Deposit Protection2nd Nov, 2015
With effect from 2 November 2015, it became Law in Jersey that any deposits passed to a landlord or agent from a tenant to rent a home must be lodged for protection, within 30 working days of receipt, with a Jersey government authorised tenancy deposit protection scheme.
The aims of the new law
The new legislation is designed to safeguard the tenant's deposit and ensure they get it back at the end of the tenancy, provided they have met the terms of their tenancy agreement. Deposit protection aims to help improve standards in the rental sector.
Letting or managing agent's membership
Landlords or managing agents, can set up a membership with mydeposits to protect and manage deposits. Landlords should check with their agent who is responsible for handing over deposit money to the scheme.
Which deposits need protecting?
The new law applies to all new, renewed or varied tenancy agreements from 2 November 2015. You can also voluntarily protect your tenant's deposit in the scheme even if you have a tenancy that is not yet due for renewal.
How do I protect a deposit?
You have 30 working days from receiving the deposit money to lodge it within a scheme. It's an offence not to protect your tenant's deposit and you could have to pay a fine of up to £2,000.
Administration fee for protecting
It's free to join mydeposits Jersey. They will charge an admin fee of £20 plus GST (£21) to protect the deposit, but this is taken out of the tenant's deposit when the deposit is protected.
Protecting the deposit
The deposit will be placed in a regulated bank. It's held in an account until it is due to be repaid at the end of the tenancy. The deposit is safeguarded in the event of bank failure. Once the deposit is protected they will send confirmation to Landlord/Agent and the tenant, including the deposit amount paid in, how to get the deposit back and what to do if there's a dispute over the deposit.
Returning the deposit
Either the landlord or tenant can apply to mydeposits to release the deposit at the end of the tenancy. They will return it in five working days once both landlord and tenant have authorised its release.
Disputes over the return of the deposit
mydeposits offers a free dispute resolution service if there is a disagreement about how much deposit money should be returned at the end of a tenancy. The case can also be heard by the Petty Debts Court.
Further information for landlords and tenants can be found on mydepositsjersey.je .