You may be wondering what on earth the Tenancy Deposit Scheme (TDS) is and how it affects you. Let us explain.
The Tenancy Deposit Scheme (TDS) is run by The Dispute Service Ltd. It is an insurance-backed tenancy deposit protection scheme authorised by the government.
The TDS has two main roles:
To protect deposits and to help resolve disputes about deposits
What is tenancy deposit protection?
Tenancy deposit protection applies to all deposits for assured shorthold tenancies that started in England or Wales on or after 6 April 2007. By law, a landlord or agent who receives a deposit for such a tenancy must protect the deposit.
Most residential tenancies in the private rented sector are assured shorthold tenancies, with some exceptions. For example, a tenancy cannot be an assured shorthold tenancy if:
- the tenant is a company;
- the rent is more than £100,000 a year;
- the tenancy is for a holiday let; or
- a university or college rents the accommodation to its students.
Tenancy deposit protection means:
- protecting a tenant’s deposit with a government-authorised scheme such as TDS;
- providing the tenant with prescribed information about where their deposit is being;
- protected and how it will be managed.
Tenancy deposit protection schemes can be one of two kinds:
Custodial – this is where the scheme itself holds the deposit during the tenancy.
Insurance backed – this is where the landlord or agent holds the deposit during the tenancy, but must give it to the scheme at the end of the tenancy if there is a dispute. The scheme is insured because this guarantees that tenants will always get back the money to which they are entitled.
The TDS is an insurance-backed scheme.
Paul Carr Residential Lettings use the Tenancy Deposit Scheme. You will be provided with a certificate to confirm that your deposit is held within the TDS.
If you are looking to rent a property, contact our Residential Lettings, team who are committed to making the application process, and your tenancy, as stress-free as possible.