#AskTDS: "I’m a landlord – do TDS have to hold the deposit?”

AskTDS

| 9 March 2018

This article has been written in response to a landlord's query: "I'm a landlord - do TDS have to hold the deposit?"

Tenancy deposit protection legislation has been in place Northern Ireland since 2013. From the commencement of deposit protection legislation, landlords and agents had two options in how to comply with the legislation and protect tenancy deposits; hold the money themselves and register the deposit with a tenancy deposit scheme or lodge the deposit money with their scheme. In both instances, landlords must comply with the second aspect of the deposit protection legislation by serving key documents to tenants including Prescribed Information and the Scheme Leaflet. With both TDSNI insured and TDSNI Custodial, once the deposit has either been registered or lodged a certificate is produced as proof that the deposit has been protected. This certificate is commonly used as a receipt to prove a deposit has been protected and can be provided to all parties involved in the tenancy.

If a landlord wishes to hold the deposit themselves, they can join the TDSNI Insured Scheme. There is no joining fee and the only requirements are that the landlord is the property owner and the money is held in a UK bank account. Landlords ‘pay as they go’ for each tenancy protected. If a tenancy is registered on a fixed term contract and later becomes periodic, there is no additional charge and the deposit is protected for the lifetime of the tenancy. When the tenancy comes to an end, the landlord can independently discuss any proposed deductions with the tenant and return the agreed amount.

If a landlord would prefer their deposit scheme to hold the deposit, they can join the TDSNI Custodial Scheme. The Custodial scheme is completely free both to join and lodge a deposit, there are also no membership requirements. A landlord can create a membership and commence lodging deposits immediately. As tenancies come to an end, the landlord or the tenant can engage with TDSNI to advise that the tenancy has ended and how the deposit should be repaid. Once the parties agree, TDSNI pays out the deposit within 5 working days.

Whether you decide to use TDSNI Insured or TDSNI Custodial, both offer a free adjudication service where agents, landlords and tenants can all raise a dispute if the parties are unable to reach an agreement as to the return of the deposit. Our adjudication service comprises of a powerful online dispute portal allowing parties to upload evidence and easily review what’s been submitted. TDSNI has also produced a Deductions Template to help you to independently reach a resolution if deductions are to be made as well as providing guidance when setting out a claim should a dispute be raised with TDSNI. Guides can be viewed using the following link: https://www.tdsnorthernireland.com/tools-and-guides/


Tenancy Deposit Scheme Northern Ireland (TDSNI) is a government approved scheme for the protection of tenancy deposits; we offer both insured and custodial protection. We also provide fair adjudication for disputes that arise over the tenancy deposits that we protect.