What is the Tenants Deposit Scheme?

The Tenants Deposit Scheme was introduced on the 6th April 2007 with the sole intention of safe guarding assured shorthold tenancy deposits and ensuring that tenants who are entitled to get all or part of it back at the end of the tenancy actually do!

A landlord or agent acting on behalf of a landlord must (by law) lodge a deposit with one of the four government backed tenancy deposit schemes within 30 days of receiving it. In England and Wales these are:

– Deposit Protection Service
– My Deposits
– Tenancy Deposit Scheme
– Capita Tenancy Deposit Protection

There are two ways a deposit is protected:

Custodial – this is when the money is physically handed over to deposit scheme and is held by them until the end of the tenancy.

Insured – this is when the money is kept by the landlord or agent but the deposit scheme is aware of the deposit and provides insurance to ensure the deposit will be available at the end of the tenancy.