What is the Tenancy Deposit Scheme?

Since 6th April 2007 the law has required deposits of Assured Shorthold Tenancies to be protected by one of two possible Tenancy Deposit Protection schemes:

1. A single Custodial scheme
2. Or one of two insurance-based schemes.

The custodial scheme is free to use, but the two insurance-based schemes will charge a fee or subscription to belong.

Single Custodial Scheme:

The tenant pays the deposit to the Landlord/Agent at commencement of the AST. The Landlord/Agent must (within 30 days) register the tenancy details and pay the deposit into the Custodial Scheme bank account, then provide the tenant and landlord with the details of how and where the money is secured.

When the tenancy ends, if the Landlord/Agent and tenant agree about how the deposit, or part of it, should be divided (even if it means some being retained by the Landlord) they will sign some paperwork, which tells the scheme how and to whom the deposit should be returned or allocated. The scheme must return any undisputed amount within ten days of recieving confirmation of that agreement.

Deposit schemes

Landlords or agents must use one of the three approved TDP schemes to protect tenants' deposits. If any other scheme is used, deposits are not protected in law. The three approved schemes are:

• Deposit Protection Service (DPS)
• MyDeposits
• Tenancy Deposit Scheme (TDS)

If you don't protect your tenants' deposits when required to, your tenants can claim compensation from you and you may have to repay them their deposit plus three times the amount of their deposit. You will also be unable to seek possession of your property in certain circumstances.

Can I deposit the money to one of the schemes myself?
Yes, you can deposit the money yourself, providing you secure it with a Government approved deposit protection service and within the required number of days of receipt (currently 30 days). Failure to do so can put you at risk, as your tenants could claim upto 3 times their deposit amount. You must also be sure to provide them with the required Prescribed Information sheet. You may be unable to seek possession of your property in certain circumstances, affecting your ability to regain possession of the property under fast track possession. Visit Direct.Gov for full details. Visit DPS for info on Registering your own deposits.

Does a TDP scheme apply to all types of Residential Tenancies?
No, only Assured Shorthold Tenancies. So for example, assured tenancies or non-housing act tenancies such as 'Company Lets' are not required to be covered under the TDP scheme.

Which scheme does easilett use?
Easilett uses the custodial scheme provided by the DPS (Deposit Protection Service). We send all deposits to the DPS, who provide you and your tenant with a unique ID and Repayment ID, which you both use to reclaim the deposit at the end of the tenancy.

What if there is a dispute?
In the event of a dispute, Easilett will attempt to arbitrate for 10 days (if managed), after which time, if a satisfactory resolution between both parties has not been agreed, the dispute will be referred to the Dispute Service for independent arbitration. This service is offered free of charge to Landlords using our managed service.