Property Management
Frequently asked questions:
(please note “Landlord” also covers Letting Agent)
The Deposit Protection Service
When did the scheme come into affect?
The DPS started on 6th April 2007.
How will the DPS work?
The tenant will pay the deposit to the Landlord, who will then pay it into the scheme. At the end of the tenancy, if the landlord and tennant agree how the deposit scheme should be repaid, they will tell the scheme administrator who will pay out the money as agreed plus any interest earned on their share.
How soon must a Landlord safeguard each deposit?
Landlords will have 14 days to safeguard each deposit from the day it is received.
How can tenants check if their deposits have been protected?
Within 14 days of receiving a deposit, landlords will have to provide tennants with details of the scheme protecting their deposit. The DPS will independently confirm to all parties once the deposit has been protected.
How will the scheme be paid for?
The running costs of the DPS will be covered by the interest earned on the deposits held. If there is any interest left over, this will be paid to the Landlord or the tenant depending on whether the tenancy agreement provides for interest to be paid to the landlord or not (if the TA does not cover this it will go to the tenant). Where appropriate, the surplus interest is repaid in proportion to the amount of money repaid to each party.
When must deposits be paid back?
Once the landlord and tenant agree how the deposit should be returned, in full or in part, it must be paid back within 10 days of the scheme being notified, or in the case of a dispute ( see below) within 10 days of the scheme being notified of the ADR service’s or court’s decision.
How will the scheme return cash to the tenants?
The scheme will return deposits directly to bank accounts. Alternative repayment methods will also be available (e.g. for tenants or landlords based overseas who wish to receive payment in a local currency).
Does the DPS recognise joint tenancies?
Yes, if more than one tenant is covered in the agreement then all the tenants must nominate a lead tenant to act on their behalf. The lead tenant will be registered with the DPS when the landlord lodges the deposit.
