A tenancy deposit will be payable by the Tenant upon signing the tenancy agreement in addition to any rents due. The purpose of the tenancy deposit is to protect the Landlord against losses (including unpaid rent) or damage to the Property during the tenancy itself.
Statutory Tenancy Deposit Protection – Where the tenancy is an assured shorthold tenancy (AST), the Landlord or Agent is legally required to ensure that any tenancy deposit taken under the tenancy is protected within one of three statutory tenancy deposit schemes within 30 days of receipt and comply with the rules of the scheme. The schemes are The Deposit Protection Service (DPS), My Deposits and Tenancy Deposit Scheme (TDS)
Tenancy Deposit Information – Where statutory deposit protection applies to a tenancy deposit, the Landlord or Agent is legally required to provide to the Tenant and any other Relevant Person, within 30 days of receipt of the deposit, the prescribed information required under the Housing Act 2004. Where the tenancy deposit is not held under a tenancy deposit scheme (e.g. non AST tenancies) it will be held by the Agent as ‘Stakeholder’ on behalf of the Landlord and the Tenant.