How to join a tenancy deposit scheme
Landlords: how to join a tenancy deposit scheme
The types of schemes that are available to landlords and your legal responsibilities
Tenancy Deposit Schemes
There are only three schemes that have been awarded contracts by the government. The three schemes are:
The only alternative is to use an existing Local Authority Bond Scheme, which most local authorities have. Contact us to find out more.
Your legal responsibilities
The tenancy deposit protection scheme is mandatory for all Assured Shorthold Tenancies. Within 30 days of receiving a deposit from your tenant, you must:
- Protect the deposit in a recognised Tenancy Deposit Protection Scheme
- Serve on your tenant the “prescribed information”, or “PI”. This gives your tenant full information about the scheme you have used. (the protection schemes will not serve the PI for you, but may provide a template that you can use)
If you don't meet these requirements, your tenant will be entitled to compensation in the County Court of up to three times the value of their deposit.
Non compliance of these requirements will affect your ability to serve notice on your tenant at the end of a fixed term contract under section 21 of the Housing Act 1988 and recover possession of the property in the County Court.