Landlords 'face TDS headache'

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Landlords must be ready to deal with potential problems this month as the first assured shorthold tenancies with deposits registered under the Tenancy Deposit Scheme (TDS) come to an end.

Leading legal firm Martin Searle solicitors has said that landlords must be ready to deal with any disputes that come up as tenancies come to an end.

The company's director, Cate Searle, explained: "As of April 6, 2007, all landlords letting property under an assured shorthold tenancy agreement are required to register the deposit with one of three government approved schemes.

"The aim is to provide clarity and security by means of having deposits either held by a third party (under the custodial scheme) or protected by payment of an insurance premium by the landlord."

However, Ms Searle said that there was a concern among many landlords that a large number of tenants could decide to dispute all proposed deductions as going through the new Alternative Dispute Resolution Service will not cost them anything.

To try to prevent as many disputes as possible, Ms Searle said that it was vital landlords make accurate inventories at the start of all tenancies.

"If a landlord wants to deduct money from the deposit they need to be able to prove the condition of the damaged item at the start of the tenancy. An inaccurate inventory can ruin any attempt to recover money from the tenant," she concluded.

Recently, the NLA suggested that as many as 3 out of 4 landlords are yet to register for Tenancy Deposit Protection.

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