If a landlord lets out a property under an assured shorthold tenancy agreement he is obliged by law to place the deposit he receives from the tenant into a Tenancy Deposit Protection scheme (TDP ) within 30 days. Landlords are also legally responsible of informing their tenants of all the contact details for the chosen TDP scheme and its dispute resolution procedure.
Although a landlord is not required to take a deposit, it is advisable to request one from the tenants. It can be used to cover the costs of damage to the property caused by tenants or failure to pay rent. The deposit charged is usually the equivalent of 4-6 weeks rent.
Under current UK law, any landlord letting property under an assured shorthold tenancy in England or Wales must place any deposit they receive in one of the three Government-backed tenancy deposit schemes. (Scotland and Northern Ireland have their own schemes.)
In England and Wales the 3 schemes are:
- Deposit Protection Service (Custodial and Insured)
- Tenancy Deposit Scheme
Within these schemes there are 2 types of protection available – insurance-based and custodial.
Most landlords use the custodial schemes, where the money paid by the tenant is paid directly into the scheme. With insurance based schemes the money paid by the tenant to the landlord is used to pay an insurance premium.
If you are a landlord and would like further advise or information on tenancy deposit protection schemes contact one of our highly qualified and experienced team at Peter Robinson & Co. now on 0161 678 7996