How Does the New Tenant's Deposit Scheme Work?
The Tenants Deposit scheme has been introduced to help resolve disputes over the return of a tenants deposit on quitting a property. The landlord must inform the tenant into which Government approved scheme the money has been placed.
There are two types of scheme.
The deposit is placed with a third party (the scheme provider) who also provides a resolution service should there be a dispute.
There are only 3 Government Approved Schemes
The Deposit Protection Service
The DPS is the only custodial deposit protection scheme, is free to use and open to all Landlords and Letting Agents. The service is funded entirely from the interest earned from deposits held. Landlords and Letting Agents will be able to register and make transactions online. Paper forms will also be available should internet access be an issue. The scheme will be supported by a dedicated call centre and an independent dispute resolution service.
For more information, visit the website below or telephone 0844 472 7000.
Tenancy Deposit Solutions Ltd (TDSL)
TDSL is a partnership between the National Landlords Association and Hamilton Fraser Insurance. This insurance-based tenancy deposit protection scheme enables landlords, either directly or through agents, to hold deposits. Letting agents can also join the scheme.
For more information, visit the website below or telephone 0871 703 0552.
The Tenancy Deposit Scheme (TDS)
TDS is an insurance-backed deposit protection and dispute resolution scheme run by The Dispute Service that builds on a scheme established in 2003 to provide dispute resolution and complaints handling for the lettings industry. The new scheme enables letting agents and landlords to hold deposits.
For more information, visit the website below or call 0845 226 7837.
It is up to the landlord into which scheme the deposit is placed
