term tenancy where the deposit was protected

 

Failure to have the deposit protected and Prescribed Information served could result in the Landlord being unable to use the Section 21 procedure to evict the tenant and the Landlord may also suffer financial penalty either for failure to serve, or for late service of,  the Prescribed Information.

 

Clients are advised to seek guidance in all Tenancy related matters to avoid the associated delays and costs incurred.

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