LANDLORD Assist, the nationwide tenant referencing and eviction firm, is advising landlords to check that their tenants’ deposits are protected by one of the three Government-approved Tenancy Deposit Protection schemes.

The warning comes following a report from the Tenancy Deposit Scheme which details that up to one million private sector tenants are believed to be missing out on deposit protection.

According to the report an average deposit of £1,000 for each tenancy is not secured by a Government-authorised scheme, equating to £1billion in total.

By law all rental deposits must be registered and safeguarded within an approved rental deposit scheme for the duration of the tenancy. If any other scheme is used, deposits are not protected by law.

The three approved schemes are: Deposit Protection Service (DPS) MyDeposits Tenancy Deposit Scheme (TDS) All deposits must be protected within 14 days of a landlord receiving the deposit. Tenants should then be provided with details of which scheme is protecting their deposit as well as information about how to apply to get the deposit back at the end of the tenancy and what to do if there is a dispute about the deposit.

Graham Kinnear, managing director at Landlord Assist, is concerned, however, that despite that legal requirement some landlords might be completely unaware tenancy deposit protection laws even exist.

He advises landlords to ask their letting agent or to contact Landlord Assist immediately should they have any doubts about their deposits being properly protected.

He said: "The latest figures are especially alarming, as the new laws have been in place since 2007.

“Landlords need to be reminded that deposit protection schemes don’t solely protect tenants’ rights but also support landlords who have reasonable ground for claiming deductions at the end of the tenancy for things such as damage and unpaid rent.

“We strongly urge landlords to check that their tenants' deposits are protected in one of the three authorised schemes.”

Stephen Parry, commercial director at Landlord Assist, reminds landlords that the penalties for not protecting tenants’ deposits are serious.

“It is evident that a number of landlords continue to fall foul of the legislation by not lodging their tenants’ deposits. Landlords need to be aware that this legislation is in place and the penalties for non-compliance are considerable.

“In fact, they may be ordered to repay three times the amount of the original deposit.

“The number of households renting privately has risen by over one million in the last five years and is set to continue to grow. It is, therefore, important that landlords understand their legal obligations.”