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, the Home Letting Centre at Cherwell Property decided that The Dispute Service Ltd is the most suitable scheme for us as 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 their deposit is being held and 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 30 days of receiving the Deposit, the Home Letting Centre at Cherwell Property will protect the Deposit with The Dispute Service Limited and provide a Certificate to the Tenant.
Deposits are paid by Tenant to Landlords against possible non-payment of rent or damage to property. It is therefore imperative that a detailed and accurate Inventory/Property Condition Report 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.
Most tenancies come to an end with no disagreements about the return of the deposit however it is vital that any possible disputes are dealt with quickly, efficiently and amicably otherwise the matter is referred to The Dispute Service who would arbitrate and have the final decision in the matter.