TDPS –Tenant Deposit Protection Schemes
The Tenancy Deposit law came into effect on sixth of April 2007, in England and Wales. All Assured Shorthold Tenancies and rentals in the private sector (with rents up to £25,000 per annum) are protected under this scheme. Tenants are now protected from landlords and letting agents unfairly withholding their deposits. The law demands that within 14 days of receiving the full deposit, the landlord or letting agent, must sign up with one of the following schemes:
The Deposit Protection Service (or DPS)
This is a custodial scheme, authorized by the government and is free to use. The Alternative Dispute Resolution (ADR), which is an independent, unbiased and free service, will strive to settle all disputes without needing to go to court.
Tenancy Deposit Solutions Ltd (TDSL)
This is a government appointed insurance-based scheme for tenancy deposit protection, and is jointly owned by Hamilton Frazer Insurance and the National Landlords Association. The scheme allows landlords and letting agents to hold deposits, and in the event of a dispute the ADR (see above) can be approached.
Tenancy Deposit Scheme (TDS)
This scheme is also insurance-based and is run by the Dispute Service which makes it mandatory for all landlords to go and register full information of the rentals for which they have taken deposits, at the start and end of every tenancy.
If there is a dispute regarding the deposit when the tenancy gets over, this can be resolved quickly and impartially by the ICE or the Independent Complaints Examiner.
If the landlord or letting agent has not complied with this law, he will be liable to repay the tenant three times the deposit. The tenant, on the other hand, must leave the property in the same condition that he first rented it, (barring normal wear and tear) in order to get his full deposit back.