What is a tenancy deposit protection scheme?

As part of our landlord insurance video series we look at tenancy deposit schemes, what is legally required and why this protection is good for you and your tenants. Watch the video to find out more…

What is a tenancy deposit protection scheme?

 

Video transcript

Hi, my name is Lorna, and I’m and advisor for Towergate.

In this video I’m going to talk about tenancy deposit schemes.

As the landlord you a legally required to hold your tenants deposit in a government approved tenancy deposit scheme. The three that currently available are:

Upon receiving you have 30 days to deposit the funds but don’t get the security deposit confused with the holding deposit.  This is separate and it’s the security deposit which should be covered by the scheme.

Within those 30 days you also have to provide your tenant with the following information:

  • The address of the property.

  • Confirmation of the amount of deposit received, details of which scheme was used and contact details for the scheme and conflict resolution service.

  • Your or your agents contact details.

  • Contact details of the person who has paid the deposit.

  • Stipulations around why the deposit might not be returned.

  • How to recover the deposit.

  • Instructions for your tenants should you be unavailable at the end of their tenancy.

  • Instructions on what to do should there be a dispute over the deposit.

Doing this is that minimum legal requirement but the deposit services also provide a free dispute resolution scheme.  This is an optional service and requires both parties to evidence that they have both ‘opted in’.

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