Tenancy Deposit - Bare Contract

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M
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I am just about to let out a property through letting agent with annual rental over 25,000. However the tenants do not want to lodge their deposit with the ARLA letting agent, and would like it placed in a Govt tenancy deposit protection scheme. But this cannot be done because it is not an AST with rental under 25K. They do not mind if we hold the deposit as landlords but are looking for some protection. Any ideas? My only thought was to possibly put a clause in the contract that landlords hold deposit and then if dispute at end of tenancy go to a arbitration service.
25/11/2009 00:00

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