Tenancy Deposit Scheme

From 6 April 2007, all landlords and letting agents taking deposits for assured shorthold tenancies (ASTs) in England and Wales will be required to join a Government-accredited tenancy deposit protection scheme. This will safeguard all the deposits landlords and agents take.

To avoid disputes going to court, each scheme will be supported by an alternative dispute resolution service (ADR), whose aim is to make disputes faster and cheaper to resolve.

The new legislation only applies to new deposits paid for ASTs entered into on or after 6 April 2007. Any deposit paid before this date will not need to be safeguarded by a tenancy deposit scheme.

However, if the tenant decides to remain in their existing rented property beyond the initial fixed term, the deposit will be affected by how the tenancy is continued:

a) Periodic tenancy - if the tenancy continues with no new agreement being created, the deposit will not have to be safeguarded by a tenancy deposit protection scheme.

b) Replacement tenancy - if a new AST is created between the landlord and tenant for the same property on substantially the same basis, the initial deposit paid prior to 6 April 2007 will need tenancy deposit protection.

Here at Citypadz we are already part of The Deposit Protection Service (The DPS) a government accredited custodial scheme run by Computershare Investor Services Plc. We can take the burden off your shoulders and handle the whole process if you opt for our Full Management Package. For further information on the scheme and how we can help you as a landlord please download our pdf document or visit http://www.depositprotection.com/