Tenancy Deposit Scheme
TENANCY DEPOSIT SCHEME
On 6th April a landlord or agent will not be able to hold a tenant’s deposit unless they belong to one of the insurance schemes run by one of two designated organisations, or they hand over the deposit to the custodial scheme (Deposit Protection Service) who holds it until the end of the tenancy. A landlord or agent must inform the tenant within 14 days who is holding the deposit, and give relevant details.
The first insurance based scheme is called Tenancy Deposit Scheme and is for agents who are members of ARLA or NAEA. In this scheme, the agents keep the deposit in their clients account. There is also a dispute service with this scheme. The second insurance based scheme, The Tenancy Deposit Solutions Ltd is run by the National Landlords Association (NLA) and is for private landlords and agents. In this scheme the deposits can be held by the landlord or agents and is protected by the insurance.
These schemes are designed to protect the tenant’s deposit and to provide a dispute resolution service at the end of the tenancy, if needed.
Top Lettings will belong to an insurance based scheme and therefore we will continue to hold deposits in our clients account, thus saving our landlords from joining a scheme themselves.
For more information, please call us.