We have now become members of the tenants deposit scheme. As of the 6th of April 2007 it became a legal reuirement for all landlords and lettings agents to become members of the scheme. This new law radically alters the way that deposits for rented accommodation are managed.
As part of the 2004 Housing Act, the statutory Tenancy Deposit Scheme has become effective in England and Wales, and has two main objectives, to safeguard tenancy deposits paid in connection with assured shorthold tenancies, and to facilitate the resolution of disputes arising in connection with deposits.
The new legislation means that after the 6th of April, any monies taken by an agent or landlord will have to be held in a Government approved scheme, following either an insured based scheme, where the agent or landlord pay an insurance premium to an approved third party. Upon receipt of a deposit, we will inform the scheme administrator of all the details of the tenancy. Upon the completion of a tenancy, the deposit will be retuned in full, or part as agreed with all the parties. In the case of a dispute, the third party would facilitate a dispute resolution process.
A custodial scheme, where the agent or landlord passes the deposit to the scheme administrator who holds the deposit. Interest earnt on the deposit would be retained by the scheme administrator and would pay for the cost of the scheme. Upon completion of the tenancy the deposit is returned in full or part as agreed with all the parties. In the case of dispute the third party would facilitate a dispute resolution process.
The first step we would recommend is to appoint a reputable ARLA qualified letting agent who can deliver the services that the landlord needs, and the tenants deserve. Martin Thacker FARLA and Heather Revitt, have successfully passed their advanced level ARLA examinations.
As part of our Full Management Service Thacker and Revitt will:
- Prepare a detailed inventory and schedule of condition that we will ask the tenant to sign at the beginning of the tenancy.
- Make an initial six week property management visit, thereafter a management visit will be carried out every twelve weeks. This is to endeavour to spot necessary repairs that a tenant may fail to report, and to ensure that the property is being maintained to a good standard.Ensure that repairs and maintenance are carried out promptly and to a high standard.
- Visit the property and check the inventory and schedule of condition at the end of the tenancy.
- Ensure that deposits are registered with The Dispute Service, and provide the tenants with the relevant certificate and explanatory leaflet.
We endeavour to settle disputes by negotiation and discussion, and allow for fair wear and tear. If negotiations are not successful the dispute will be settled by The Dispute Service. Both parties need to agree to use the Dispute Service.
Under the Tenants Deposit Scheme landlords who continue to manage their own properties will have to join a suitable scheme and provide the tenants with the relevant certificate of registration. Failure to do so may result in the landlord being unable to enforce the tenancy agreement. By appointing an ARLA registered company you remove the stress and worry caused by having to deal with these difficult situations yourself.