Tenancy Deposit Scheme

What are Tenancy Deposit Schemes?

This schemes ensures all those that are in rented accommodation (tenants) legal protect over there deposits. Thus get all or part of their deposit back when they are entitled to it. The Scheme would encourage tenants and landlords to make a clear agreement from the start on the condition of the property.
The Tenancy Deposit Scheme (TDS) has been set up to service three principal objectives: 

There are two types of tenancy deposit protection scheme available for landlords and letting agents:

• Insurance based schemes – where the landlord retains the deposit and pays a premium to the insurer
• Custodial schemes – where the landlord pays the deposit to the designated third party running the scheme

 All schemes provide a free dispute resolution service.

 How does it would work?

• The tenant pays the deposit to the landlord 
• The landlord retains the deposit and pays a premium to the insurer or pays the deposit directly to the organization running the Tenancy Deposit Scheme
• Within 14 days of receiving a deposit, the landlord or agent must give the tenant the details about how their deposit is protected including:
  • The contact details of the tenancy deposit scheme selected
  • The landlord or agent’s contact details
  • How to apply for the release of the deposit
  • Information explaining the purpose of the deposit
  • What to do if there is a dispute about the deposit

 At the end of the tenancy:

If an agreement is reached about how the deposit should be divided, the scheme will return the deposit, divided in the way agreed by both parties

If there is a dispute, the scheme will hold the deposit until the dispute resolution service or courts decide what is fair

The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will be used to offer interest to the tenant or landlord if the tenant isn’t entitled to it.

Sounds good right? Well it dose not exist in Scotland! We want to change this.

Liberal Democrat MSP for Edinburgh South Mike Pringle said:

“It’s about time that the Scottish Government took action to protect tenants from rogue landlords.

“It’s not right that households already struggling in the current financial crisis can be held to ransom by unscrupulous landlords who don’t return their deposits.

“Tenants in England already have their deposits protected by law under the self-funding Deposit Protection Service. A similar scheme should be introduced in Scotland.”

Mike Pringle lodged a motion in the Scottish Parliament on 6 May 2009 calling for the Tenancy Deposit Scheme (TDS)

This campaign is also being heavily backed by Katy Gordon Prospective Parliamentary Candidate for Glasgow North, who said:

“This is a real issue in Glasgow North.  Many tenants have told me of the struggle to get deposits back from landlords at the end of their lease.  The problem is particularly acute for those on low incomes, such as students, who don’t have the time or resources to fight costly legal battles to get their money back. 

I have been getting a really good response to my campaign to introduce a National Tenancy Deposit Scheme in Scotland.  I am working closely with student groups and my Liberal Democrat colleagues to take the campaign forward.”

We are also happy to have the support of NUS Scotland in backing the campaign.
http://www.nus.org.uk/en/Campaigns/Welfare-And-Student-Rights/Housing-and-students-in-the-community/