Private landlord fined for failing to protect deposit

The Larne Times recently reported on a private landlord who was fined £1,650 for failing to protect a tenant’s deposit.

Since 1 April 2013, all private landlords are required to protect their tenants' deposits in one of the DSD approved Tenancy Deposit Schemes. Deposits must be protected by the landlord within 14 days of receipt. There are currently three such schemes operating in Northern Ireland:

• My Deposits
• Tenancy Deposit Scheme Northern Ireland (TDS NI)
• Letting Protection Service Northern Ireland (LPS NI)

Aims of deposit protection

The Scheme sets out to:

• Use an independent third party to protect tenancy deposits
• Ensure quick repayment of deposits
• Provide free access to an independent dispute resolution service
• Provide key information about the tenancy, deposit and safeguards
• Sanction non-compliance
• Improve professionalism of the private rented sector.

Fixed penalty charged

Larne Borough Council recently sanctioned a private landlord with a fixed penalty for failing to comply with the Scheme. Under the legislation the fixed penalty is set at three times the amount of the deposit. In this case that equaled £1,650.

The case arose following investigations carried out by the council when they received a complaint from a private tenant that their landlord had failed to protect their deposit of £550. After looking into the matter, the council was satisfied that the landlord had indeed failed to protect the deposit and, therefore, an offence had been committed.

Sanctions for non compliance

If a tenant has not received information about the protection of their deposit within 28 days of handing it over to the landlord then it is possible that the money has not been protected. In this case, a report should be made to the local council. The local council can issue a fixed penalty for non-compliance or may prosecute where the fine could be up to £20,000.

Find out more about tenancy deposit protection in Northern Ireland

Housing Rights Service has produced a comprehensive Professional Resource on the Tenancy Deposit Schemes which explains, in detail, what landlords need to do to comply with the regulations.