June 2012 Tenancy deposit scheme is coming to Scotland! … are you prepared ?

scheme

Dear Landlords

On 7th March 2011 the Tenancy Deposit Scheme (Scotland) Regulations 2011 came into force. These Regulations will change the way in which you deal with deposits. From 2nd July 2012, you will be required to hand over the deposit to one of the 3 approved Government Schemes who will hold the deposit until the end of the tenancy. At the end of the tenancy you will need to agree with the tenant how the deposit should be allocated and advise the Scheme holding the deposit.  The Scheme will then repay the deposit in accordance with the agreement unless there is a dispute between the parties over the deposit allocation.

Three schemes have been approved:

  • The Letting Protection Service Scotland
  • Safedeposits Scotland
  • My|deposits Scotland

All three schemes will start operating on Monday 2 July 2012.

The legal duties on landlords who receive a deposit in connection with a relevant tenancy will also be triggered from 2 July. The legal duties on landlords are:

  • to pay deposits to an approved tenancy deposit scheme
  • to provide the tenant with key information about the tenancy and deposit

Landlords – make sure that you have a thorough inventory and schedule of condition at check-in and check-out.

Without these key documents you may not be able to show if the property has deteriorated during the course of the tenancy and if the deterioration is the tenant’s responsibility. Make sure you have these in place for all new tenancies. Ideally, photographs will accompany the check in and check out report and make sure these are dated and preferably signed by the tenants – or better still, embedded within the reports, – it may cost you extra but we would recommend for all Landlords to carry out inventory schedules for their portfolio, Solaris Properties has inventory clerks at our disposal for our clientelle.

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