Tenants can expect a decision as to how much of their deposit is
going to be returned to them within ten days from the end of the
tenancy, while any part of the deposit kept back at this stage will
remain protected in the scheme being used until such time as any dispute
is resolved.
However, the exact arrangements depend on the type of scheme used.
The only custodial TDP scheme is provided by the DPS, and involves
the DPS holding the deposit money in a bank account. When the tenancy
ends, it releases the deposit to the person who is entitled to it.
Landlords based overseas must use the custodial DPS scheme unless
they employ a British-registered letting agent to manage their tenancy.
If the DPS is used for tenants adopting a rent deposit scheme, such
as when a council pays the deposit and the tenant leaves, landlords can
agree with the council or a third party to keep the deposit in place for
the next tenant.
Under insurance-based schemes, the landlord or the landlord's agent
holds the tenant's deposit and pays a fee to insure it against the
landlord illegally keeping the deposit.
If the landlord does not pay the tenant the amount they are owed at
the end of the tenancy, then the insurer will pay the tenant and try to
get the money back from the landlord.
If the tenants' deposits are paid in instalments as part of a rent
deposit scheme, then landlords must use an insurance-based TDP scheme,
the only two providers of which are MyDeposits and the TDS.
Within 14 days of receiving tenants' deposits, landlords must give
the relevant information to their tenants, together with the address of
the rented property and the amount of deposit paid, the landlord's or
letting agency's name and contact details, and the name and contact
details of any third party that has paid the deposit.
In addition, tenants must be provided with information about items or
services covered by the deposit, the circumstances under which the
landlord will be able to retain some or all of the deposit, and what to
do if there is a dispute over how much deposit should be returned.
Landlords are responsible for making sure the deposit is kept safe
with one of the schemes even if they use a letting agent to look after
the deposit, which provides the tenant with peace of mind.
YOUR AGENT deposits all tenant deposits with the DPS.
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