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Tenancy Deposit Scheme: The Options Available
From 6th April 2007 all deposits taken by landlords must be safeguarded by one of three Government approved schemes. Landlords can choose which scheme they wish to use and must safeguard each deposit and inform the tenant which scheme has been used within 14 days of receiving the deposit. The Government has awarded contracts to three companies to run its tenancy deposit schemes.
This guide is designed to inform you of the options available to you.
RLA advice in a nutshell
Avoid deposits OF LESS THAN £600 - or use the Government Custodial Scheme (Option2)
- If you must take a deposit, look at the RLA backed TDSL (Option 3)
- Make sure your inventory is accurate and signed by yourself and the tenant. (For more information and advice on inventories, click here)
- Use the correct AST agreement – RLA has new versions. You must issue a “Prescribed Form” also.
- Read our Tenancy Deposit Scheme: Information for Landlords
Deposit Protection Scheme (Free to Use)
The Deposit Protection Scheme is managed by Computershare who have been running the same scheme in Australia since 1999. It is provided free of charge and is funded entirely by the interest earned from deposits held in the scheme.
For further information on the Deposit Protection Scheme (DPS) or to register/submit a deposit click here
The importance of Inventories and Conditions Schedules, click here
Do not take deposits
The majority of landlords in the UK rarely encounter the need to hold onto some or all of the deposit, which poses the question “do you really need to take deposits?”
If you wish to avoid the cost and beuraucracy of entering any of the schemes, there are some suggestions on what can be done.
To see these suggestions, click here
The Tenancy Deposit Scheme (TDS)
The Tenancy Deposit Scheme is an insurance backed deposit protection and dispute resolution service run by the Dispute Service and builds on a scheme that has been running since 2003. The new scheme allows landlords and agents to hold onto deposits. There is an annual fee per property for landlords and a one off annual fee for letting agents.
For further information on The Tenancy Deposit Scheme (TDS) or to register/submit a deposit click here
The importance of Inventories and Conditions Schedules, click here
My Deposits
Tenancy Deposit Solutions is an insurance backed deposit protection scheme and allows landlords (either directly or through an agent) to hold deposits. This service requires landlords to pay a joining fee plus an insurance premium per deposit and an annual renewal fee.
In conjunction with TDSL, the RLA can offer members entry into this scheme at a subsidised rate.
For further information on Tenancy Deposit Solutions Ltd (TDSL) or to register/submit a deposit, click here
The importance of Inventories and Conditions Schedules, click here
Still don't know what to do?
check out the RLA's advice by clicking here
