The Tenancy Deposit Scheme has been applied under the Housing Act 2004 and was introduced on the 6th of April 2007. The main aim the scheme was to improve standards across multiple tenancy locations and to improve on safety legislation. The Tenancy Deposit Scheme is mandatory for all landlords and letting agents based in England and Wales that hold tenancy deposits that have been taken from a tenant that are under the Assured Short hold Tenancy Agreement (AST) after the introduction date.
The Tenancy Deposit Scheme is a like an insurance policy for the tenant in that the scheme protect the tenants deposit securely with the added satisfaction of knowing that a resolution process can be applied upon any disputes made. This came around due to clients disputing that their deposit had been taken away under unfair conditions. The three main conditions that the Tenancy Deposit scheme aims to cover are
1. Protect the deposit throughout the term of the tenancy in accordance with the tenancy scheme.
2. Prompt return of the deposit at the end of the tenancy contract when there is no dispute required.
3. Deal with any disputes at the end of the tenancy agreement. This will be dealt with by the Independent Complaints Examiner. This will ensure that the dispute is handles fairly, quickly and is a smooth process for both parties involved
The way the scheme works on principal is the same across all schemes. Tenants will pay the deposit to the landlord. The landlord will then hold it be aware that letting agents by law are no longer able to hold deposit. The landlord then has the responsibility of informing the schemes administrating body so that protection will be applied to the tenant’s deposit. When the tenancy contract ends both the landlord and the tenant will decide how the deposit will be handled. If the tenant has any disputes over the deposit the tenant is required to complain the schemes administrating body which will inform the landlord who will in turn have to reply within a set period of time. The dispute is then handles by the scheme administrator until resolution has occurred. The money in dispute will be applied to both parties fairly according to the agreements in place. If a settlement can’t be agreed after this process then the tenant will need to apply for a court order. The security deposit is not required to be given to the Tenancy Deposit Scheme handlers.
If a landlord or letting agent does not apply a Tenancy Deposit Scheme they are breaking the law. If they do not comply with this scheme then they can be taken to court and fines may be imposed.
There are three main places to go and get cover for the protection of tenancy deposits. They are
1. www.td.gb.com also known as The Tenancy Deposit Scheme.
2. www.depositprotection.com also known as the Deposit Protection Service.
3. www.mydeposits.co.uk also known as Tenancy Deposit Solution Ltd.
As with most schemes there are costs involved. The initial signing is free no matter what scheme you may choose to use. On top of that you will be required to pay a yearly fee. These costs vary and do change over time.
The Tenancy Deposit Scheme is a like an insurance policy for the tenant in that the scheme protect the tenants deposit securely with the added satisfaction of knowing that a resolution process can be applied upon any disputes made. This came around due to clients disputing that their deposit had been taken away under unfair conditions. The three main conditions that the Tenancy Deposit scheme aims to cover are
1. Protect the deposit throughout the term of the tenancy in accordance with the tenancy scheme.
2. Prompt return of the deposit at the end of the tenancy contract when there is no dispute required.
3. Deal with any disputes at the end of the tenancy agreement. This will be dealt with by the Independent Complaints Examiner. This will ensure that the dispute is handles fairly, quickly and is a smooth process for both parties involved
The way the scheme works on principal is the same across all schemes. Tenants will pay the deposit to the landlord. The landlord will then hold it be aware that letting agents by law are no longer able to hold deposit. The landlord then has the responsibility of informing the schemes administrating body so that protection will be applied to the tenant’s deposit. When the tenancy contract ends both the landlord and the tenant will decide how the deposit will be handled. If the tenant has any disputes over the deposit the tenant is required to complain the schemes administrating body which will inform the landlord who will in turn have to reply within a set period of time. The dispute is then handles by the scheme administrator until resolution has occurred. The money in dispute will be applied to both parties fairly according to the agreements in place. If a settlement can’t be agreed after this process then the tenant will need to apply for a court order. The security deposit is not required to be given to the Tenancy Deposit Scheme handlers.
If a landlord or letting agent does not apply a Tenancy Deposit Scheme they are breaking the law. If they do not comply with this scheme then they can be taken to court and fines may be imposed.
There are three main places to go and get cover for the protection of tenancy deposits. They are
1. www.td.gb.com also known as The Tenancy Deposit Scheme.
2. www.depositprotection.com also known as the Deposit Protection Service.
3. www.mydeposits.co.uk also known as Tenancy Deposit Solution Ltd.
As with most schemes there are costs involved. The initial signing is free no matter what scheme you may choose to use. On top of that you will be required to pay a yearly fee. These costs vary and do change over time.
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