New legislation came into effect on 6 April 2007 to ensure that after this date all deposits taken for Assured Shorthold Tenancies are covered by an approved Tenancy Deposit Scheme. There are three schemes available: The Dispute Service Limited and Tenancy Deposit Solutions Limited t/a mydeposits which are insurance-based schemes and The Deposit Protection Service which is a custodial scheme. Having investigated all three, Cherwell Property decided that The
Dispute Service Ltd is the most suitable scheme for Letting Agents and we are allowed to retain control of the Deposit.
The Deposit must be protected in one of these schemes within strict timescales and the Tenant must be told which scheme. The Deposit must be in money. There are severe penalties if the Deposit has not been protected and the required Prescribed Information given to the Tenant.
In order to comply with this legislation within 14 days of receiving the Deposit, Cherwell Property will protect the Deposit with The Dispute Service Limited.
Deposits are paid by Tenants to Landlords against possible non-payment of rent or damage to property. It is therefore imperative that a detailed and accurate Property Condition/Inventory is drawn up in order to ensure that when the Tenant vacates it is clear whether the property has been left in the same condition as when the Tenant moved in. The Inventory will support the evidence of both the Landlord and the Tenant in the case of a dispute arising.
Deposit disputes need to be resolved as quickly and cheaply as possible. Tenants usually need the money as a Deposit on their next property and Landlords need to know how much will be available for redecoration or repairs. Most tenancies come to an end with no disagreements about the return of the deposit but sometimes there is and this can result in great hardship and inconvenience to both Landlord and Tenant.