Government Deposit Scheme

From the 6th April 2007 it became a legal requirement that all deposits taken for Assured Shorthold Tenancies in England and Wales must be held in a tenancy deposit protection scheme.

Landlords have a choice of two schemes in which they can participate in. These are either a ‘custodial’ or ‘insured’ schemes.

R & R have an account with the Deposit Protection Service which is a custodial scheme and all deposits taken on fully managed properties are placed here free of charge. For Let Only properties there is a fee of £40.00 (plus VAT) per deposit registered. This will be taken out of the first months rent in the same manner as the set up fee.

With this scheme the tenant pays the deposit in cleared funds on or before the day of signing tenancy agreement.

At the end of the tenancy, if the Agent/Landlord and Tenant agree how the deposit should be divided, they will tell the scheme what they have agreed and the money will be paid out accordingly.

Should there be a dispute over the deposit, the scheme will hold the amount until the Dispute Resolution Service or Courts decide what is fair