Tenancy deposit protection (TDP) schemes ensure that money paid by tenants (as deposits) for any flat or house that they are renting, is kept safe. Landlords must protect their tenants' deposits using a TDP scheme if they have let the property on an assured shorthold tenancy (AST) which started after 6 April 2007.
Landlords or agents must use one of the three approved TDP schemes to protect tenants' deposits.
These schemes both encourage landlords and tenants to draw up clear tenancy agreements and provide a free service to resolve disputes
There are two types of scheme available:
-a custodial scheme, where the landlord or agent pays the deposit to the scheme, which will keep it until the end of the tenancy or
-an insurance scheme, where the landlord or agent keeps the deposit but pays insurance premiums to the scheme. This means that the deposit is insured if there is any dispute, and the scheme will repay the tenant the agreed amount directly. The insurance scheme can charge fees to landlords for membership and can require contributions towards the costs of insurance.
If you need any advice or information about tenancy deposit protection, our partners at Landlord Assist will contact you to see how they can help. Your initial consultation will be free. Just fill in the form below
