By Martyn Baudains
It was announced that Environment & Infrastructure is expected to set out plans for a new deposit protection scheme before the end of the year. The announcement follows news that a local estate agent has ceased trading leaving some tenants and landlords uncertain of their position with regards to rents and deposits that were being held by that agent.
The proposal is likely to be that Guernsey should introduce a scheme which is similar, if not identical, to the scheme already in place in Jersey. A landlord taking a rent deposit must enter into an agreement with the States appointed administrator – in Jersey called “mydeposits” – and to place any deposit monies with them within 30 days of the commencement of the lease. Any landlord failing to comply risks being fined. The scheme applies to leases of self-contained dwellings with a lease term of 9 years or less, or weekly or monthly tenancies made after the law came into force.