tenancy deposit schemes

What is the Tenancy Deposit Scheme- and what are my options?

• This new legislation is for ALL Assured Shorthold Tenancies.
• Each landlord is required to join a Government-accredited tenancy deposit protection scheme.

What happens if you don't secure a tenant's deposit?

The Tenant can apply to the Court for an order seeking repayment of the deposit, or an order compelling compliance. If you have not protected the deposit, and fail to do so, the court must order you, the landlord, to pay the tenant a fine equivalent to three times the deposit, which must be paid by you within 14 days.

Also, you will lose your automatic right to regain possession of the property at the end of the tenancy, unless you have protected the deposit in a scheme and given the tenant information about how it is protected.

What determines an assured shorthold tenancy? 

• The tenant is an individual, not a company, charity or trust.
• The property is the tenant’s only or main (principal).
• The landlord is not a resident landlord.
• The rent is less than £25,000 per year.

Where to go from here?

There are two simple options to choose from;

• Sign up to our Property Management service and we’ll take care of everything for you, at no extra charge. Call us today, on 020 7328 3393 or email propertymangement@greene.co.uk , to get this simple process underway.
• Decide from one of the following three schemes (it is up to you to decide which one you want to join).

They are:
The Tenancy Deposit Scheme (TDS) – Insurance based scheme: http://www.tds.gb.com/
Either register online, or call 0845 226 7837 (costs involved).

The Deposit Protection Service (DPS) – Custodial and the only free scheme available. To register online http://www.depositprotection.com/ or call 0870 707 1707. This is the default option for all landlords and letting agents that do not wish, or are unable to join insurance based schemes to protect tenants’ deposits.

Tenancy Deposit Solutions Limited (TDSL)
This is also an insurance based scheme with costs involved. Available to register online http://www.mydeposits.co.uk/ or call 0871 703 0552.