TDS (Tenants Deposit Scheme)
A deposit is always required to be paid by a tenant. Usually in unfurnished property this will be a sum at least equivalent to a months rent, sometimes greater.
April 6th 2007 saw the introduction of the new tenant deposit legislation. Compliance with this law is exceptionally important and there are severe punitive repercussions for landlords who fail to fulfil the mandatory obligations set out in the Act.
All Assured Shorthold Tenancy deposits MUST now be held in the manner of a ‘Stakeholder’
All deposits MUST be registered in either a ‘Custodial’ or an ‘Insured’ Scheme which are provided by one of three recognised Government approved organisations. Registration MUST be completed within 14 days of the commencement of any Assured Shorthold Tenancy with the tenant being informed of the location, registration number and his/her legal rights.
Since October 2007 all disputes which cannot be resolved by negotiation have been required to be settled by mediation through an independent arbitration service as defined by the Government scheme within which the deposit is registered.
Your Letting Consultant will be pleased to answer any questions you may have in this regard.