|Tenancy Deposit Scheme|
What is Tenancy Deposit Protection?
On the 6th April 2007 it became law that any dilapidation deposit taken by landlords and lettings agents for Assured Shorthold Tenancies must be protected by a Tenancy Deposit Scheme.
The schemes are a fair and impartial way for tenants to get all or part of their dilapidation deposit back when they are entitled to it. The scheme also encourages tenants and landlords to agree on and make clear the condition of the property at the start of the tenancy, often incorporating the use of an inventory as an agreed report between both parties.
What do the schemes do?
What types of scheme are there?
There are currently two choice of scheme:
Insurance based scheme
This is where the landlord wishes to personally hold the tenant's deposit for the duration of the tenancy. The landlord must register to become a member of an approved scheme and take out an insurance policy against the deposit.
Government Custodial Scheme
This is where the landlord or agent pay the tenant's deposit into the government-run scheme rather than personally hold the deposit. The deposit it held by the scheme, run as the Deposit Protection Service (DPS), for the length of the tenancy and the release of the deposit is managed by the scheme.
The DPS is the only custodial scheme available and is free to use.
Both schemes run a dispute resolution service should there be any disagreement at the expiration of the tenancy.
What scheme does Turner Lane use?
Turner Lane predominantly uses the government custodial scheme, Deposit Protection Service, to protect our tenant's deposits. The scheme is run online and each deposit is given a unique ID number which tenants and landlords can track their deposit when the time comes for it to be released.
In the few cases that the landlord does wish to personally hold the deposit they must firstly show us evidence of joining an approved scheme before we will pass on the deposit to them.
All of our Agreed Shorthold Tenancies incorporate the use of a full and detailed inventory report.