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Deposit protection for tenants comes into force

02 November 2015

​From today (Monday 2 November), landlords and letting agents are legally required to protect their tenants’ deposits by placing them in the States’ approved tenancy deposit scheme, mydeposits Jersey.

Under the new law, all landlords and agents that take a deposit from their tenant on a new, renewed or varied tenancy agreement must transfer the money to mydeposits within 30 working days of receiving it. Landlords and agents who fail to comply could be fined up to £2,000.

The legislation, which was announced earlier this year, is part of series of initiatives designed to improve the rental sector in Jersey. Deposit protection aims to give tenants greater confidence that their deposit money is being held securely and will be repaid smoothly at the end of an agreement. It’s also expected to reduce the number of deposit-related issues between landlords and tenants.

Housing Minister, Deputy Anne Pryke, said: “The States have been working for a number of years to strengthen the laws around renting in Jersey I am delighted that all tenants’ deposits will now also have greater legal protection.

“However, I would like to remind landlords that they are legally obliged to protect their tenant’s deposit when they create a new lease or renew or vary an existing lease, and that they should register with mydeposits as soon as possible.”

Chief Executive Officer of mydeposits Jersey, Eddie Hooker, said: “Today marks the start of improved landlord and tenant relationships and a rental sector where tenants are better protected. Deposit protection has vastly improved the UK’s rental market by raising standards and creating a fairer and more transparent way to manage deposits. We’re delighted to support Jersey’s government and help achieve its aims.”

Landlords and letting agents can register and protect their tenant’s deposits online or by contacting mydeposits by phone. A drop-in service for face-to-face advice is also available for Islanders at the Community Saving Charity offices on Commercial Street in St Helier.

More advice and support is available for landlords, agents and tenants on the mydeposits website.

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