The Deregulation Act 2015 creates sensible and practical measures for the protection of Tenancy Deposits and the use of Section 21 Notices for both Landlords and Letting Agents.
Deposits – Deposits need to be protected and the prescribed information supplied to tenants within 30 days of receiving the deposit, failure to protect tenants deposits could lead to a fine of up to three times the amount of the deposit. It is no longer necessary to re-issue the prescribed information where a tenancy continues onto a periodic status after the fixed term expires.
Giving Tenants Notice – when issuing a Section 21 Notice to terminate a tenancy, the date of expiry no longer needs to be the last day of a period of tenancy. Under the new rules, two months notice can be served at any time on a periodic tenancy in the same way as within a fixed term tenancy. The tenant is still required to give their notice on the periodic date (usually the day they pay their rent).
Since the 1st of October last year it is no longer possible to issue a Section 21 Notice in the first four months of a tenancy. This gives tenants the same six month security of tenure, but makes timing of giving notice crucial where possession is required at the end of a six month term.
Additionally the notice will only have a shelf life of six months prior to a court hearing for possession from the date of service.
There are also criteria, which if not undertaken correctly, will render the Section 21 Notice invalid:
- If the deposit is not protected in the required time frame (30 days from the day received)
- If the property requires an Housing of Multiple Occupancy licence and does not have one
- If it cannot be evidenced that the tenant was given a copy of the gas safety record
- If it cannot be evidenced that the tenant was given a copy of the Energy Performance Certificate
- If it cannot be evidenced that the tenant was given a copy of the Prescribed Information Form
- If the notice is being served in retaliation following a request for repairs
Where a tenant complains in writing about the condition of a property, the landlord will have to respond within fourteen days in writing setting out what the landlord intends to do about it and works will need to be scheduled promptly. If the landlord fails to reply or replies by giving a Section 21 notice, then the tenant can complain to the local authority who must inspect the property. The tenant can successfully defend the right of the landlord to gain possession. The local authority can issue a notice requiring the landlord to have the work carried out. A Section 21 Notice cannot be served for six months from the date of this notice.
As you can imagine we have robust procedures in place to ensure our managed clients meet their responsibilities.
If you have a property you would like us to manage please feel free to call us in the first instance to discuss how our service may be of benefit to you.
