What Do I Need To Know About the Deposit Protection Scheme?

If you rent out a house on a shorthold tenancy, you have to put the tenant’s deposit in a Deposit Protection Scheme (TDP). These schemes make sure that tenants will have their deposit returned if they keep within the terms of the tenancy agreement, don’t cause any damage to the property and pay the rent and bills. The house owner must place the tenant’s deposit into the scheme within 30 days of receiving it.

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Schemes

There are three schemes available: Deposit Protection Service, Tenancy Deposit Service and My Deposits. They offer you two options: to hold the deposit as free – the Custodial scheme; or you hold the deposit and pay the scheme to insure it – the Insured scheme. The landlord is legally bound to join one of these schemes. If he does not, he cannot end the tenancy or regain access to the property until the deposit has been repaid. Your tenant can apply to the County Court for compensation up to three times the value of the deposit if they think it has not been protected or if they have not been given information about the scheme you have chosen for their deposit.

Vacate

When your tenants leave the property, if the terms of the agreement have been honoured and the property is in good order, the deposit should be returned within 10 days. If you are in dispute with your tenants, the deposit is protected in the scheme until the dispute is settled.

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Dispute

If you are in dispute with your tenants, you must produce evidence, which can include photos and invoices. Instead of going through the courts, you can use an impartial qualified adjudicator who will make an unbiased decision based on the evidence provided. When it comes to property management in Dublin, a company such as http://clients1st.ie/ has experience in dealing with all these issues. While a dispute is in progress, the deposit belongs to the tenant until the case has been resolved. The Alternative Dispute Resolution Service is free, and both the landlord and the tenant must agree to use the service before they can review the case.

Renting out a property is not black and white. It is best to collect all the legal information and digest it before looking for a tenant.