Tenancy Deposit question

[Ferntree]

Hi all,

 

Just a quick question regarding my tenancy deposit held by the Letting Agency as Stakeholder (the deposit is registered with the TDS as well) : Does this mean that the Letting Agency is holding the money in Trust in a separate bank account?

 

I was under the impression that in general tenancy deposits should be physically forwarded to one of the Deposit Schemes.

 

Please advise.

 

Many thanks for your help in advance.

[Minkiesmum]

Once it's registered under the TDS scheme THEY hold it. I actually got a bit of deposit back in my last private tenancy as they hold it until both parties are satisfied with the amount to be returned. My letting agent tried to say I owed some of it for outstanding electricity (along with the obligatory cleaning rubbish you always get stung for whether you clean or not) and I'd had a key meter so it was utter rubbish which I told the TDS people and so it was released to me and not the agent. So it's a better way of doing it as to try and argue the toss with letting agents you'll never win with them.

 

Lynda~

[seanamarts]

It gets paid into a custodial TDP scheme’s bank account

[Ferntree]

Thank you for your prompt response @ Minkiesmum and @ seanamarts.

 

According to my AST contract, it specifically states in there that the Letting Agent is a member of the TDS, and that my deposit is held by the named Letting Agent as Stakeholder. Thus from this stipulation, I thought it meant that my Letting Agent holds the money in one of their accounts but separate from their business funds.

[Lea_HTH]

TDS is an insurance based scheme. LL/LA can do whatever they like with the money during the tenancy - it's not actually handed over to TDS. In the event of disputes, TDS mediate.

[raydetinu]

Unless its the DPS scheme, where they actually do hold the deposit monies; most are insurance backed.

There are four TDS schemes.

DPS now do insurance as well as custodial.

Capita are the new ones.

[Lea_HTH]

OP stated deposit was 'registered with TDS'. TDS is short for Tenancy Deposit Scheme.

 

My response pertained to that - not any of the other schemes. So unless OP was confused about where his/her deposit was registered, my answer was correct.

[Minkiesmum]

Oh, I might be wrong then. All I do know is they weren't allowed to have it all UNTIL it had been agreed between myself and the agent and the way the letters/emails were worded while we WERE in dispute it made me think they (the TDS people) held the money. Else what would be the point ? The agents could do as they always did and hold onto the lot.

 

Lynda~

[stu007]

Hi

 

This link will give you more information on Tenancy Deposit Protection: https://www.gov.uk/tenancy-deposit-protection/overview

[raydetinu]

I used TDS as a generic term, but Lea you are correct as usual.

Stu has the link to them all.

[mariner51]

Many occasional posters use & freely interchange TDS and DPS for generic tenants deposit scheme and do not know the difference between insurance based schemes and custodial schemes.

For Ins based schemes, an annual Ins premium is paid to insure the stated deposit value, The cash deposit can then be used by LL for any purpose. The Ins scheme provides ADR and repays deposit as reqd.

If LA takes deposit, the Ins Policy should be placed in a ring-fenced client (LL) account to protect from LA bankruptcy/disappearance.

With custodial schemes, the cash value of deposit received must be credited to LLs dps account within 30 days of receipt. dps provide ADR

In either scheme no interest is payable to T.

T protection is afforded by requirement for LL to ensure prescribed info for deposit protection scheme used is provided.

 

That is my understanding, someone tell me if I am in error.