Tenancy Deposit Scheme (TDS)
Since 6 April 2007 all landlords must now protect tenants' bonds by registering them with a Government approved scheme (see the Housing Act 2004). Joining one of the schemes is mandatory and the penalties for non-compliance are considerable.
Where the property is managed by Linley & Simpson Ltd
- Landlords will notice very little difference and we will guide you through the new regulations and processes as the need arises.
- Linley and Simpson Ltd is a member of ARLA (the Association of Residential Letting Agents), and is an approved member of the Tenancy Deposit Scheme (TDS), via membership of 'The Dispute Service Ltd'.
- Deposits are held by the Agent as Stakeholder which means that agreement between Landlord and Tenant must be reached regarding any proposed deductions at the end of the tenancy. If deductions can not be agreed amicably then the parties will be forced into arbitration via TDS.
- Our comprehensive inventory and schedule of condition will greatly assist in settling disputes.
- Any disputes that should arise will initially be handled by Linley and Simpson.
- Landlords can no longer hold the deposit themselves unless they are registered with an approved scheme in their own right.
- Tenants have the right to know which scheme their deposit is registered with and we will issue them with all the information they need within the prescribed timescales thus protecting our Landlords from unnecessary legal action.
- Tenants prefer to deal with a reputable managing agent in most cases as they know that their deposit will be protected properly at all times.
Where the landlord manages the property themselves (let only service)
- Landlords have to join one of several schemes approved by the Government in order to handle their own deposits.
- Each scheme has it's own rules which bind the Landlord.
- The Landlord then has a set time from receiving the bond to advise the Tenant where the deposit is held and to issue the Prescribed Information as defined in the Housing Act 2004.
- If landlords use the custodial scheme then bonds must be paid over to that scheme.
- If landlords use the Insurance based schemes, they will have to pay a fee and/or premium.
- Failure to comply fully will result in the Landlord being liable to a fine of up to three times the deposit amount, payable to the Tenant. In addition the Landlord may be ordered to repay the deposit to the Tenant with immediate effect and will also lose the usual right to obtain possession under the Act.
LINLEY & SIMPSON CAN RELIEVE LANDLORDS OF THIS COMPLICATED BURDEN VIA OUR FULL MANAGEMENT SERVICE. (click here for details)