Tenancy deposit schemes

[bossone 10]

Can someone shed some light on this, as I have been told that you only need to set this up, if you recieve rent on properties of than £25K per annum.

[FORE 12]

No. Deposits must be with an approved organisation within 30 days of receipt.

 

There are 3 to the best of my knowledge, e.g. DPS at Bristol. They will send A/C number to both of you, and a seperate 'Repayment ID' when it is to be repaid.

 

Have a look at this.... http://www.direct.gov.uk/en/HomeAndCommunity/Privaterenting/Tenancies/DG_189120

Edited August 21, 2012 by FORE

[richardh 10]

no you have to do this for any deposit paid by a tennant and if not done in one of the accounts available you are liable to be fined.

[Jeffrey Shaw 90]

Can someone shed some light on this, as I have been told that you only need to set this up, if you recieve rent on properties of than £25K per annum.

Each letting is treated independently. Any which is an AST under the Housing Act 1988 as amended necessitates protection of T's deposit- now see the Housing Act 2004 as amended by the Localism Act 2011.

[Jeffrey Shaw 90]

no you have to do this for any** deposit paid by a tennant and if not done in one of the accounts available you are liable to be fined.

** No- only if it's an AST.

[Jeffrey Shaw 90]

Here's a good summary of what the Housing Act 2004 requires, re a deposit paid in connection with an Assured Shorthold Tenancy (Housing Act 1988 ). It was supplied by Messrs. Harringtons Lettings of Sussex.

 

There are three different stakeholders to chose from: The Deposit Protection Service, MyDeposits and the Tenancy Dispute Service... Each stakeholder has its own rules and requirements but the basic principle is as follows:

 

1) The Landlord or Agent needs to register.

 

2) A clause must be inserted into the Tenancy Agreement prior to tenant signature listing which Stakeholder the Landlord intends to use and the stakeholder procedure for deposit return at the end of the tenancy. The clauses can be downloaded from the relevant stakeholder’s website.

 

3) A Prescribed Information Form together with the Terms & Conditions of the Stakeholder must be served on the tenants within 30 days of receipt of the deposit. This form lists details of the tenancy and the stakeholder and the best time to serve this form on the tenants is at the same time the tenants sign the tenancy agreement. This form can be downloaded from the relevant stakeholder’s website.

 

4) The Deposit must then be registered with a stakeholder within 30 days of receipt of the deposit. This deadline is strict and must be adhered to. Failure to register will result in the Landlord or Agent being subject to a fine of up to three times the amount of the deposit and they will also not be able to serve a Housing Act Section 21 notice for possession meaning they cannot get their tenants out!

 

5) If the Landlord or Agent has opted to use the DPS, then the deposit must then be sent to the DPS via cheque for them to hold.