The Deposit Protection Service
The Deposit Protection Service (DPS) is the government-approved custodial scheme that protects tenancy deposits in England and Wales.
The aim of DPS is to ensure that tenants get their deposit back at the end of their tenancy, as long as they have met all their obligations stated in the tenancy agreement.
The service also provides an independent dispute resolution process for landlords and tenants who are unable to agree on how much of the deposit should be returned.
The DPS allows landlords to protect a tenant's deposits with them, which ensures that it will remain safe until the tenancy ends. The fee charged by DPS depends on how long the tenancy lasts, but typically ranges from £30-50 plus VAT if paid upfront or 2 weeks' rent if you choose to pay by instalments. The DPS also offers a 'zero deposit' option, which allows tenants to pay the equivalent of one week's rent to secure the tenancy instead of a traditional deposit.
In comparison with other services, The Deposit Protection Service has lower fees than most, and provides access to an independent dispute resolution service if needed. The online platform is easy to use for both landlords and tenants, making it simple to store deposits securely without any hassle. Furthermore, The Deposit Protection Service guarantees that your deposits will be held securely for the duration of the tenancy agreement and returned promptly at the end of it
Overall The Deposit Protection Service offers a reliable way for landlords and tenants alike to ensure their interests are protected during the tenancy period.
Prescribed Information and your other obligations
Within 30 days of receiving a deposit from your tenant, you must also provide them with the Prescribed Information, as failure to do so could result in penalties that equal one to three times the amount of the deposit.
The Prescribed Information is a set of information about the tenancy that you are legally required to give to your tenants. You have to give your tenants the Prescribed Information within 30 days of receiving the deposit.
- The necessary details for tenancy deposits are as follows
- -The amount of the deposit
- -The address of the property in question
- -The name, address and how to contact the administrating party holding said deposit
Find out more about The Deposit Protection Service (DPS) here