Tenancy Deposit Schemes Are Now Compulsory Features

| Saturday, September 10, 2011
By Alfred Tanya


In case you are a UK landlord and take a deposit for your rental property you have to spot this with 1 of 3 such schemes which been authorised.

* The Deposit Protection Service - the only custodial deposit protection scheme - is totally free to utilize.

* Tenancy Deposit Solutions Ltd is actually a partnership in between the National Landlords Association and Hamilton Fraser Insurance. This insurance-based tenancy deposit protection scheme enables landlords to hold deposits.

* The Tenancy Deposit Scheme is an insurance-backed scheme that enables landlords to hold deposits.

When a landlord receives a deposit he or she has 14 days to comply using the specifications of 1 of the above schemes. The landlord have to also, inside two weeks and inform the tenant in writing of:

* Full name, address, telephone number, e-mail address and any fax number of the scheme administrator of the authorised tenancy deposit scheme applying towards the deposit;

* Details contained in a leaflet supplied by the scheme administrator towards the landlord which explains the operation of the relevant Housing Act provisions.

* The procedures that apply below the scheme by which an quantity in respect of a deposit may possibly be paid or repaid towards the tenant in the finish of the tenancy.

* The procedures that apply below the scheme exactly where either the landlord or the tenant is just not contactable in the finish of the tenancy.

* The procedures that apply below the scheme exactly where the landlord and also the tenant dispute the quantity to be paid or repaid towards the tenant in respect of the deposit.

* The facilities readily available below the scheme for enabling a dispute relating towards the deposit to be resolved without having recourse to litigation.

There's no requirement inside the Act for the tenancy agreement itself to specify which deposit protection scheme has been applied despite the fact that landlords may possibly do so if they so wish.

Tenancy Deposit Solutions has no suggested wording but concerns a certificate to landlords which will be utilised to offer data to tenants and to supply proof of compliance using the Act. The Tenancy Deposit Scheme however has a type of wording which it calls for members to make use of - and that is only offered to members.

In the finish of the tenancy, if the landlord and tenant agree how the deposit must be divided, they are going to tell the scheme they're making use of what they've agreed and also the income is going to be paid out accordingly. Really should there be a dispute more than the deposit, the scheme will hold the quantity until the dispute resolution service or courts determine what exactly is fair.

Each custodial and insured schemes function option dispute procedures which will be referred to as on to settle disputes.




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