There is not enough awareness of the Introduction of tenancy deposit protection rules on 6 April, leading independent letting agent Leaders has warned.

This is one of the most important changes to residential letting in the last 20 years and will affect all landlords who put new assured tenancy agreements after the start date, or renew existing tenancies, said the firm.

From 6 April, all landlords who take deposits from tenants - whether they let their property privately or through an agent - will be legally required to ensure the safekeeping of their tenant's deposit by joining a statutory tenancy deposit scheme. And they will have to provide tenants with details of how their deposits are being protected within 14 days of the start of the tenancy.

‘After decades of campaigning for more regulation in the industry, Leaders fully supports the intent behind the TDPS, which we hope will raise standards in the private rented sector to the benefit of tenants and landlords alike’, said Leaders managing director, Paul Weller. ‘However, it is important to be aware that just because a landlord or agent may be a member of a statutory deposit protection scheme – which are open to everyone without stipulating minimum standards - it does not necessarily mean that they understand or will comply with all the complex legislation governing letting, or that they will adhere to best practice.

‘For example, at the heart of the TDPS is the stipulation that the deposit cannot be released from the scheme at the end of the tenancy- to either the landlord, tenant or both - unless both parties agree. Yet unbelievably, the TDPS legislation does not actually require that an inventory be drawn up at the start of the tenancy, a document that we know from experience is essential to minimising the chances of a dispute over the deposit at the end of the tenancy. Without an accurate and detailed inventory, it will be impossible to agree whether the property has been left by the tenant in a reasonable condition at the end of the tenancy, and therefore to convince the scheme which party the deposit (or part of it) should be fairly released’.

The National Association of Estate Agents is advising any landlords or lettings agents who have not already decided how they will deal with deposits to do so now.

‘As of 6 April if you let a property under an assured shorthold tenancy agreement and take a deposit you have to be part of a Government authorised scheme. If you are not then you may be ordered to repay the deposit you hold, with the possibility of an additional fine. You may also be prevented from serving a Section 21 notice to evict your tenant if the need arises’, warned NAEA lettings expert Jan Bartlett.

‘The new legislation undoubtedly brings with it additional work. Sadly I have been contacted by a couple of lettings agents recently who are selling their businesses because the burden of red tape has become too much. Trying to avoid the legislation, however, is not the answer as you will eventually get found out. On the positive side, the rules aim to provide much needed protection for tenants and to resolve issues and disputes far more quickly than is done currently, which is certainly good news for all involved’.

Landlords who do not take deposits will not have to take part in the deposit protection schemes and will thereby avoid the administrative burden, cost (up to £95 for a single property) and uncertainty involved. Residential Landlord has launched the Tenant Guarantee Scheme – details are available on www.iguarantee.co.uk) which allows landlords to accept tenants without a deposit but with the benefit of insurance cover at no cost to themselves.