Deposit Protection Schemes

[darr.gough]

Can anyone enlighten me on what exactly happens in a deposit protection scheme and is it legislation all over the UK to ensure your deposit is in a protection scheme?

 

[TurnKey Landlords]

Hi there,

It is indeed legislation in England, Wales and Scotland that you must protect your tenants' deposit in a deposit protection scheme and within 30 days of the commencement of the tenancy inform your tenants of the following details of the scheme:

- the rental property address and the deposit amount;
- your / your letting agent's name and contact details;
- if a third party has paid the deposit, their name and contact details;
- items or services covered by the deposit;
- under which circumstances you will be entitled to retain any of the deposit (to cover damage, unpaid rent etc); and
- what the tenant can do if there is a dispute over the return of the deposit

In England and Wales, the three government-backed schemes are Mydeposits, The Dispute Service (TDS) and the Deposit Protection Service (DPS). In Scotland, the schemes are The Letting Protections Service Scotland, Safedeposits Scotland and Mydeposits Scotland. All three Scottish schemes and the DPS are custodial, meaning that they are free but the deposit is held; Mydeposits and TDS are insurance-backed, which means that the Landlord pays premiums but retains the deposit.

There is currently no legislation requiring deposits to be protected in Northern Ireland, though it is under debate.

The terms of the schemes means that tenants can get their deposits back in full if they pay the bills and rent, keep the property undamaged and otherwise adhere to all the terms of their tenancy agreement. You must in turn adhere to the agreement and to the terms of the scheme.

I hope this information helps.