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Deposit Protection

What is deposit protection?

From April 2007 the changes to the Housing Act 2004 have meant that it is now a legal requirement that any deposit held in relation to an Assured Shorthold Tenancy agreement must be protected within 14 days of receipt in an approved scheme.

What scheme does Northern Apartments Use?

Under our full management service Northern Apartments protect deposits in the Deposit Protection Service Scheme (DPS). This is a custodial scheme into which Northern Apartments pays the deposit. Click here to find out more

What is the aim of the scheme?

To ensure that tenants who are entitled to all or part of their deposit back will receive it within a reasonable period of time. The scheme has a dispute resolution element which allows the tenant and landlord an easier route for bringing about an agreement on potential deductions to the deposit.

How does the scheme work?

The tenant will pay the agreed sum of the deposit to the landlord or agent. The landlord or agent will then submit the deposit details to the scheme and arrange payment of the deposit into the scheme.

What should the tenant be given?

The landlord or agent must then ensure the tenant has the details pertaining to the protection of their deposit.

What happens when the tenancy ends?

At the termination of the tenancy agreement if the landlord and tenant have agreed on the division of the deposit then the scheme will return the deposit in the manner agreed by the two parties. In the event of a dispute the deposit protection service will retain the deposit amount until such time as a suitable conclusion has been reached by both parties, or a court decides on the division of the deposit.

Why Northern Apartments
Deposit Protection

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