Tenancy Deposits: The Options Available

From 6th April 2007 all deposits taken by landlords must be safeguarded by one of three Government approved schemes. Landlords can choose which scheme they wish to use and must safeguard each deposit and inform the tenant which scheme has been used within 14 days of receiving the deposit. The Government has awarded contracts to three companies to run its tenancy deposit schemes.

This guide is designed to inform you of the options available to you.

RLA advice in a nutshell

Avoid deposits OF LESS THAN £600 - or use the Government Custodial Scheme (Option2)

Make sure your inventory is accurate and signed by yourself and the tenant. (For more information and advice on inventories, click here)
Use the correct AST agreement – RLA has new versions. You must issue a “Prescribed Form” also.
Read our Tenancy Deposit Scheme: Information for Landlords

Deposit Protection Scheme (Free to Use)

The Deposit Protection Scheme is managed by Computershare who have been running the same scheme in Australia since 1999. It is provided free of charge and is funded entirely by the interest earned from deposits held in the scheme.

For further information on the Deposit Protection Scheme (DPS) or to register/submit a deposit click here

The importance of Inventories and Conditions Schedules, click here

Do not take deposits

The majority of landlords in the UK rarely encounter the need to hold onto some or all of the deposit, which poses the question “do you really need to take deposits?”

If you wish to avoid the cost and beuraucracy of entering any of the schemes, there are some suggestions on what can be done.

To see these suggestions, click here

The Tenancy Deposit Scheme (TDS)

The Tenancy Deposit Scheme is an insurance backed deposit protection and dispute resolution service run by the Dispute Service and builds on a scheme that has been running since 2003. The new scheme allows landlords and agents to hold onto deposits. There is an annual fee per property for landlords and a one off annual fee for letting agents.

For further information on The Tenancy Deposit Scheme (TDS) or to register/submit a deposit click here

The importance of Inventories and Conditions Schedules, click here

My Deposits

Tenancy Deposit Solutions is an insurance backed deposit protection scheme and allows landlords (either directly or through an agent) to hold deposits. This service requires landlords to pay a joining fee plus an insurance premium per deposit and an annual renewal fee.

For further information on mydeposits.co.uk or to register/submit a deposit, click here

The importance of Inventories and Conditions Schedules, click here

Still don't know what to do?

check out the RLA's advice by clicking here

Tenancy Deposits: The Options Available

RLA advice in a nutshell

Deposit Protection Scheme (Free to Use)

Do not take deposits

The Tenancy Deposit Scheme (TDS)

My Deposits

Still don't know what to do?

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