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Protection for a tenant's deposit |
For many private tenants, the day when they expect to receive the return of their deposit has in the past too often been tinged with disappointment.
However, in recent years landlords have been obliged to protect their tenants' deposits under a tenancy deposit protection (TDP) scheme that guarantees the return of the deposit provided tenants meet the terms of the tenancy agreement and do not damage the property.
A TD scheme has to be used to protect anybody renting on an assured shorthold tenancy (AST), and there are three legally approved schemes to choose from: the Deposit Protection Service (DPS), MyDeposits and the Tenancy Deposit Scheme (TDS).
While these schemes do not cover 'holding' deposits (which have the aim of reserving a property for a prospective tenant), as soon as the prospect becomes a tenant the deposit converts to one that needs to be protected.
Landlords who do not protect their tenants' deposits face being taken to court and the possible penalty of repaying the full deposit plus three times its face value.
Seek the advice of our residential property solicitors if you would like to know more about TDP schemes or anything else to do with letting a property.
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