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  • Deposit Protection

    Do I Need to Re-Issue the Prescribed Information?

    Hi All

    I insured a tenant's deposit with DPS for the initial 6 months and then forgot to inform DPS that is was periodic so it lapsed. Several months went by and then I remembered that I need to re-insure the deposit so I did that but I haven't re-issued the prescribed information. I know the most important thing is to protect the deposit but do I need to re-issue the PI? If yes, how serious a breach is this? I've heard that some hefty fines have been dished out to landlords who fail to protect the deposit and so am slightly concerned about this.
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    Hi Mairin,

    When the tenancy turns periodic you should issue new prescribed information. This is following the hotly debated Superstrike v Rodrigues case last year in which the judge decided that, because he considered a periodic tenancy to be a new tenancy, that new PI should have been served.

    There is currently a bill before Parliament which should end the need to re-issue PI when a tenancy becomes periodic, but until it is passed landlords should continue to do so - I'll keep PT updated as TDS issues new guidance on this.

    You and your tenant will probably see protecting the deposit as more important, but in the words of the High Court - “Parliament regards the landlord’s obligation to provide the Prescribed Information as being of equal importance to his duty to safeguard the tenant’s deposit”. (Suupere vs Nice 2011)

    If you don't serve PI within 30 days you still face a potential penalty of having to return the full deposit, plus between 1 and 3 times the value of the deposit, as well as being unable to use a s.21 notice to evict the tenant. It would require legal action by the tenant, so if you keep a good relationship with your tenant it may not cause a problem.
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    Hi Chris, thanks for the information. It's highly unlikely that I'd run into such a problem with my tenants but I'll re-issue the PI just to be on the safe side.
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