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Tenancy Deposit Protection Information

The use of the Tenancy Deposit Protection came into force on the 6th of April 2007. It basically means that as a tenant the deposit that you pay will be protected and as a landlord if you don’t protect your tenants deposit you will be asked to repay three times the amount to your tenant.

Author: Carolyn Clayton

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There are many ways in which a tenants deposit can be protected by a landlord and it is up to the landlord to choose the best way in which to do this. The two most popular choices of schemes to use to protect a deposit are custodial or insurance-based schemes. With custodial schemes the tenants deposit is held by the scheme until it is time for it to be repaid. This scheme is free to use and the landlord simply puts the deposit into the scheme at the beginning of the tenancy. With Insurance schemes the landlord keeps the deposit, and pays the insurance scheme to insure against the landlord failing to repay the tenant any money due to them.

The reasons as to why tenants deposits are protected are as follows:

• Tenants get all or part of their deposit back, when they are entitled to it
• Any disputes between tenants and landlords or agents will be easier to resolve
• So that tenants are encouraged to look after the property they are renting

Under certain regulations landlords must, after 14 days of taking the deposit, provide their tenants with details of how the deposit is being protected. These details should include contact details of the deposit scheme that the landlord has chosen as well as the actual contact details of the landlord as well as providing information explaining the purpose of the deposit and what to do if there is a dispute about the deposit. If however a dispute does arise and no agreement can be reached about how much of the deposit should be returned then there will be a free service on offer to help in the resolving of disputes. This service will be available from which ever scheme is protecting your deposit.

Tenancy Deposit Protection exists so that when it comes to a tenant moving out they will receive all or part of the deposit that they paid. This will not be a problem as long as the tenant has stuck to the agreement that they made at the start of their tenancy, which states that the condition and contents of a property should be checked to ensure that they are how they were when the property was first let out. The landlord will then make a decision with the tenant about how much deposit will be returned to them.

Tenancy Deposit Protection exists to benefit both the landlord and the tenant. It is a way of ensuring that the tenant will get money back at the end of the letting period and benefits landlords as it gives them peace of mind that their property will be kept in good condition.

About Author

Helen is the copywriter for ARCH Building Solutions, home of all your Property Letting needs.

Article Source: http://www.1888articles.com/author-carolyn-clayton-1268.html