Presentation is loading. Please wait.

Presentation is loading. Please wait.

Tenancy Deposit Solutions Sponsored by administered by www.landlords.org.ukwww.hfis.co.uk Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed.

Similar presentations


Presentation on theme: "Tenancy Deposit Solutions Sponsored by administered by www.landlords.org.ukwww.hfis.co.uk Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed."— Presentation transcript:

1 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Tenancy Deposit Solutions Mark Garner National Landlords Association (NLA) NLA Director

2 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. New Statutory Measures Mandatory tenancy deposit protection introduced by the Government; To ensure that if a tenant is entitled to get all or part of their deposit back, it is returned to them; Applies to all deposits taken on assured short-hold tenancies (AST) in England and Wales beginning after 6th April 2007; From that date anybody taking a deposit will need to join a Government-approved scheme.

3 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Types of Tenancy Deposit Protection Two types of scheme: CUSTODIAL: (default option)  Landlords using the custodial scheme will be required to lodge the whole deposit with the scheme for the duration of the tenancy.  At the end of the tenancy both parties apply for return of deposit Regulations will cover the situation where one party is uncontactable  Administrator returns funds within 10 days of agreement on how it should be split INSURANCE-BASED:  Landlords will hold the deposit much as they do now.

4 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. About Tenancy Deposit Solutions Limited Tenancy Deposit Solutions is an insurance-based tenancy deposit protection scheme operated under government contract by Tenancy Deposit Solutions Limited; Tenancy Deposit Solutions Limited is jointly owned by the National Landlords Association (NLA) and Hamilton Fraser Insurance (HFIS plc); Tenancy Deposit Solutions Limited is an appointed representative of HFIS plc, who are authorised and regulated by the Financial Services Authority.

5 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. How our scheme protects deposits The landlord is required to pay a fee to protect any deposits; The landlord holds the deposit throughout the tenancy; If there is a dispute over the deposit at the end of the tenancy, the scheme, supported by an insurance policy, will ensure that the amount to which the tenant is entitled is returned; As necessary, the scheme insurers will recover the disputed amount from the landlord; The only scheme specifically designed for landlords to hold deposits.

6 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Scheme Operation The tenant pays the deposit to the landlord as now; The landlord holds the deposit and notifies the Scheme Administrator that they have the deposit and that it should be protected; At the end of the tenancy the landlord and tenant will normally agree what happens to the deposit; If the tenant is dissatisfied they complain to the Scheme Administrator; The landlord will be required to lodge the disputed amount with the Scheme Administrator.

7 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Scheme Operation The scheme will have an alternative dispute resolution (ADR) service; A dispute at the end of the tenancy can be referred to the scheme's ADR service provided both parties agree to be bound by the ADR decision; If either party does not agree to use the ADR service, the option of referring the dispute to the courts will remain; The ADR service will be impartial and evidence-based.

8 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Scheme Operation When the dispute is resolved, the lodged money will be repaid (within 10 working days) to the landlord and tenant in accordance with agreement, dispute resolution, or court order; If the landlord fails to lodge the disputed amount with the scheme, insurance arrangements will ensure the return of the disputed amount to the tenant when they are entitled to it, and recover the amount from the landlord; Members of the scheme can protect and unprotect as many deposits as they wish, for as long as they wish.

9 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Fees Charged to landlords for registering as members of the scheme; For each deposit protected, and for annual renewal of membership; Tax-deductible against letting income; NLA members will qualify for a discounted rate.

10 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Fees for Landlords LandlordNLA member Landlord Joining Fee (per person) £58.75£47.00 Deposit Protection Fee (per deposit) £30.00£26.00 For first 4 deposits then £30 inc VAT for each subsequent one in 12 month period Annual Renewal fee (per person) £14.70 All fees include insurance premium tax

11 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Fees for Agents Letting Agent Accredited Letting Agents (ARLA, NALS, NAEA, RICS, UKALA) Joining Fee (per branch) £150.00£ Deposit Protection Fee (per deposit) £30.00£20.00 Annual Renewal fee (per branch) £75.00£50.00 All fees exclude insurance premium tax

12 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Who can join the scheme? Any landlord resident in the United Kingdom (excluding the Isle of Man) can apply to join the scheme; Letting agents can apply, as can any individual or company acting on behalf of a landlord; In all cases the individual landlord will remain legally liable for the deposit; Membership of the scheme will not be dependent on membership of any trade body or professional organisation.

13 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Sanctions If a deposit is not protected that should be, the landlord will be breaking the law; S/he will be unable to regain possession of the property using notice-only grounds for possession under Section 21 of the Housing Act 1988; The tenant can apply for a court order requiring the deposit to be protected, or for the prescribed information to be given to them.

14 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Sanctions If the court is satisfied that the landlord has failed to comply, the court must either:  Order the landlord to repay the deposit within 14 days of the issuing of the court order, or  Order the landlord to pay the deposit into the designated account held by the custodial scheme administrator. The court must also order the landlord to pay to the tenant (or person who paid the deposit on his/her behalf) an amount equivalent to three times the deposit amount within 14 days of the making of the order.

15 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Sanctions The Housing Act does not allow anything other than money to be used as a deposit; Third party guarantees (e.g. from local authority or parents of students) still a legal alternative; A landlord seeking to circumvent the regulations by taking an item other than money from the tenant may be in breach of the law.

16 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Deposits on ASTs starting before 6th April 2007 Legislation applies only to new deposits taken on or after 6th April Deposits taken before this date will not need to be protected; If a tenant remains in the property beyond the initial fixed term, it will depend on how the tenancy is continued; If the tenancy continues as a periodic tenancy, no new AST will have been created, so the deposit will not need to be protected by a tenancy deposit scheme; If a new AST is created between the same landlord and tenant for the same property (i.e. a 'replacement tenancy'), then the initial deposit that was paid prior to 6th April 2007 will need to be protected and the landlord will need to safeguard it by joining a scheme.

17 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Register now! Landlords can register their interest now; Landlords registering early will enjoy the peace of mind from knowing that they are ready to comply with the new legal requirements; Register online at:

18 Tenancy Deposit Solutions Sponsored by administered by Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed represented of HFIS plc who are authorised and regulated by the Financial Services Authority. Questions


Download ppt "Tenancy Deposit Solutions Sponsored by administered by www.landlords.org.ukwww.hfis.co.uk Administered by Tenancy Deposit Solutions Ltd (TDSL) is an appointed."

Similar presentations


Ads by Google