Tenancy Deposit Scheme
Tenancy Deposit Scheme
Tenancy Deposit Scheme
Information and help for landlords
A scheme open to all Landlords and Agents concerned with the letting of Residential Property
The Tenancy Deposit Scheme has been established under the Housing Act 2004. It requires landlords to register details of the start and end of all Assured Shorthold Tenancies on which they take a deposit. The Dispute Service (TDS) runs this particular scheme and is required to supply summarised details of all tenancies to [the Department of] Communities and Local Government (CLG).
The Tenancy Deposit Scheme has been set up to service three principle objectives:
1 Protect deposits through the tenancy
2 Ensure the return of the deposit promptly at the end of the tenancy, where there is no dispute about the deposit
3 Where there is a dispute about the deposit at the end of the tenancy, ensure it is dealt with fairly and quickly by the Independent Complaints Examiner (ICE)
What are Tenancy Deposit Schemes?
The schemes allow tenants to get all or part of their deposit back when they are entitled to it and encourage tenants and landlords to make a clear agreement from the start on the condition of the property.
The schemes:
- allow tenants to get all or part of their deposit back when they are entitled to it
- make any disputes easier to resolve
- encourage tenants and landlords to make a clear agreement from the start on the condition of the property
There are two types of tenancy deposit protection scheme available for landlords and letting agents. All schemes provide a free dispute resolution service.
Insurance-based schemes
- the tenant pays the deposit to the landlord
- the landlord retains the deposit and pays a premium to the insurer - the key difference to the custodial scheme
Within 14 days of receiving a deposit:
The landlord or agent must give the tenant the details about how their deposit is protected including:
- the contact details of the tenancy deposit scheme selected
- the landlord or agent’s contact details
- how to apply for the release of the deposit
- information explaining the purpose of the deposit
- what to do if there is a dispute about the deposit
At the end of the tenancy:
- if an agreement is reached about how the deposit should be divided, the landlord or agent returns all or some of the deposit
- if there is a dispute, the landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved
- if for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it
Custodial schemes
- the tenant pays the deposit to the landlord or agent
- the landlord or agent then pays the deposit into the scheme
Within 14 days of receiving a deposit:
The landlord or agent must give the tenant the details about how their deposit is protected including:
- the contact details of the tenancy deposit scheme selected
- the landlord or agent’s contact details
- how to apply for the release of the deposit
- information explaining the purpose of the deposit
- what to do if there is a dispute about the deposit
At the end of the tenancy:
- if an agreement is reached about how the deposit should be divided, the scheme will return the deposit, divided in the way agreed by both parties
- if there is a dispute, the scheme will hold the deposit until the dispute resolution service or courts decide what is fair
The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will be used to offer interest to the tenant, or landlord if the tenant isn’t entitled to it.
In addition to protecting Deposits within fourteen days of receipt, Landlords/ Lettings Agents must ensure that they comply with The Housing (Tenancy Deposits) (Prescribed Information) Order 2007.
The DPS cannot do this for Landlords, but have produced a Prescribed Information template
for information purposes only.
You can use this document as a template but it is your responsibility to ensure that it is correctly completed and served on the Tenant(s) within fourteen days of receiving the Deposit. You must ensure that you give the Tenant(s) an opportunity to sign the Prescribed Information by way of confirmation that its contents are correct.
