Tenancy Deposit Scheme (TDS): Who Qualifies and What You Get
Learn how the Tenancy Deposit Scheme protects deposits for Assured Shorthold Tenancies and the strict deadlines landlords must follow to avoid penalties.
The Tenancy Deposit Scheme is a government-approved way to protect money held as a security deposit during an Assured Shorthold Tenancy.
Who it's for
This scheme is for landlords and letting agents who collect security deposits from tenants under an Assured Shorthold Tenancy.
What you get
By using this scheme, you get government-approved protection for tenant deposits. This ensures the money is handled according to official regulations.
What it costs you
You will need to pay either an annual membership fee or a fee for every individual deposit you protect. You must also ensure that the deposit is submitted to the scheme within 30 days of receiving it.
The catch to know
The most important thing to remember is that you must provide the "Prescribed Information"—which is the official documentation regarding the deposit—to your tenant within 30 days. If you fail to provide this information within that timeframe, you could face heavy financial penalties.
How to apply
- Collect the deposit from your tenant.
- Register the deposit with the scheme within 30 days.
- Provide the required Prescribed Information to your tenant.
- Manage any future deposit disputes through the scheme's official portal.