The Tenancy Deposit Scheme is part of the new legislation brought in by the Housing Act 2004 and came into effect on 06 April 2007
From 06 April 2007 all deposits received by letting agents and landlords from tenants for Assured Shorthold Tenancies (ASTs) in England and Wales must be protected by a Government-authorised Tenancy Deposit Protection Scheme.
The legislation has come about to help protect deposits paid by tenants and make sure that they are dealt with fairly and receive all or part of the deposit back where appropriate. All deductions from the security deposit must now be agreed by both the landlord (or letting agent) and the tenant.
At Embrace Estates, once you have paid your security deposit at the start of your tenancy, this will be transferred to the Deposit Protection Service within 14 days of the start of the tenancy. It will be held here until the end of your tenancy.
The Deposit Protection Service - Custodial Scheme
Once the tenancy has started and the deposit has been received, the scheme will notify you of receipt of the deposit. They will also send you a Reference Number / Refund Number that you must keep in a safe place until the end of the tenancy. At the end of the tenancy, if the both the landlord and tenant(s) agree how the deposit should be repaid, Embrace states will notify the scheme administrator, who will pay out the money as agreed, plus any interest earned on their share. The reference number sent to you at the start of the tenancy will be needed to confirm that you agree with the apportionment. This refund will happen within 10 working days of the end of the tenancy and will be paid by bank transfer or cheque. An independent Alternative Dispute Resolution (ADR) will resolve any disputes relating to returning deposits.
For further information about the scheme, please visit www.depositprotection.com or call 0870 707 1707