What you need to know about the deposit protection scheme
If you rented out a property on an assured shorthold tenancy after April 2007, the tenant’s deposit must be placed in a TDP – tenancy deposit protection – scheme. A TDP is a scheme that is backed by the government to ensure well-behaved tenants get their deposits back.
Tenant obligations
A satisfactory tenant is one who pays all their bills on time, does not damage the property they are living in, and meets all the other terms of the tenancy contract, such as paying the rent. Landlords also have obligations to fulfil in terms of the safety of the building that is being rented, along with the necessary maintenance and repairs.
Where does the money go?
When a landlord receives the tenant’s deposit, it must be placed in a suitable scheme within 30 days. In England and Wales these schemes include the Deposit Protection Service, the Tenancy Deposit Scheme, and MyDeposits. When the deposit is placed with a scheme, you can pay to insure it; alternatively, the money can be held for free in a custodial scheme.
When the tenancy ends, the money must be returned to the tenant within 10 days once both parties have agreed how much should be retained and how much should be returned. This could be affected by the state of the property at the end of the tenancy and by the condition of the furnishings if the property was furnished. A detailed inventory can be a vital tool for accurately determining the state of a property and its contents at the beginning and end of a tenancy.
While landlords have ever-more rules to follow, property inventory software can make some administrative tasks required when managing property easier. For more information about property inventory software, contact an expert in this field such as https://inventorybase.co.uk/.
Regulations governing tenancy are designed to protect good tenants from bad landlords and good landlords from bad tenants. As a landlord, it is imperative to keep clear and detailed documentation of all aspects of your property, and particularly the condition of its contents, should there be a dispute with the tenants at the end of their tenancy. A clear inventory that has been signed off by both parties will be a huge help in resolving any kind of dispute.