Tenancy Deposit Scheme

When tenancies come to an end, there is rarely any disagreement about the return of the deposit. However, on those occasions that there is disagreement, it can be a cause of hardship, delay and inconvenience to all parties concerned.

The Housing Act 2004 makes provision both for the protection and return of tenancy deposits and the resolution of disputes over their return. All deposits taken for Assured Shorthold Tenancies must be covered by a tenancy deposit protection scheme, of which there are three.

We have chosen to join the Tenancy Deposit Scheme which is an insured option and every tenancy for which we hold a deposit will have the deposit protected by the scheme.

How the tenancy deposit scheme works

In the event of a dispute that cannot be resolved between the landlord and the tenant, either party (or Wilkins Hammond) can instigate adjudication with the Independent Case Examiner (ICE). This must be done within 28 working days of the tenancy ending and the ICE must be sent the following:

The signed tenancy agreement,
Inventory and record of condition for both check in and check out procedures,
Evidence that the claimant has tried to negotiate a settlement,
Tenancy registration number and details (Assured Shortholds only).

We must send the deposit (less any amount agreed by the parties and paid over to them) to the ICE within ten working days of the dispute being registered.

Once the ICE receives the documentation and deposit, the dispute will be adjudicated with 28 days. Following adjudication, the deposit monies will be distributed within ten days.

Where the amount of the deposit in dispute is £5,000.00 or more, the ICE does not generally adjudicate these cases, although he may do so at his own discretion and with the consent of the parties. Alternatively the parties must agree to submit to formal arbitration through the engagement of an arbitrator appointed by the ICE, the cost of which will be borne equally between the landlord and the tenant.

In all probability, you will not need to call on the ICE. However, if you do, it is important that we organise a professionally prepared inventory and record of condition for the landlord before the tenancy commences. The record of condition must be signed personally by the tenant at check in and check out.

What the tenancy deposit scheme costs

There is no cost to the Landlord.

Benefits

The deposit is fully protected and insured.
The deposit is returned promptly if there is no dispute.
In the event of a dispute it is quicker and less stressful than going to court.
The property can be re-let whilst adjudication is taking place.
There is a guaranteed reimbursement of loss if the dispute is found in the landlord’s favour.
There is a guaranteed reimbursement of loss if the dispute is found in the tenant’s favour.

Further information on the Tenancy Deposit Scheme can be found by clicking here

Please contact us on 01246 232853 or via email at moc.dnommah-snikliw@seiriuqne to discuss the Tenancy Deposit Scheme.

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