phone: 01288 353542
From 2007, the Tenancy Deposit Scheme (‘TDS’) has been a Government backed scheme where the tenants deposit is placed within either a Free Custodial Administered Account or an Insurance Scheme where the landlord holds the deposit but pays a premium as 'insurance' to pay back the deposit.
As a landlord, you must, within 14 days give the tenant details on how the money is protected including:
This avoids a conflict of interest at the end of the tenancy as both the landlord and tenant must agree what is fair wear and tear, what is negligent wear and tear and what is allowable under the terms of agreement.
The deposit is handed to a Government backed, custodial third party and held in a safe bank account.
At the end of the tenancy, if there is a dispute, the third party will hold the deposit until agreement by the landlord/tenant or by the court.
It is free as any interest earned will pay for the running of the scheme and any extra will be paid back to either the landlord or tenant.
The deposit is paid to the landlord.
The landlord retains the deposit and pays a premium to the insurer.
The schemes available are:
My Deposits - www.mydeposits.co.uk
Tenancy Deposit Scheme - www.tds.gb.com
Deposit Protection Service – www.depositprotection.com