Tenancy Deposit Scheme
From 6th April 2007, all deposits taken by landlords for assured short hold tenancies in England and Wales (this covers the vast majorities of tenancies), must be protected by a Tenancy Deposit Resolution service. The new scheme has been introduced to ensure good practice in deposit handling and to assist with the resolution of disputes by having an Alternative Dispute Resolution service (ADR).
The Tenancy Deposit Scheme will also encourage Tenants and Landlords to have in place, from the outset, clear agreement on the condition of the property through best practice, such as the use of inventories which can again be arranged on behalf of the landlord.
Landlords will be able to choose between either the custodial or insurance schemes. Both of these will be run by independent third providers. These schemes will be able to help resolve disputes and, in simple terms, all landlords who take deposits will have to join one or the other scheme. If they don’t, they risk having to pay a penalty of three times the deposit to the tenant.
Details about the three scheme administrators, who were awarded contracts, and how they will operate, can be found at the following websites.
For the Custodial Scheme: www.depositprotection.com
For the Insurance based scheme backed by the National Landlords Association: www.mydeposits.co.uk
We are happy to arrange for the Tenancy Deposit to be registered on your behalf. Please click the following link for further details of the services we offer to landlords or equally to discuss your own specific requirements please see our contact details.