Deposit Schemes - the DPS
Since April ‘07 tenants' deposits have to be protected by law, there are two options, one is that you keep the deposit but have insurance for a dispute arising, or the Deposit protection service.
If you do not pay your deposit into one of these schemes, if there is a dispute and you lose, you could be ordered to pay back three times the deposit. Also you could have a problem reclaiming possession of your property should the tenant not leave voluntarily
The Deposit Protection Service (The DPS) is a tenancy deposit protection scheme accredited by the Government. It is provided free of charge, and funded entirely by the interest earned from deposits held in the scheme.
The DPS is run by Computershare Investor Services Plc, which has administered a deposit scheme in the Australian state of Victoria for the last eight years.
Online self-service will allow landlords to register and make deposit payments, transfers and repayments 24 hours a day. Paper based transactions will also be supported. Help and advice will be available through a dedicated call centre during office hours.
An independent Alternative Dispute Resolution (ADR) service, run by the Chartered Institute of Arbitrators, will help to resolve any disputes quickly and without the need for court action.
How does The DPS work?
- The tenant pays the landlord or letting agent their deposit. The landlord/agent pays the deposit into The DPS within 14 days of receiving it.
- Following receipt of the deposit, The DPS will provide confirmation and details of the protection scheme being used to both the landlord/agent and the tenant.
- At the end of the tenancy, the landlord/agent and the tenant agree repayment of the deposit and inform the scheme administrators. The deposit repayment, divided accordingly and including any interest accrued, will be initiated to each party within 10 days.
- If there is a dispute, The DPS administrators return any undisputed amount (plus interest) to the relevant party, but hold the disputed portion until the ADR service or the courts decide what is fair.
Example 1 - Where Landlord and tenant agree
-
A tenant pays a deposit of £700.
-
At the end of the tenancy, the landlord says he wishes to keep £50 to pay for cleaning the flat.
-
The tenant agrees.
-
£650 (plus interest) is returned to the tenant and £50 (plus interest) is returned to the landlord.
Example 2 - The tenant disputes the landlord's deductions
|
 FREE Documents Members Helpline Member Discounts Reliable Service Save Time & Money Tenant Eviction Help New Tenancy Help Legally Compliant
"save yourself many sleepless nights and very likely a fortune." Geraldine Murphy  |
PIMS' membership ensures you are legally compliant
-
No matter what your query or concern you can rest assured our Help line advisors can help you.
-
Comprehensive selection of Documents, Letters Notices are FREE to Members
-
We provide solutions on a vast variety of Letting Legislation
-
|