The Tenancy Deposit Scheme TDS – UK Landlords

The particular Tenancy Deposit Scheme (TDS) bought about by the 04 Housing Act introduced from the 6th April 2007 an important system for all assured shorthold tenancy deposits. know more about The benefits of professional End of Tenancy Cleaning Services

No longer will be landlords able to hold deposits independently. Instead they must choose from a:

* Custodial scheme or

* Insurance program (there are two)

The Custodial Scheme

The custodial scheme is free to use. Its’ running costs simply being financed using part of the interest generated from the deposit charges it holds. It involves the landlord having to hand over the downpayment monies to a third party organization called the Deposit Protection Program (DPS).

This company is managed by Computershare Ltd who for the last 8 years have run a similar scheme during the state of Victoria, Australia. The scheme requires owners to pay to DPS either through a paper based payment or simply online the entire deposit amount taken on the grant of your tenancy.

How does it work?

* The tenant gives the landlord or letting agent their deposit.

* Typically the landlord/agent pays the deposit into The DPS within fourteen days of receiving it.

* Following receipt of the put in, The DPS will provide confirmation and details of the safeguards scheme being used to both the landlord/agent and the tenant.

5. At the end of the tenancy, the landlord/agent and the tenant come to an agreement repayment of the deposit and inform the scheme moderators. The deposit repayment, divided accordingly and including any sort of interest accrued, will be initiated to each party within 20 days.

* If there is a dispute, The DPS directors return any undisputed amount (plus interest) to the applicable party, but hold the disputed portion until the Alternative Argue Resolution (ADR) service or the courts decide what is rational.

Example 1

A tenant pays a deposit of £700.

At the end of the tenancy, the landlord says he wishes to help keep £50 to pay for cleaning the flat.

The tenant says.
£650 (plus interest) is returned to the tenant and also £50 (plus interest) is returned to the landlord.

Case 2

A tenant pays a deposit of £1, 000.

At the end of the tenancy, the landlord says he wishes to hold £200 to pay for replacing damaged furniture.

The tenant disagrees, claiming the furniture was damaged before they migrated in.

Both agree to use the Alternative Dispute Resolution (ADR) service.
£800 (plus interest) is returned to the renter, but the disputed £200 (plus interest) is safeguarded so that the dispute is settled by the ADR service administrator, along with repaid according to the decision.

 

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