Tenancy deposit protection

The tenancy deposit protection scheme is mandatory for all new tenancy agreements:

• Landlords are required to join a statutory tenancy deposit scheme, if they take deposits.
• This means that deposits are safeguarded.
• Tenants will get all or part of their deposit back, if they have kept the property in good condition.
• The scheme offers alternative ways of resolving disputes, which aims to be faster and cheaper than taking court action.

There are only three schemes that have been awarded contracts by the Government. The three schemes are:

• The Deposit Protection Service (The DPS) - a custodial scheme where landlords must hand over the deposit in full. Free to use and open to all landlords and letter agents. The DPS service is funded entirely from the interest earned from deposits held.
• My Deposits - is a partnership between the National Landlords Association and Hamilton Fraser Insurance. This insurance based scheme enables landlords, either directly or through agents, to hold the deposits.
• The Tenancy Deposit Scheme (TDS) - this is an insurance based scheme run by The Dispute Service that builds on a scheme established in 2003 to provide dispute resolution and complaints handling for the letting industry. The new scheme enables letting agents and landlords to hold deposits.

A Guide to Tenancy Deposits, Disputes and Damages has been jointly published by all three government authorised tenancy deposit protection schemes. The guide covers items, such as collation of evidence and what an adjudicator looks for when considering a dispute, and outlines the principles on which scheme adjudicators make decisions so that the process is consistent and transparent for letting agents, landlords and tenants alike.

The only alternative to using one of the National Rental Deposit Schemes is to use an existing Local Authority Bond Scheme, which most Local Authorities have. To find out more contact the Private Renting Team:

Telephone: 0117 352 6888
Email: private.renting@bristol.gov.uk