A tenant’s guide to mydeposits - Custodial scheme
Free tenant's guide:
mydeposits Custodial scheme explained.
If you’re a tenant navigating the intricacies of deposit protection, our mydeposits custodial scheme guide has got you covered. With the legal framework in mind, let’s break it down.
Why deposit protection matters
Since April 2007, all landlords who collect deposits from tenants under an Assured Shorthold Tenancy (AST) agreement in England and a Standard Contract in Wales (Standard Occupation Contracts replaced ASTs in Wales in December 2022) must adhere to tenancy deposit protection regulations. These regulations make sure that your deposit is safeguarded and returned to you when the tenancy ends.
Protect your deposit today.
If you have taken a cash deposit, you must protect it in a government authorised scheme within 30 calendar days.
The importance of compliance
Landlords who fail to comply with these regulations may face penalties. As a tenant, you have the right to take your landlord to Court if they don’t adhere to the legislation. The penalties they may face include:
- returning the deposit to you or lodging the full deposit with the custodial scheme within 14 days
- a fine ranging from one to three times the deposit amount
- an inability to serve a Section 21 notice to regain possession of their property
About mydeposits custodial scheme
At mydeposits, we offer a custodial tenancy deposit protection scheme designed to make sure your deposit is safe. Landlords can join this scheme and lodge your deposit, protecting your interests. In case of any disagreements, our free and impartial resolution service is available to help you reach a resolution.
How your deposit is protected with mydeposits
When your landlord takes a deposit from you under an AST agreement, they must comply with the following steps:
- Protect the deposit with a government-authorised tenancy deposit protection scheme within 30 days of receiving it from you
- Provide you with proof of deposit protection (prescribed information) within the same 30-day timeframe
Understanding the prescribed information
By law, your landlord must provide you with essential information about your deposit, its protection, and the resolution process. This prescribed information must be signed by your landlord and should accurately represent your tenancy agreement.
Navigating the end of tenancy
When your tenancy comes to an end, you should request your deposit back from your landlord. Both you and your landlord should communicate to negotiate the return of the deposit, factoring in any agreed deductions. Once both parties are satisfied, the landlord initiates the release process with mydeposits.
Handling the resolution process
If there is an issue about deductions or returns that requires resolution, you can raise the issue only during the deposit release process. The mydeposits resolution service is designed to facilitate resolution without the need for court involvement. Both parties provide evidence, and an impartial adjudicator reviews the case to make a binding decision.
Remember the details
This guide and leaflet form part of the prescribed information. Keep them safe with your other tenancy documents.
Navigating issues requiring resolution and deposit protection is a collaborative effort. At mydeposits, we aim to provide clarity and support, making sure your deposit and rights are safeguarded throughout your tenancy.