Tenancy deposit protection
What is a tenancy deposit protection scheme?
Since 6 April 2007 all landlords are required by law to place deposits for Assured Short hold Tenancies (AST) into a government authorised tenancy deposit protection scheme (TDP) within 30 days of receiving it.
The scheme was introduced to ensure that landlords and letting agents use deposits correctly and do not withhold them unfairly. If there is a dispute at the end of the tenancy with regards to damage or outstanding rent arrears the deposit can be used to rectify repairs or reduce the debt.
How does protecting the deposit help?
If a dispute arises at the end of the tenancy, the tenant and landlord can receive free, impartial advice from the scheme to resolve any issues over deposit deductions. A landlord can raise the dispute with the scheme if they feel the tenant has broken the terms of their tenancy and the tenant disagrees with the deposit deduction, likewise a tenant can raise a dispute if they feel their landlord is unfairly withholding their deposit.
Deposits made to “hold” a property before the tenancy agreement is signed are not protected but become the deposit once the tenancy is signed and should be protected within 30 days.
At the beginning of a new AST agreement the landlord or agent is required to supply the tenants with the following information:
- Details of the tenancy deposit protection scheme
- Contact details of the landlord or agent
- What to do in the event of a deposit dispute
More information on the TDP scheme can be found by clicking on the following link - Tenancy deposit protection schemes
Last updated: 01/09/2015 10:53