Tenants Guide to the tenancy deposit scheme
From the 6th April 2007 your landlord or letting agent must protect your deposit using one of the three Governmentapproved Tenancy deposit schemes. The reason for the changes are two fold. Firstly to ensure that if you are entitled toget your deposit back at the end of the tenancy you receive it promptly and secondly to encourage Landlords and tenantsto settle their disputes through alternative dispute resolution rather than the courts.At the start of the tenancyYou will still pay your deposit to your landlord or letting agent at the start of the tenancy in the normal way. Within 14days the Landlord or letting agent must provide you with certain prescribed information including:- Which of the three authorised schemes they are using- How to apply to get your deposit back at the end of the tenancy- An explanation of the purpose of the deposit- What to do if there is a disputeWhat to do if your landlord or letting agent doesn't provide you with the prescribed informationYou can apply to the county court to force your landlord to protect your deposit. If it is shown that your deposit has notbeen protected the court must order the landlord to repay you three times the deposit.Recording the condition of your rental proeprtyIt is expected that the new regulations will encourage more landlords to produce detailed inventories includingphotographs. The inventory acts as a record of the condition of the property at the start of the tenancy. If you are notprovided with an inventory you should request one from your landlord. If it is not forthcoming you would be wise toproduce your own photographic record and send a copy to the Landlord.At the end of the tenancyIf there is no dispute between you and your landlord or agent the deposit will be divided as per your agreement. The newregulations state that this must be done within 10 days of the tenancy ending.If a dispute arisesIf you cannot agree with your Landlord as to how much of your deposit should be withheld then the two parties have theright to go to alternative dispute resolution. This service is provided free by the scheme protecting your deposit.Who is running the schemes?Three companies have been authorised by the Government to run tenancy deposit schemes:The Deposit Protection Service (The DPS)The DPS is the only custodial deposit protection scheme, 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 toregister and make transactions online. Paper forms will also be available should internet access be an issue. Thescheme will be supported by a dedicated call centre and an independent dispute resolution service.Tenancy Deposit Solutions Ltd (TDSL)TDSL is a partnership between the National Landlords Association and Hamilton Fraser Insurance. This insurance-basedtenancy deposit protection scheme enables landlords, either directly or through agents, to hold deposits. Letting agentscan also join the scheme.The Tenancy Deposit Scheme (TDS)
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