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  • Tenancy Deposit Scheme Update:

    An Update from The Deposit Protection Service

    Welcome to the third update from The Deposit Protection Service.

    We've repeated the 'What Happens Next'? section of last week's email for the benefit of new registrants.

    Most Common Enquiries

    Who are Computershare?

    Founded in 1978 in Melbourne, Australia, Computershare is a specialist in the provision of volume processing, secure data management, communications and payment processing.

    Many of the world's largest companies employ our innovative solutions to maximise the value of their relationships with investors, employees, customers and members.

    Computershare has approximately 10,000 employees across the world and serves 14,000 corporations and 90 million shareholder and employee accounts in 17 countries across five continents.

    The Deposit Protection Service is a Computershare business and benefits from the 8 years experience we have of running a similar scheme in Australia.

    Text for inclusion in your AST documentation

    Many landlords and lettings agents have asked for a standard paragraph of text to include in tenancy agreements. The paragraph below can be inserted into your agreements to indicate that a tenant's deposit is protected by The DPS:

    "The deposit £ xxx will be protected by The Deposit Protection Service (The DPS) in accordance with the Terms and Conditions of The DPS. The Terms and Conditions and ADR Rules governing the protection of the deposit including the repayment process can be found at www.depositprotection.com"

    Single Claim Process

    A common query concerns what to do if a tenant goes 'missing' either at the end or just before the end of a tenancy.

    The answer is straightforward: in this type of circumstance, the landlord or agent is required by law to complete a 'statutory declaration' at least 14 days after the tenancy has ended, providing evidence of the steps that he or she has taken to contact the tenant. This is submitted to The Deposit Protection Service who have 14 days in which to try and contact the tenant. If there is no response from the tenant during this period, the claim is then settled within 10 calendar days.

    The statutory declaration must be made in the presence of a solicitor/commissioner for oaths or at a court.

    What will The Deposit Protection Service do to help Landlords and Agents with multiple properties?

    The DPS is committed to developing options that will help Agents and Landlords transact effectively and efficiently. From launch this will include the following features:

    * Property portfolio view by Agency / Landlord * 24x7 accessibility to information and transactions via online self service.

    We will continue to evolve services as The DPS grows and we already have plans to release:

    * Bulk upload of deposit submission details
    * Deposit submission payments through BACS transfer.

    What happens next?

    On the 4th April, all landlords and letting agents who have pre-registered will receive an email notifying them that The Deposit Protection Service website and contact centre are both open to take registrations. This email will give you instructions as to how to access your account online.

    Fast, Free Secure

    Step 1 - Completing your registration

    Your pre-registration details will have been populated into Step 1 of the simple, three-step process to submitting your tenants' deposits. You will have the opportunity to check that the details are still correct and to set a password to give access to your account.

    As soon as all your details have been entered, we will send you an email which you will need to acknowledge in order to finalise your registration.

    Step 2 - Your Tenancy details

    Simply complete the details of the property and the tenants. We have made this as easy as possible by only asking for essential information to enable us to protect the deposit and ensure you are legally compliant.

    Step 3 - Submitting your deposits

    Paying the deposit to The DPS could not be simpler. Internet users can pay securely online using a debit card, alternatively, both online and postal users of the service can attach a cheque and post it to The DPS.

    Once you have completed the submission process, and your payment has cleared, you will be sent confirmation that your tenants' deposits are protected. Tenants will also be notified that their money has been passed to the appropriate third party.

    Reclaiming Deposits

    At the end of the tenancy, you'll be embarking on Step 4 of the process - reclaiming the deposit. It's easy to do: both landlord and tenant agree on how the deposit is to be repaid, and jointly notify The Deposit Protection Service, either online, or by post. The deposit will then be repaid within 10 calendar days. No money can be repaid without the agreement of both parties. In the event of a dispute, The Deposit Protection Service has 28 days from receipt of evidence from both parties to adjudicate.

    Tenancy Agreements:
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