The Tenancy Deposit Scheme is a government approved, not-for-profit company that provides Insured and Custodial tenancy deposit protection. Government legislation protects any tenancy deposit taken for an assured shorthold tenancy in England and Wales. It was introduced on 6 April 2007.
As a landlord, it’s essential that you know about your Tenancy Deposit Protection (TDP) obligations.
You’re required by law to protect your tenant’s deposit within 30 days of receiving it. Remember, a deposit is considered ‘received’ from the moment you take the payment, not when the funds have cleared. This applies to all forms of payment, whether it’s a cheque, a bank transfer or cash.
If you fail to comply with your legal obligations, there are two possible sanctions:
You cannot end the tenancy or regain possession of your property under section 21 of the Housing Act 1998 until the deposit has been repaid or a court case has ended. Your tenant can apply to a County Court to receive compensation between once and three times their deposit’s value if:
- they think their deposit is not protected
- they’ve not received information about the scheme you protected their deposit with.
You can find out all about the Deposit Protection on the TDS website
Lloyd Herbert & Jones is registered with the The Dispute Service and we are happy to provide more information and advice on this if you are thinking of renting out a property with us.