The Tenancy Deposit Protection Scheme (TDPS) came into effect on 6th April 2007 and rules that every landlord in the country must put the Tenancy deposit they receive from a tenant with an Assured Shorthold Tenancy into a government approved scheme.
It is designed to ensure the highest level of transparency and honesty is achieved when dealing with Tenancy deposits with each scheme providing a free adjudication service to help resolve any dispute that may occur between a landlord and a tenant with respect to the distribution of the Tenancy deposit at the end of the Tenancy.
There are many benefits of the TDPS to both landlords and tenants. Providing a tenant complies with the terms of their tenancy agreement, returns in a good, clean condition and does not damage the property they have lived in and pay their rent and bills throughout, the TDPS aims to ensure they should get their deposit back.
For landlords, the inclusion of a free and independent dispute resolution service is a significant advantage.
Landlords must register any deposit they receive in the TDPS within 30 days. In addition to putting a deposit into a TDPS, landlords have several other responsibilities. For instance, they have only 30 days from the receipt of a deposit to provide tenants with a range of details, including the name and contact details of the TDPS they are using and its dispute service.
They must also document under which circumstances they would claim some or all of the deposit at the end of a tenancy and how the tenant can apply to get it back.
In the event of a dispute, monies protected by the TDPS will continue to be so until a resolution has been realised. This gives both landlords and tenants a high level of security and allows for time for a compromise to be reached or a decision made.
At Open House, when undertaking an inventory check, clear colour photographs of all properties, their contents, fixtures and fittings are taken prior to a tenancy and again at the end. This limits the potential for a dispute to occur, although inevitably there are still occasions when a tenant disagrees with a Landlord’s claim.
Should this be the case, they should refer to the details of the dispute adjudication service provided at the start of their tenancy.
Landlords who opt for full management service through Open House will find we take all the stress and effort out of the TDPS. We will take the Tenancy deposit from a tenant at the start of their tenancy and register it with the TDS, at the end of the term and with the agreement of both parties, we will then distribute the Tenancy deposit speedily and efficiently.
All parties can be entirely confident that their details are held in strict confidence and in accordance with the Housing Act 2004.