Deposit scheme 'benefits relations'

News Category: Legal

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Relationships between tenants and their landlords or letting agents should be improving under the government's tenancy deposit protection scheme, it has been suggested.

Landlordzone.co.uk editor Tom Entwistle commented that the system should have a positive effect on the relationship by taking the handling of the deposit out of the rental property owner's hands.

Agents might consider property software to help ensure they are acting in accordance with the Department of Communities and Local Government's tenancy deposit programme, which was launched in April 2007.

Nearly £900 million of tenants' deposits were safeguarded under the government's scheme during its first year of operation.

Letting agents and landlords are legally required to mange tenant deposits under the government's three providers, which are named Tenancy Deposit Protection: The Deposit Protection Service, My deposits.co.uk, and The Tenancy Deposit Scheme.

Mr Entwistle commented that the old system was working well provided both parties acted fairly and that only a minority abused the system.

How to stay legally compliant with letting agent software.