Which tenancy deposit scheme is the best

It seems for most landlords that the no cost custodial scheme is the default option. For many landlords who have student or high risk tenants then the guarantor no deposit option reduces the risk and avoids the bureaucracy involved with using the TDS.

The insurance based scheme operated by tenancydeposit. It also has attractions to landlords who do not want to put off tenants but also want to ensure that they take a sufficient deposit to make sure their investment property is safeguarded. When the TDS came into force I looked at its impactions and came to the conclusion that it was a waist of time. Hi — My letting agent has just gone bust without any warning whatsoever. Not ARLA registered. Now I have no clue what scheme it is in, if any at all.

All I can think of is that I will have to stump up their cash myself. A ptiful situation. Your email address will not be published.

TDS — Which Scheme? Approved insurance based schemes The two insurance based schemes do allow the landlord or their agent to retain the tenancy deposit. Ignorance of the Tenancy Deposit Scheme is no defence.

Pre-TDS deposits may also be protected Most worryingly for landlords is a recent casewhich suggests that a tenant may in fact be protected by the legislation even where the original tenancy began before the implementation of the legislation. Alternatives to using a Tenancy Deposit Scheme There are several alternatives to the approved schemes that we have come across that offer a no cost solutions to landlords. For example, if you think your landlord wants to withhold an unreasonably high amount of your deposit to cover their costs, you can complain to the scheme's dispute resolution service.

It will then investigate the facts and recommend a solution. If you use the dispute resolution service, you and your landlord must do what it recommends - its decision is final. Once you and your landlord have agreed how much deposit you will be getting back, it must be returned to you within 10 days.

Know your rights: my landlord won't return my deposit - find out what you can do to get your deposit back. Financial Services Limited. Financial Services Limited is a wholly-owned subsidiary of Which? Limited and part of the Which? Money Compare is a trading name of Which? Money Compare content is hosted by Which? Limited on behalf of Which? Mortgage calculators. Compare Mortgages.

In this article. TDS Academy : TDS provides property professionals with invaluable training in tenancy deposit protection and tenancy deposit disputes. Content is correct at the time of writing. These views are those of the author alone and do not necessarily reflect the view of TDS, its officers and employees. What is a tenancy deposit protection scheme? What schemes are available? The landlord can choose which scheme to use.

Within these three approved schemes, there are two types of scheme: custodial and insurance. Custodial TDP schemes With a custodial deposit scheme, the tenant's deposit is held in a bank account which cannot be accessed by the landlord or the tenant by the scheme operator. Insurance TDP schemes Here, the landlord or their agent holds on to the tenant's deposit but pays a fee to insure it against being kept unfairly at the end of the tenancy.

What will happen when a new tenancy starts? Once a new tenancy agreement is signed, the landlord must put the tenant's deposit into a protection scheme and within 30 days notify the tenants of the following: The contact details of the landlord or agent The contact details of the chosen deposit protection scheme Information explaining the purpose of the deposit How to apply for the release of the deposit What to do if there is a dispute about the deposit If after 30 days the tenant hasn't received this information, they should contact the landlord to obtain it.

Extra measures to consider Deposit protection schemes do not require an inventory - a record of the condition of the property at the start of the tenancy - to be produced, but it can be helpful to draw one up anyway, as they may help in the event of a dispute at the end of a tenancy.

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