Landlord Advice
What is a tenant deposit scheme?
It is a scheme to provide security for deposit monies, and speedy dispute resolution in those cases where agreement cannot be reached between Landlord and Tenant at the end of a tenancy.
Who can belong?
Only Agents who are members of a professional body who require them to have separate client accounts for both tenant and landlord monies. These accounts are secured further by bonding, which ensures that the money will be safe.
How is it financed?
TDSRA is run by the Dispute Service, which charges member firms an annual subscription equivalent of £6 per office per week. The Agent collects this money and pays the TDSRA on an annual basis. Adjudications are free to both tenants and landlords.
What will tenants be charged?
There is no charge to the tenant. Most member firms make a nominal charge to the landlord either annually or at the start of each new tenancy.
Who are the adjudicators?
The adjudicators have been recruited from a number of disciplines: law, environmental health, surveying, inventory checking, rent assessment, etc. They have also been trained in the requirements of TDSRA. The Independent Case Examiner was previously the General Manager for the Independent Housing Ombudsman and director of the government-financed pilot TDS pilot.
How does it work?
The tenant pays the deposit to the Agent at the beginning of the tenancy. It is held intact until the check out is complete and a proposal for the settlement has been agreed with both the Landlord and the Tenant. If agreement is reached, the agent will distribute the money in the normal way. If there is disagreement the agent will try to negotiate but if this fails the money and the dispute will be sent to the TDSRA for adjudication. Once a decision has been reached the money will be distributed to the parties accordingly.
