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Tenant deposit protection schemes - tenancy deposit protection (T.D.P.)
The Housing Act 2004 introduces provisions to ensure tenancy deposit protection for assured shorthold tenancies. These provisions should remove the risk of misappropriation of tenants' deposits by landlords and letting agents. Landlords have been known to keep deposits from tenants for things that were not appropriate.
The schemes are due to be in force by October 2006
The landlord is required by law to protect the tenants deposit. Most landlords take out insurance for this
If the landlord does not protect the deposit in an appropriate manner then he / she is not able to toregain possession of the property using the usual 'notice only grounds' for possession. Under Section 21 of the Housing Act 1988, a landlord can obtain an order for possession of an AST at any point after the first six months of the tenancy providing any fixed term has expired and the landlord gives the tenant at least two months' written notice. The landlord would need to obtain a court order to evict the tenant. The court would not grant this if the deposit had not been safeguarded.
Want more infomation - see a list of Q & A on tenant deposit protection schemes (TDP) ARLA's website here
If you want to cover yourself for the tenant not paying rent you can insure yourself with a rental guarentee here
If you want more information on government renting rules and legislation, then have a look on the ODPM site (Office of the Deputy Prime Minister)
