Tenants: Your Deposit

A Guide to The Tenancy Deposit Scheme

Initially set up under Government guidance, the TDS has 2 main functions; to protect your deposit and to help resolve disputes about deposits.

These schemes are designed for assured shorthold tenancies that started in England and Wales on or after 6^th April 2007. There are currently only 3 schemes:

·      Deposit Protection Services

·      My Deposits

·      Tenancy Deposit Scheme.

The schemes can then also be subdivided into those that are ‘custodial’ and those that are ‘insured’. Put simply, the landlord can decide whether to pay the tenant’s deposit into a scheme or alternatively, just register the deposit with a scheme (and pay a small fee), which in effect allows the hold the monies.

At all times, the deposit is always viewed as the tenant’s money.

The landlord or agent must put a deposit in a scheme within 30 days of receiving it, and in turn the tenant will receive confirmation of this.

A simple way to check if your deposit has been protected is to contact each of the 3 schemes mentioned earlier. If you discover that your deposit is not protected then you should immediately contact your landlord/ agent.

At the end of the tenancy, the landlord must return the deposit to the tenant within 10 days of both parties agreeing how much of the deposit should be returned.

If there does happen to be dispute over the figure to be returned, then the disputed amount will remain in the scheme until a settlement is agreed. The remainder will be returned to the tenant as above.