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 Short hold 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).
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.
• 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 agents 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