The Tenancy Deposit Scheme (TDS) was asked what happens if you serve your Prescribed Information too early…
As a landlord or letting agent, there’s a time-critical checklist you need to follow when dealing with tenancy deposits. From when you need to register the deposit to when you serve the Prescribed Information (PI), these deadlines are in place to keep you legally compliant.
But what happens if you go the other way and serve your PI too early? Sandy Bastin, Head of Adjudication Services at Tenancy Deposit Scheme (TDS) explains why serving the PI to tenants too early could cause compliance issues…
What is Prescribed Information (PI)?
If you’re new to private lettings, the Prescribed Information (PI) is given to tenants after they have paid the deposit to make them aware of their rights during and at the end of the tenancy regarding their deposit.
Under the Housing Act 2004, it’s a legal requirement for the landlord to give the PI to the tenant and anyone who paid the deposit on the tenant’s behalf (a Relevant Person).
The PI comprises a leaflet entitled ‘What is the Tenancy Deposit Scheme?’. This explains the relevant sections of the Housing Act 2004 (sections 212 to 215, and Schedule 10) which must also accompany the leaflet.
The leaflet also includes details about the procedures that apply under the deposit protection scheme regarding repayments, changes to tenancy and disputes.
When must you serve the PI to tenants?
The Act states that, as the landlord, you are legally required to serve the PI to the tenant within 30 days of receiving the deposit.
It must be served to the tenant with the scheme leaflet, and provide the tenant with the opportunity to sign the last page of the Prescribed Information.
Since the time limit for serving the Prescribed Information runs from when part or all of the deposit has been received, giving it to the tenant before this is not recommended as it won’t comply with the legislation – even if you thought you were being efficient.
The bottom line is that if you serve the PI too early, it won’t be valid. If you don’t give it to the tenant within the correct timescale, you will be in breach of the Housing Act 2004 which could expose you and/or the deposit holder to legal action for compensation by the tenant.
To be on the safe side, you should keep a record of when the documents were given to the tenants to show they were served within the designated time.
The Tenancy Deposit Scheme (TDS) is one of The Letting Partnership’s trusted partners. For more details of who we work with see our Working in Partnership page
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