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Andrews Online

Landlords Tenancy Deposit Protection

As a landlord of property(s) in England and Wales, from 6 April 2007, by law you must protect your Tenants rental deposits in a Tenancy Deposit Protection (TDP) scheme. This legislation is aimed at protecting Tenants deposits.

What Are Tenancy Deposit Protection (TDP) Schemes?

  • From 6 April 2007, it will become illegal for you to keep your Tenant’s deposit(s) in your personal or business accounts
  • By law all landlords who take deposits must now join a TDP scheme to safeguard the funds
  • TDP schemes are made up of independent bodies who protect deposits
  • TDP schemes also offer a faster, cheaper and all round better way to resolve disputes should they arise at the end of a Tenancy
  • Landlords, not Tenants will have the option to choose whether to safeguard the deposit in a custodial or an insurance based scheme

Insurance Based & Custodial TDP Schemes

There are 2 schemes where a Landlord can place Tenants deposits for the duration of a fixed term tenancy. Either in a Custodial scheme or an Insurance Based scheme.

Insurance Based Schemes

  • Andrews has joined the Insurance based scheme called The Tenancy Deposit Scheme which is run by The Dispute Service. The Dispute Service have been running the voluntary Tenancy Deposit Scheme for Residential Agents which has provided an Alternative Resolution Service for the last 2 years and Andrews have been members of this scheme from the outset. Andrews makes no charge to its Landlords to join this scheme and Andrews will also ensure the Landlords legal requirements with regard to informing the Tenant of the details of the scheme administrator are fulfilled on their behalf. Peace of mind for the Landlord
  • There is a second Insurance based scheme called Tenancy Deposits Solutions Ltd run jointly by National Landlords Association and Hamilton Fraser. A fee is payable by Landlords to join this scheme

Custodial Schemes

  • The Custodial scheme called The Deposit Protection Service is run by Computershare. This scheme is free for Landlords to join, however, there is a legal requirement on the Landlord to provide his/her agent with a certificate confirming membership of the scheme and the agent must provide this information to the Tenant within 14 days of the commencement of a Tenancy. Failure to do so, will invalidate the Section 21 notice and may leave the Landlord unable to regain possession of the property through the court system. The Tenant can also take legal action against the Landlord for failure to provide this information which can result in compensation being awarded for an amount of 3 times the deposit paid

How Does This Affect Me If I Join Andrews Scheme?

  • All residential Assured Shorthold Tenancy agreements signed with Andrews from 6 April 2007 onwards, will automaticaly be protected by The Tenancy Deposit Scheme. If however you personally retain the deposit(s) of any Tenant(s) signing their tenancy agreements on or after the 6th April 2007, you will be exempt from the scheme and will also be breaking the law
  • If your Tenants are currently on a periodic or ‘rolling’ contract, their deposit will continue to be held outside of The Tenancy Deposit Scheme. Your Tenants deposits can easily be placed into the The Tenancy Deposit Scheme however, by requesting a fixed Term contract from your branch - just give them a call for full details

Inventories: Protecting Your Property

  • As TDP schemes become law, obtaining an accurate inventory of your property(s) before and after a tenancy will become even more essential! To prevent disputes and make sure you don’t end up paying for other peoples mistakes - speak to your branch about our inventory services
  • If your Tenants damage something in your property and you wish to make a claim on their deposit, this will be made easier if you have an inventory and schedule of condition. Make sure you have an inventory and schedule of condition at the start of every tenancy to ensure you receive back the correct amount you are owed which both parties have agreed
  • If you and your Tenants continue to disagree on the final amount of money you are owed, the case will be handed to The Tenancy Deposit Scheme for Regulated Agents (TDSRA). The TDSRA will fairly resolve any outstanding issues as it is an independent organisation rigorously checked and approved by a higher governing body called The Dispute Service
  • In the event of a dispute between you and your Tenants, Andrews will try and resolve the problem for you, passing the case to The TDSRA usually after 10 days if an agreement has not yet been reached

Further Information

We aim to be as open and clear as possible regarding all sides of our business so if you require further information on The Tenancy Deposit Scheme or any other aspect of Andrews’ Letting & Management services, we are only to happy to help so please contact your local branch for further information

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