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All deposits taken for an Assured Shorthold Tenancy after
April 2007 must be covered by scheme.
The
Tenants Deposit Scheme encourages tenants and landlords to make a clear agreement from the start of the tenancy, on the contents
and condition of the property. This is done by providing a detailed inventory and a schedule of condition, at the start and
at the end of the tenancy. This should be checked and verified by a professional, independent inventory clerk, which means
that the report is impartial and provides peace of mind for both landlord and tenant.
In the event of a dispute
at the end of the tenancy and to avoid costly court proceedings, each scheme will be supported by an alternative dispute resolution
service, whose aim is to make disputes faster and cheaper to resolve.
Who operates these schemes?
The Government awarded
contracts to three companies to run its Tenancy Deposit Schemes .
The Deposit Protection Service (The DPS) - the
only custodial deposit protection scheme which is free to use and open to all landlords and letting agents. The service
is funded from the interest earned from deposits held and landlords and letting agents will be able to register and carry
out transactions online. The scheme is supported by a dedicated call centre and an independent dispute resolution service.
For more information, visit www.depositprotection.comTenancy Deposit Solutions Ltd (TDSL) is a partnership
between the National Landlords Association and Hamilton Fraser Insurance. The insurance-based tenancy deposit protection scheme
is designed primarily to enable landlords to continue holding deposits. Agents can also join the scheme. For more information,
visit www.mydeposits.co.ukThe
Tenancy Deposit Scheme (TDS) is an insurance-backed deposit protection and dispute resolution scheme run by The Dispute Service.
It was established in 2003 to provide dispute resolution and complaints handling for the lettings industry, including a voluntary
deposit scheme for regulated agents, which TDS will now absorb. It is designed to enable letting agents to continue holding
deposits, although landlords can also join the scheme. For more information, visit www.tds.gb.com or call 0845 226 7837.
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