The schemes allow Tenants to get all or part of their deposit back when they are entitled to it. The schemes also encourage Tenants and Landlords to make a clear agreement from the start on the condition of the property.
The schemes:
Allow tenants to get all or part of their deposit back when they are entitled to it
Make any disputes easier to resolve
Encourage Tenants and Landlords to make a clear agreement from the start on the condition of the property
There are two types of Tenancy deposit protection schemes available for Landlords and Letting Agents. All schemes provide a free dispute resolution service.
Insurance-based schemes:
The Tenant pays the deposit to the Landlord
The Landlord retains the deposit and pays a premium to the insurer - the key difference to the custodial scheme
Within 14 days of receiving a deposit:
The Landlord or Agent must give the Tenant the details about how their deposit is protected including:
The contact details of the Tenancy deposit scheme selected
The Landlord or Agent’s contact details
How to apply for the release of the deposit
Information explaining the purpose of the deposit
What to do if there is a dispute about the deposit
At the end of the Tenancy:
If an agreement is reached about how the deposit should be divided, the Landlord or Agent returns all or some of the deposit
If there is a dispute, the Landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved
If for any reason the Landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the Tenant if they are entitled to it
The Tenant pays the deposit to the Landlord or Agent
The Landlord or Agent then pays the deposit into the scheme
The interest accrued by deposits in the scheme will be used to pay for the running of the scheme.
