Tenancy deposit protection (TDP) schemes which started on the 6th April 2007 guarantee that tenants will get their deposits back at the end of the tenancy, if they meet the terms of the tenancy agreement and do no damage the property. Landlords must protect their tenant’s deposits using a TDP scheme if they have let the property on an assured short hold tenancy.Landlords or agents must use one of the three approved TDP schemes to protect tenant’s deposits where these conditions apply. If any other scheme is used, deposits are not protected in law. The three approved schemes are:
- Deposit protection service (DPS)
- Tenancy Deposit Scheme (TDS)
If you don’t protect your tenant’s deposits when required to, your tenants can take you to court and you may have to repay them their deposit plus three times the original amount. You will also be unable to seek possession of your property in certain circumstances.
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