Landlord Legislation #1 - TDP
So if you’re considering renting out your property, you may have a bit more reading to do than you initially bargained for…
Did you know that there’s well over 100 legally binding pieces of legislation surrounding renting a property? And we’re sorry to tell you that they’re not exactly what you’d call ‘easy reading’…
Luckily, we offer you ‘Armchair Service’ at eProperty Agent, meaning we take the strain from you, looking after all the rules, regulations and ensuring your property is managed efficiently, tenanted cautiously and above all else, up to code in accordance with the law.
Why read through over a hundred pieces of legislation, when all you need to do is call us!
Not sure that you want an agent? Here’s how to deal with deposits yourself…
Tenancy Deposit Protection
As a landlord, allowing tenants into your property for the first time can sometimes be a nerve racking experience. What if they cause damage? On a day to day basis, that’s out of your control - That’s why deposits exist!
Provided you’re renting your property out on an assured short-hold tenancy, you are required to place your tenant’s deposit in a tenancy deposit protection Scheme (TDP).
These government backed schemes ensure your tenants will get their deposit back if they:
Meet the terms of your tenancy agreement (AST)
Do not damage the property
Pay rent and bills as required.
You’re required to place your tenants deposit in the scheme within 30 days of acquiring it. So how do you do that? Well, firstly there’s a few available schemes to choose from. Provided you’re located in England or Wales, you can select your favourite from the following:
(Northern Ireland and Scotland have their own separate schemes)
Deposit Protection Service
MyDeposits
Tenancy Deposit Scheme
All 3 of these schemes offer you 2 options: The scheme can hold the deposit for free (known as a ‘custodial’ scheme) OR you can hold the deposit yourself and pay the scheme to insure it (known as an insured scheme).
What happens at the end of the tenancy?
The deposit must be returned to your tenants within 10 days of you both agreeing how much they’ll get back. But what about if you disagree? In the event of a dispute, the deposit is protected within the scheme until the issue is settled. If you’re in an insured scheme, you must give the deposit to the TDP scheme. They will hold until the dispute is resolved.
Holding Deposit
If you’ve received a holding deposit from your future tenants (money to ‘hold’ a property before an agreement is signed), you do not have to protect it. Once they become tenants the holding deposit becomes a deposit, and you must protect it.
Deposits made by a third party
You must use a TDP scheme even if the deposit is paid by someone else, like a rent deposit scheme or a tenant’s parents.
Thats an overview on Deposit Legislation… daunted, yet?
Dont worry, call us! We’ve got it covered.