Tenancy Deposit Scheme
What is the TDS Tenancy deposit scheme?
The tenancy deposit scheme came into effect on the 6th April 2007 all deposits taken from an Assured short hold tenancy (AST) after this date must be covered by the scheme.
The scheme encourages tenants and Landlords to make a clear agreement from the start of the tenancy on the contents and the condition of the property. This is done by providing a detailed inventory and a schedule of condition at the start and at the end of the tenancy. This should be checked by a Professional Independent person such as an Inventory Clerk. This then ensures that the report is impartial and unbiased and provides peace of mind for the Landlord and the tenant.
In the event that there is a dispute at the end of the tenancy and to avoid going to court each scheme will be supported by an alternative dispute resolution service aiming to make disputes quick and cheap to resolve.
Who are running the schemes?
The tenancy deposit scheme (TDS)
IIt is an Insurance packaged insurance protection dispute resolution scheme run by the dispute service. It has been established for over 6 years to provide dispute resolution and complaints handling within the lettings sector including a voluntary deposit scheme for regulated agents within TDS. It is designed for letting agents to continue to hold the deposits Landlords can also join the scheme to if they so wish. To find out more www.tds.gb.com
The Deposit Protection Service (DPS)
The only custodial deposit protection scheme it is completely free to use and available to all professional Landlords and letting agents. The service is funded entirely from the interest that is earned from deposits held. Landlords and letting agents will be able to register and make transactions on line. The scheme will be supported by a dedicated call handling centre and an independent dispute resolution service. To find out more www.depositprotection.com
Tenancy Deposit Solutions Ltd (TDSL)
The scheme works with Hamilton Fraser Insurance company and National Inventory Clerks Association (NLA). The scheme has been running since 2006 and is designed as an Insurance Based Tenancy Deposit Protection Scheme specifically designed to enable Landlords and agents to hold deposits themselves. Another option that they have is a custodial scheme requiring the landlord to hand over the deposit to the scheme administrator. To find out more www.mydeposits.co.uk


