Tenancy Deposit Protection

posted: 14/03/2007

From 6 April 2007, all deposits taken by landlords and letting agents in relation to assured shorthold tenancies must be protected by a government-authorised tenancy deposit protection scheme.

You will be able to choose between two types of scheme: a single custodial scheme and two insurance-based schemes.

The three schemes will be operated by:
1. The Deposit Protection Service (DPS) - 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 to register and make transactions online. Paper forms will also be available should internet access be an issue. The scheme will be supported by a dedicated call centre and an independent dispute resolution service. For more information, visit www.depositprotection.com or call 0870 707 1 707

2. Tenancy Deposit Solutions Ltd (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 www.mydeposits.co.uk

3. The Tenancy Deposit Scheme (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 www.tds.gb.com or call 0845 226 7837.

More information can be found be found on the following webpages:-

www.direct.gov.uk/en/TenancyDeposit/index.htm

http://www.communities.gov.uk/index.asp?id=1152035

Remember - if you do not protect a tenant’s deposit you could be ordered to repay three times the amount to the tenant so find out how you can protect deposits and resolve disputes.