Agents Information & FAQs 

 

  • Information for agents
  • FAQs: Protecting tenancy deposits
  • FAQs: I want to join TDS
  • FAQs: I have a dispute
  • FAQs: I have a complaint 

Information for letting agents

The Tenancy Deposit Scheme (TDS) is a multi-award winning provider of tenancy deposit protection, protecting over 1 million deposits in England and Wales.

Here you will find the answers to some of our most Frequently Asked Questions about protecting deposits, raising disputes, and joining the scheme; click on one of the FAQ tabs on the left to read more.

You can also find a wealth of information about TDS across this website, and beyond. 

Click here to read our selection of Guides for Letting Agents

Click here to read our library of dispute case studies

Click here to read our library of publications

Click here to visit the TDS YouTube channel



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Protecting tenancy deposits FAQs

What is tenancy deposit protection?

Deposits on assured shorthold tenancies (AST's) must be protected with a government approved scheme.

The landlord or agent must protect the deposit and issue prescribed information to the tenant within 30 days of receiving the deposit.

If there is disagreement over how the deposit is divided at the end of the tenancy, a dispute can be raised with the scheme and an impartial adjudicator will decide how the deposit should be divided based on the evidence provided.

Tenancy deposit protection is a requirement of the Housing Act 2004.

What is the Tenancy Deposit Scheme?

Tenancy Deposit Scheme (TDS) is a government approved tenancy deposit protection scheme in England and Wales operated by The Dispute Service Ltd. The Dispute Service is an industry owned, not for profit company.

How does TDS protect tenancy deposits?

TDS is an insurance backed scheme. This means the agent or landlord holds the deposit during the tenancy and the money is covered by our insurance. 

Deposits are only ever sent to us when we are asked to adjudicate in a dispute.

What is prescribed information?

You must provide the tenant with specific details of the deposit protection and a leaflet explaining how TDS works. This is called prescribed information. It must be issued within 30 days of receiving the deposit.

Click here for a prescribed information template and scheme leaflet.

What is a "tenancy deposit"?

A tenancy deposit is a sum of money which a landlord requires a tenant to pay at the start of the tenancy or which the landlord holds over from a previous tenancy with the same tenant. The money is security in case the tenant does not meet their obligations in connection with the tenancy.

Which deposits need to be protected?

All deposits taken by landlords in relation to assured shorthold tenancies (ASTs) in England and Wales must be protected. This includes 'pet' deposits and 'garage' deposits, but does not include holding deposits. (See more about these types of deposits below)

Do holding deposits need to be protected?

No. A holding deposit is not a tenancy deposit for the purposes of section 212 of the Housing Act 2004 and does not need to be protected. 

Do 'pet deposits' need to be protected?

Yes, if it is being paid to a landlord for the purpose of ensuring that the house is properly cleaned at the end of the tenancy, and with a view to returning it to the tenant if the house is clean, then it is a deposit that needs to be protected "Pet deposits" are a form of tenancy deposit within the definition contained in section 212(8) of the 2004 Housing Act. 

Do 'garage deposits' need to be protected?

Yes, if it is being paid to a landlord for the purpose of ensuring that the garage is properly maintained, and with a view to returning the deposit to the tenant if it is in good order, then it is a deposit that needs to be protected. "Garage deposits" are also a form of tenancy deposit within the definition contained in section 212(8) of the 2004 Housing Act. 

How should deposits paid in instalments be protected?

TDS members should protect the deposit, even if it's paid to them in instalments. You should protect the deposit on the basis of the total amount of the deposit you expect to receive for the tenancy over its life and ensure that the instalments are detailed in the tenancy agreement. If an instalment isn't paid and this will affect the sum registered, please contact us so we can adjust the certificate.

What happens when the deposit is paid on behalf of the tenant?

The person paying the deposit on the tenant's behalf will be considered a “relevant person”. This is a person, company or organisation who, in accordance with arrangements made with the tenant, paid the deposit on behalf of the tenant e.g. a local authority, employer, parent or guarantor. This relationship does not need to be entered on to the TDS tenancy database, but the landlord will to provide this person with prescribed information.

What does the 'Superstrike' ruling mean to me?

Full guidance from TDS on the Superstrike vs Rodrigues case is available here.

In the Superstrike vs Rodrigues case a statutory periodic tenancy was considered to count as a new tenancy. 

If you hold a deposit taken on an assured shorthold tenancy before 6 April 2007 and it remains in place and unprotected when a statutory periodic tenancy arises you should:

- protect this deposit with an authorised scheme now;

- issue Prescribed Information now; and- retain records to demonstrate how and when you did this. 

This could help show that you are complying with the legislation as now interpreted by the Court of Appeal.

However, it is the case that you will have protected the deposit late and will also have served the Prescribed Information late. In these circumstances you can only issue a section 21 notice if you return the deposit to the tenant in full, or with agreed deductions.

If the deposit is already protected it is advisable to issue new prescribed information if the tenancy becomes statutory periodic. 

What are my requirements when I join TDS?

The law requires that you comply with the initial requirements of a scheme. Our initial requirements are:

- The Member must enter on the TDS tenancy database all the required details about a deposit if that deposit has not previously been protected.

- After the Member has entered all the required details relating to a deposit on the TDS tenancy database for the first time the Member does not need to do so again. This Scheme has no initial requirements for Renewed ASTs and/or Statutory Periodic Tenancies if all details about the deposit were entered on the TDS tenancy database at the start of a prior tenancy.

- Where an AST with a deposit began before 6 April 2007 and is replaced with a Renewed AST or a Statutory Periodic Tenancy after that date, the Member must meet the Scheme's initial requirements. The deposit is deemed to have been received at the start of the Renewed AST or Statutory Periodic Tenancy, the statutory time limit begins, and all required details of the Deposit must promptly be entered on the TDS tenancy database.

I want to join TDS - FAQs

Who can join TDS?

Any lettings agent, housing association or corporate landlord with tenancies in England and Wales may apply for Membership.

A landlord who is not a Corporate Landlord should join using TDS for Landlords membership. 

What are the requirements of joining?

To become a Member, applicants must: 

  • have a Client Account with Client Protection Insurance; 
  • hold membership of an approved body (lettings agents);
  • pay the required Membership Subscription to TDS when it is due;
  • agree to abide by the Rules of this Scheme and with the Adjudication Rules. 

Which are the approved bodies?

The approved bodies are:

Housing Associations must be registered with the Homes and Communities Agency.

I am a letting agent or housing association. How much does it cost?

We offer an annual subscription (from 1 April to 31 March) based on an agreed number of deposits.

After one year of membership and subject to low disputes useage, generous discounts on our headline rates are available, as well as a loyalty bonus for continuing to be a TDS member.

Find our headline rates for letting agents here 

Find our headline rates for housing associations here.

I am a corporate landlord with over £100,000 of deposits. How much does it cost?

Because of the bespoke nature of your business, corporate landlords are individually priced in consultation with our insurers. You can join by completing the "application for individual terms" form. When we receive it, we will get back to you with a price within ten working days. TDS is the only not for profit scheme, reflected in the highly competitive prices we offer our members.

Download an application for membership on individual  terms

How do I join TDS?

To join TDS as a letting agent, housing association, or corporate landlord please complete and return an application form. We will confirm the success of your application within 10 working days. 

A landlord who is not a Corporate Landlord needs to join using TDS for Landlords membership.

I am a letting agent without approved body membership. Can I join?

We normally only allow membership for letting agents who hold approved body membership. If you are not a member of an approved body please complete the "application for individual terms" form.  We will carry out an individual assessment to establish your suitablity for TDS membership. 

Download an application for membership on individual  terms

I have a dispute FAQs

What will happen if I ask TDS to resolve a deposit dispute?

If all the parties agree to TDS resolving the dispute, TDS will appoint an impartial adjudicator to make a legally binding decision, normally within 28 days of receiving the parties’ consent and evidence. If one of the parties does not reply to our notification, they are treated as consenting. In all these cases, the adjudicator will normally make a decision based on the evidence received within 28 days after the deadline for giving evidence.

The disputed amount must be paid to TDS to hold during the dispute resolution process, and any undisputed amount repaid to the tenant. When adjudication is complete, TDS will pay the money to the parties according to the decision of the adjudicator.

How do I start a dispute?

To start the dispute process you must complete a Dispute Application Form. The quickest and easiest way to do this in online. After you have raised a dispute the other party will be invited to respond, and be given 10 working days in which to do so. If you are unable to raise a dispute online, please call our customer contact centre for further guidance.

How do I respond to a dispute?

To respond to a dispute you must complete a Dispute Response Form. The quickest and easiest way to do this is online. Once you have been invited to give your response you have 10 working days in which to provide your evidence. If you are unable to respond to a dispute online, please call our customer contact centre for further guidance.

How long do I have to raise a dispute?

You must raise your dispute within 3 months from the lawful end of the tenancy. Disputes received after this time will be rejected unless there are very good reasons.

How much money can be disputed through TDS?

We can only award money up to the value of the the deposit registered. There is no minumum dispute amount required, however if it is a small amount the parties should consider whether it is enough to justify the effort of using the dispute process.

What evidence should I submit?

For detailed information read our guide 'How to present your case to the TDS adjudicator'.

The adjudicator works on the basis that the deposit is the tenant's money, and will only award money to landlords and agents if the evidence provided justifies that claim. 

Documentary evidence is usually essential to prove a case, such as: 

  • Tenancy agreement - this sets out the obligations of both parties and is essential for any case.
  • Check-in report and/or inventory - to show the property’s condition at the start of the tenancy
  • Check-out report - to show the condition of the property at the end of the tenancy - photographs or videos used in conjunction with an inventory to support the condition of items in the property.
  • Rent statement - to show what the tenant paid, for what periods of time and what is owed (if anything) 
  • Estimates - to show the approximate cost of carrying out work/replacing things. The more detail, the better. 
  • Quotes - show the quoted cost of carrying out work or replacing things. 
  • Invoices - show the cost paid/to be paid for carrying out work/replacing things 
  • Receipts - show the cost that the landlord or agent has paid out

 

What evidence should I not submit?

Do not submit documents if they don't relate to the dispute. Adjudicators examine all of the evidence you send and if it is not relevant the process will take much longer than necessary.

Who will see the evidence I submit?

All documents you give to TDS in support of your claim will be made available for the parties to the dispute to see via our Online Evidence Portal.  It is your responsibility to make sure that you do not send us evidence which you do not want the other parties to the dispute to see.

Should I go to court rather than use TDS?

Either party may go to court if they prefer. We can only deal with their dispute if both tenant and landlord agree they want us to. However, if the landlord refuses to make a decision, we will deal with the dispute anyway. Most people prefer to come to us because they feel it will be quicker, cheaper and less stressful. Like the courts, we are independent and authoritative. We can deal with proposed deductions from a deposit, but we cannot award compensation or consider other matters away from the deposit.

I am in dispute over other matters, not just the deposit. Can TDS help?

No. TDS is not able to consider ‘set-offs’ or ‘counterclaims’ brought by either party. If there are other matters away from how the deposit is divided, we will not be able to form a judgment about these  and you should take independent legal advice on the best way to resolve them.

I have a complaint FAQs

I have a complaint about the service I have received at TDS

In the first instance, does your complaint relate to the progress of a specific case before we have made an adjudication decision? If so, we will have sent you updates that show the name and contact details of the person responsible for progress. Please contact them first.
If your complaint does not relate to a specific case, please contact our Contact Centre on 0845 226 7837.

The Contact Centre will help with your question or escalate it to a TDS member of staff, who will contact you directly. If you remain up happy, please send us your complaint within 28 calendar days of the problem arising. Please do this by email or letter using the addresses on the front of this leaflet. Putting your complaint in writing will help us understand it better and respond fully. Our email address for complaints is: complaints@tds.gb.com

Click here for more details about the complaints procedure.

 

I have a compliant about a recent adjudication decision

We make our adjudication decisions after considering the evidence we receive in a careful and unbiased way. By referring the dispute to TDS you agree to be bound by the adjudicator’s decision. We are not able to reverse a decision made by an adjudicator because the disputed deposit will have been paid to the parties and we have no legal authority for retrieval or redistribution.

The complaints procedure allows us to consider any concerns you may have about the way TDS handled your dispute. We can only accept a complaint if:

- the adjudicator did not take into account evidence we received within the timescales stated in the Scheme Rules; or

- the adjudicator made an error in Law; or

- the adjudicator made an error in fact.

Click here for more details about  complaints procedures.


RSS Feed Latest TDS News

Local projects for landlord and tenant education receive new funding from TDS Charitable Foundation

Community based projects have just been awarded over £16,000 in grants from the TDS Charitable Foundation, funding information and education for private tenants and landlords.

18th November 2014

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