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Landlords beware - forgetting to lodge tenants deposit results in compensation pay-outs

A recent case at Edinburgh Sheriff Court ordered a landlord to compensate a tenant for his failure to follow the Tenancy Deposit Schemes (Scotland) Regulations 2011. The landlord failed to pay the tenant's deposit into an approved scheme, which is a requirement under the Regulations. Under Regulation 9 the tenant is entitled to make an application to the Sheriff for an award of money against the landlord for failure to comply with the regulations.

The court considered the matter and ordered the landlord to compensate the tenant for this failure. The landlord was ordered to pay the tenant a sum equivalent to double the initial deposit.

The court was not willing to accept that the landlord was not aware of the Regulations as the lease specifically referred to these.

The Regulations and this subsequent decision could have a detrimental effect on landlords who find themselves in this position. 

The maximum compensation payable is up to three times the deposit. It is important that landlords are familiar with the regulations and their obligations.

Landlords should therefore make sure that all deposits are lodged in a government approved tenancy deposit scheme.

If you have any further questions on how the regulations and case may affect you please contact Lucy Harington. 

Look out for our upcoming updates on the Private Housing (Tenancies) (Scotland) Act in which we will outline changes to the Act and their potential impact.

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