Tenancy deposit protection
     

Tenants - Helpful Information

Tenancy Deposit Protection

From 6 April 2007, all deposits taken by landlords or agents for Assured Shorthold Tenancies in England and Wales (this covers the vast majority of tenancies), must be protected by a tenancy deposit protection scheme. From this date, tenants should ask their landlord/agent about the details of the scheme when signing a new tenancy agreement. How does it work?

What are Tenancy Deposit Schemes?

There are two types of tenancy deposit protection scheme available for landlords and letting agents (insurance-based schemes and custodial schemes). All schemes provide a free dispute resolution service.
The schemes will 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.

The schemes will :

  • 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 agent’s 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
Custodial schemes
  • the tenant pays the deposit to the landlord or agent
  • the landlord or agent then pays the deposit into the 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 agent’s 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 scheme will return the deposit, divided in the way agreed by both parties
  • if there is a dispute, the scheme will hold the deposit until the dispute resolution service or courts decide what is fair
  • The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will be used to offer interest to the tenant, or landlord if the tenant isn’t entitled to it.

Since being established in 1994, we have thought carefully about the service we provide – the needs of not only our Landlords, but also our Tenants, and the problems that we all may face along the way.

Over the years we have changed as the market changes and evolved as technology moves forward, but the one basic principle is to exceed the expectations of the customer, both the landlord and the tenant.

So, we decided to ensure that we remain focused on our original principles.

  • We focus on the customers needs, letting and managing your homes
  • Our team of 18 in two offices are trained in their respective property management roles
  • Our aim is simple, but effective. We will do our utmost to achieve our objectives

Specialising only in letting and property management, we are able to focus on your needs, allowing us to change with the fast moving lettings market. Mixing house sales with letting homes is an unhealthy mix and over the past few years we have been passed complete letting departments from Estate Agents attempting to let and sell homes, a service that does not work. We do not sell houses. When you instruct us, you receive independent trained advice without bias, with a team of 20 lettings specialists covering all aspects of letting and managing your home.

We aim to provide peace of mind that their property is being managed, routine property visits are carried out, rent is collected and accounted to the landlord on a regular basis.  Emphasis is also placed on constantly updating our legal procedures, ensuring that the ever changing legislation is strictly adhered to.

Whilst recognising the important role that modern technology can play in property management, we firmly believe that our most valuable asset is our team, many of which have been with the company for several years and are experienced in their different fields with excellent local knowledge.  We place great value on this and combined with our cutting edge technology we believe we provide an unequalled service.

When tenants look to rent, it is no longer acceptable to place an advert in the local newsagents or by word of mouth. Tenants require the assurance that they are able to find a property quickly and with little fuss but most importantly from an agent they can trust and ensure that their deposit is safe and in the event of any problems, they will be dealt with promptly. They invariably want the protection that an agent can provide including their deposit being guaranteed safe and any property complying with all the required safety regulations. An agent offering the widest selection of properties provides the widest selection of tenants.