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Tenant deposit scheme renewal

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Author Topic: Tenant deposit scheme renewal  (Read 95 times)
Newbie
Posts: 4

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« on: September 01, 2020, 08:08:39 AM »

Hi All, thanks for your thoughts in advance.

I protected my tenant's deposit via the DPS Insured Scheme for a year long tenancy.  The tenant has since renewed three times, all with year long tenancies, and has now served notice within the 3rd tenancy. 

My understanding was that the insured scheme ran for as long as the tenant was in situ as it states there are no renewals required, but as part of the checkout I've reviewed the deposit scheme and the order status is now 'closed'.  It appears the scheme was closed at the end of the first fixed term.  On reading the terms and conditions, it states that DPS will send the landlord a reminder 1 month before the tenancy end date in order for the landlord to notify whether the tenancy is ending, continuing as a periodic, or renewing on a fixed term.  If the landlord does not respond, the DPS will notify the landlord that the deposit is not protected and will close the scheme.  It also states the DPS notifications can be sent via email, SMS or post.  I have never received any notifications by any means of the scheme reaching an end or being closed.  If I had received notification of the scheme closing I would have taken action.

My questions are:
1) If I want to discuss retaining some of the deposit with tenant due to some damage, what standing do I have to do so given the deposit has not been protected since the end of the 1st tenancy agreement?
2) Can I challenge DPS based on not receiving any notifications as laid out above?

Thanks

Jr. Member
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« Reply #1 on: September 01, 2020, 08:44:45 AM »

1) you can still propose deposit deductions but you cannot go to a deposit dispute.  If the tenant knows the deposit hasn't been protected then you are in a vulnerable position.

2) it is your responsibility to renew your deposit protection so I can't see DPS accepting liability.  You can always call them to discuss with them what happened and see if they can protect the deposit.
Newbie
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« Reply #2 on: September 01, 2020, 08:56:05 AM »

Thanks for the advice INSPECTOR, appreciated.
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« Reply #3 on: September 01, 2020, 09:48:55 AM »

The Schemes work like you describe. If you're Insured a Deposit the Scheme will write an email to you and let you know a decision is heading your way. That is the limit of what they do. If you don't receive that email it's not their problem, if it went into your junk that's not their problem, if you simply ignored it that's not their problem - you must take affirmative action on the tenancy otherwise it will go unprotected... and if you want to re-protect immediately then a new fee will be required too. I feel you could only challenge the Scheme by somehow proving they never sent you any communication... but even then they may say that's just some value-add they try to do to try and help you out - as a Landlord you're really supposed to keep on top of admin. like this. You know all the dates better than anyone, right?

More concerning... I suppose... is that you're open to a claim for 1x to 3x (x tenancies) for non-protection... what kind of Tenant do you have here? I don't see that the Scheme in question should offer any leeway - after all, it's been quite a while you've not noticed now.
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« Reply #4 on: September 04, 2020, 11:32:25 PM »

Thanks HIPPOGRIFF, understood.
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« Reply #5 on: September 16, 2020, 04:52:27 PM »

The DPS introduced a new computer system in May 2018 so this may be why you received the message indicating that the deposit didn't exist.
Recently, I tried looking up some past deposit IDs for a few years ago and received a message that the deposits did not exist, which was worrying. 
My tenants might think that I didn't put their deposit in the scheme when I clearly did this.
I contacted the DPS and they informed me that if I needed any further details pre-2018, I should email them - contactus@depositprotection.com 
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