On 6th April 2007 the new Tenancy Deposit Scheme (TDS) was introduced to safeguard tenants’ deposits/bonds given to the landlord or letting agent at the start of a tenancy.

Many tenants in the private sector give their landlords a deposit against possible non-payment of rent or damage to property. When the tenancy comes to an end, there is usually no disagreement about the return of the deposit. Sometimes however, a dispute can arise causing much hardship and inconvenience to both the landlord and the tenant.

The Tenancy Deposit Scheme for regulated agents (TDSRA) has been developed to ensure that the deposits we hold as agents are protected and that disputes are resolved swiftly and impartially.

From 6th April 2007, both landlords and letting agents can only take and hold a deposit if protected by the Tenancy Deposit Scheme.

Three schemes are available to landlords and lettings agents:

• Custodial Scheme

  The deposit will be held by the scheme for the duration of the Tenancy with an independent arbitrator reconciling the situation in the event of a dispute arising.

• National Landlords Association

  This scheme will be in conjunction with Hamilton Fraser insurance company requiring the landlord to pay a premium. This will entitle landlords to hold bonds for the duration of the tenancy but in the event of a dispute, the matter will be subject to the adjudication of the ADR (Alternative Dispute Resolution).

• Tenancy Deposit Scheme (TDS)

  Lettings agents who subscribe to the TDS will be entitled to hold, as stakeholders, all tenants’ deposits/bonds. In the event of a dispute, the TDS will arbitrate in reconciling the situation.

MOGINIE JAMES LIMITED ARE MEMBERS OF THE TENANCY DEPOSIT SCHEME (TDS) AND AS SUCH ARE REGULATED TO HOLD ALL TENANTS’ DEPOSIT/BONDS.

IMPORTANT NOTE:
THE PENALTY FOR NOT CONFORMING TO THIS LEGISLATION WILL MEAN THAT LANDLORDS AND AGENTS WILL NOT BE ABLE TO ISSUE A SECTION 21 NOTICE REQUIRING POSSESSION OF THE PROPERTY WHICH MAY INCUR A FINE OF UP TO THREE TIMES THE VALUE OF THE DEPOSIT/BOND.

To find out more, please visit WWW.TDS.GB.COM