Deposit Protection Regulations
Wednesday 7th March 2018
Tenancy Deposit Protection was first introduced in 2007. It is a legal requirement for all Assured Shorthold Tenancies to have their deposit protected by a governing body. This is so that all Tenants and Landlords are treated fairly at the end of the tenancy.
Your Landlord has a legal requirement to insure your deposit within the first 30 days of the start of your tenancy.
This is a vital piece of legislation which works very closely with a professionally constructed inventory check-in and check-out report. Without these documents, it would be difficult for a Landlord or Tenant to prove/make any claims on any disrepairs/discrepancies if they were not highlighted by an independent inventory company.
Should there not be an inventory check-in report compiled prior to the start of the tenancy and regardless of the circumstances relating to any discrepancies at the end of the tenancy, the Tenant will receive the deposit back in full. Therefore, in order to protect the interest of both parties, a Landlord or Agent must ensure that there is an inventory and check-out prepared for the tenancy in question. Should there be a dispute or you are not able to reach an agreement with your Landlord or Tenant, you can file a dispute with the governing body that is protecting your deposit. The Dispute Resolution service/arbitrator will be used to finalise the dispute.
There are a choice of two different schemes that your Landlord can choose when protecting your deposit, these are Custodial or Insured.
Custodial: Your Landlord or Letting Agent will transfer the deposit amount to the chosen Deposit Scheme. The deposit will be released once the tenancy has ended and that both the Landlord and Tenant have come to an agreement on the deductions (if any).
Insured: Your Landlord or Letting Agent will hold onto your deposit for the duration of the tenancy. It would then me your Landlord or Letting Agents responsibility to release the deposit back to you at the end of the tenancy.
There are Three Approved Governing bodies which a Landlord or Letting Agent can choose to use when protecting your deposit. These are as follows:
- Tenancy Deposit Schemes (TDS)
- Deposit Protection Service (DPS)
Once a deposit has been protected, your Landlord or Letting agent must provide you with a certificate confirming that that your deposit has been protected.
At the end of the tenancy, your Landlord or Lettings Agent has 10 days to come back to you with any feedback on disrepairs or discrepancies highlighted on the check-out report (if any).
Should there not be a dispute or any monies to be deducted, the deposit should be returned to the Tenant within 21 days.