As of Monday , UK agency mydeposits has been appointed by the Housing Department to hold tenants’ deposits in a third party bank account for the duration of their tenure.
Landlords will be required to transfer all deposits into the bank account within 30 days of their receipt or they could face a £2,000 penalty.
For more information about the new tenancy deposit scheme visit mydepositsjersey.je
Tenants will pay a £21 administration fee for the scheme, which will be deducted when the deposit is returned, and any disputes over the return of deposits will be settled by mydeposits free of charge.
The Jersey Landlords Association has criticised the new scheme, claiming that there are only a small number of ‘rogue landlords’ in the Island and the unnecessary red tape is being created.
It has also said that because the deposits will be transferred to a UK bank account up to £20 million will be lost from the Jersey economy.
But mydeposits chief executive Eddie Hooker says that the new scheme will help to improve trust and communication between landlords and tenants, which will have the knock-on effect of improving the standard of housing in Jersey.
He said: ‘The new scheme will lift the veil of suspicion between landlords and tenants.
‘It will get the issue of deposit disputes off the table and improve communication between them.
‘The tenants will no longer be worrying about where their deposits are and about getting them back.
‘This will help get other issues resolved, such as with damp and mould, because landlords and tenants will have to talk to each other.
‘The landlord will better understand their obligations to the tenant and vice versa, and this will improve standards.
‘The new scheme will professionalise Jersey’s rental market.’
He added: ‘Landlords need to understand that tenants are not just a commodity – they may be living in the landlord’s house but it is still their home.’
Mr Hooker said that a UK bank account was being used to hold the deposits because adequate protection could not be provided in Jersey in case the bank collapsed.
He said: ‘The intention was always to hold the money on the Island but the Jersey financial compensation scheme would not protect the deposits if the bank went down.
He added that any interest received on the deposits would be used to pay for the scheme and would not end up in the Jersey economy even if the bank account were held locally.
Mr Hooker also said that there would not be excessive red tape created by the scheme and the use of mydeposits for mediation rather than the Petty Debts Court could help streamline the disputes process.
Tenancy Deposit Protection has been introduced to:
- Help to reduce the number of unfairly held deposits,
- Ensure that deposits are kept securely, in a segregated bank account,
- Ensure that deposits are returned quickly and fairly at the end of the tenancy,
- Help to improve the rental sector in Jersey.
How do landlords and agents comply?
It’s important that landlords and letting agents comply with the new legislation as those who fail to lodge the deposit with mydeposits Jersey within 30 working days of receiving it will risk facing a level 3 fine of £2,000.
It’s quick and simple to comply with mydeposits Jersey and the entire process can be completed in just a few simple steps but in nutshell you need to:
- Join mydeposits Jersey (available from 1 October 2015)
- Lodge your tenants deposit with us using your online account (available from 2 November 2015)
- We’ll then confirm the protection, safeguard the deposit and let your tenant know that it has been protected
- At the end of the tenancy, we’ll release the deposit when both parties have authorised it
- If there any disputes over the deposit return at the end of the tenancy then our free dispute resolution service is there to help
Tenant fees
