Are you renting a house in the UK and worried that you may not get your deposit back at the end of the tenancy? True, your worries are not out of nowhere. According to statistics of 2006 and 2007, 64% of the deposits are returned in full, 20% partly returned and 16% are withheld. The reasons given by landlords for not giving back the deposits are things like damage to property, cleaning of the property, unpaid rent or bills. However, over half of tenants who didn’t get all of their deposit back felt unfair.

That’s why the tenancy deposit protection is introduced. Tenancy Deposit Protection (TDP), as set out in the Housing Act 2004, requires that all agents/landlords protect their tenants' deposits under a statutory tenancy deposit scheme within 14 days of receiving a deposit. According to this legislation, the protection of tenant’s deposit is the landlords’ obligation, and the failure of submission of deposits will be fined up to 3 times of the amount and also will be unable to use Section 21 notice. According to a recent survey of over 1000 tenants, after 2 years of the introduction of tenants deposit legislation, they feel safer about getting their deposit. It shows that the legislation really works.

Deposit Protection Service (DPS) is the only Government-authorised custodial scheme that is free to use and open to all landlords and letting agents. It is fully funded by the interest earned from the deposits. It provides free online account for landlords to submit their deposits and free and independent ADR services when disputes concerning the deposit happen.

ADR is the abbreviation of Alternative Dispute Resolution, which is an alternative to going to court to resolve disputes between landlord and tenants.
Evidence-based: Upon receiving a notification of a dispute, DPS will issue an Agent/Landlord Evidence Form for them to provide complete and proper reasons to withhold the deposit. Then a summary of these reasons along with a Tenant Evidence Form will be sent to the tenant, and he/she fills out the form by saying agree or disagree with the landlord’s claims. Also other reasons could be added. Then such forms will be forwarded to an independent adjudicator, who have been suitably trained and thus qualified to make a decision.
Mutual agreement: An ADR service can only be used when both parties concerning the dispute agree to resolve the dispute with it and be bound to the decision. Otherwise, it would be taken through County Courts.

Using DPS to protect your tenants’ deposit is free, fast, convenient and fair. It’s a win-win deal, which helps you meet the legislation requirement and make your tenants feel safe about their money.