Tenancy Deposit Scheme
Under the provisions of the Housing Act 2004 every Landlord or Letting Agent that takes a deposit for an Assured Shorthold Tenancy in England and Wales must join a Tenancy Deposit Scheme. The new regulations came into effect from April 6, 2007.
The tenant pays over the deposit (commonly one months’ rent) in the usual way when the Tenancy Agreement is signed. The Landlord or Letting Agency has 14 days from the commencement of the tenancy to provide the tenant with details of the scheme that they are using (known as the prescribed information). If there is no dispute at the end of the tenancy the deposit will be returned to the two parties as agreed. If a dispute has arisen then the parties will be invited to make use of the Alternative Dispute Resolution process that is provided free within the scheme. Should the parties opt for Alternative Dispute Resolution they will be bound by its decision with no redress to the courts.
The above scheme highlights the importance of a professionally compiled inventory at the beginning of a tenancy whereby both landlord and tenant agree upon the contents and condition of the property. This ensures that the report is impartial and unbiased and provides peace of mind for both tenant and landlord.
The Deposit Protection Service (The DPS)
The DPS is a custodial deposit protection scheme which is free to use and open to all Landlords and Letting Agents. The service is funded entirely from the interest earned from deposits held. Landlords and Letting Agents will be able to register and make transactions online.
For more information, visit the following website: http://www.depositprotection.com or telephone 0870 707 1 707.
Tenancy Deposit Solutions Ltd (TDSL)
TDSL is a partnership between the National Landlords Association and Hamilton Fraser Insurance. This insurance-based tenancy deposit protection scheme enables landlords, either directly or through agents, to hold deposits. Letting agents can also join the scheme.
For more information, visit the following website: http://www.mydeposits.co.uk/ or telephone 0871 703 0552
The Tenancy Deposit Scheme (TDS)
TDS is an insurance-backed deposit protection and dispute resolution scheme run by The Dispute Service that builds on a scheme established in 2003 to provide dispute resolution and complaints handling for the lettings industry. The new scheme enables letting agents and landlords to hold deposits.
For more information, visit the following website: http://www.thedisputeservice.co.uk/ or call 0845 226 7837