BUSINESS A Word of Warning for
Owners of Rented Properties! Rosanne Ogden, MacPhee & Partners, Solicitors
The Tenancy Deposit Schemes (Scotland) Regula- tions 2011 came into force in March 2011. The regulations became effective for all new residential leases entered into since July 2012.
When a residential lease is entered into a landlord of- ten requests a deposit from the tenant as security in the event that the tenant fails to comply with his obligations in the Lease. The deposit could be used by the landlord to cover the cost of damage to the property caused by the tenant, to meet any bills which have been left unpaid, to cover any cleaning costs of the property if it has been left in a substandard condition or to meet any unpaid rent. The deposit must not be more than two months rent.
What action will require to
The scheme is designed to ensure that deposits are not unfairly held by landlords or letting agents. If both the landlord and the tenant agree about the return of the depos- it it must be returned within 5 working days.
be taken by a landlord? In
terms of the Deposit Scheme, the deposit will require to be placed with an independent third party approved by the Scottish Government. It can- not be left in the control of the landlord or their agent. So far the Scottish Government has approved three organisations to hold deposits.
The schemes are free for landlords, tenants and letting agents to join. Any interest accrued is kept by the De- posit Holder.
In terms of the Regulations all deposits must be placed with an approved Deposit Hold- er, even for tenancy agree- ments that commenced prior to March 2011.
Depending
when the tenancy started, the landlord will have a different date to comply with the regu- lations.
Deposit Holders also give a free dispute resolution service, so that if there is a disagree- ment between the landlord and the tenant, that disagree- ment can be resolved quickly to ensure the early release of the deposit.
29
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44