Tenancy Deposit Scheme

The Three TDS (Tenancy Deposit Schemes)

The Deposit Protection Services (DPS)

This is the only custodial deposit scheme. In order to use this scheme you must hand your deposit to the government, to hold for the duration of the tenancy. Upon completion of the tenancy the Landlord and Tenant must come to an agreement about what will happen to the deposit. If no agreement is met by the two parties then the full deposit will be kept until a decision is made.

Tenancy Deposit Solutions Ltd (TDSL)

An insurance based scheme set up by the nation landlords association, the scheme requires you to become a member by paying a fee and subsequent deposits required for each individual property you may have. This scheme allows the Landlord to hold on to the deposit. Any dispute that may arise, will be supported by the insurance policy, they will insure the entitled deposit will be refunded to the tenant and the insurers will recover the contested amount from the landlord.

The Tenancy Deposit Scheme (TDS)

2. This scheme is a partnership of three bodies including the NAEA (National association of Estate agents), ARLA( The association of residential lettings agents, and the RICS( The royal institute of charted surveyors, and is administrated by The dispute service Ltd. This deposit scheme can hold landlords deposit, at no additional cost if they manage the property. They would be responsible for all of the Landlords obligations to inform the tenant of how to recover their deposits.
Contact number: 0845 226 7837 or visit www.tds.gb.com

If the Landlord has chosen either of the first two options, they are held fully responsible for informing the tenant about how their deposit is being protected, including the contact details of the tenancy deposit scheme, and how to apply for the release of the deposit.

If as a Landlord you feel that you have a claim on the deposit at the end of the tenancy then the trouble of providing the evidence is upon you. This means that unless you have a professional inventory agreed and signed by the tenant, with photographs from the beginning and after the tenancy your claim will amount to nothing.

IF YOU DO NOT SECURE YOUR TENANCY DEPOSIT WITHIN 14 DAYS THE TENANT CAN APPLY TO THE LOCAL COUNTY COURT AND THE COURT CAN ORDER THE LANDLORD TO PAY 3 TIMES THE DEPOSIT AMOUNT TO THE TENANT. IN ADDITION TO THE PAYOUT THE LANDLORD WILL BE REQUIRED TO PAY THE SECTION 21 NOTICE (NOTICE TO END THE TENANCY, SERVED BY THE LANDLORD) WILL ALSO BE INVALID UNLESS THE DEPOSIT IS PROTECTED.