RLA landlord members will now have more choice when it comes to protecting their tenant’s deposits, thanks to a new scheme that has launched exclusively for RLA members today.
DepositGuard Custodial, launched by the RLA and partner organisation Tenancy Deposit Scheme (TDS), gives RLA landlord members the option of protecting tenancy deposits with TDS for free through their RLA membership account.
Under this scheme, TDS holds the deposit money throughout the duration of the tenancy. Key features of the scheme include a simple tenant changeover function, the ability to change a lead tenant, and a time-saving prepopulated Prescribed Information document, to name just a few.
RLA members can already access the lowest tenancy deposit protection rates on the market through the DepositGuard Insured scheme, which launched in 2012. This scheme allows landlords to keep hold of the security deposit in their bank account, which is protected by TDS for the lifetime of the tenancy for a small fee.
Landlords who take a deposit from a tenant for an assured shorthold tenancy are required to protect it in a Government-approved scheme within 30 days of receipt. Landlords must supply the tenant with specific details of the deposit protection and a leaflet explaining how TDS works, called the Prescribed Information, within that same window. Failure to do so means landlords could face court action and financial penalties.
As the only not-for-profit tenancy deposit scheme in the UK, TDS is committed to helping landlords, agents and tenants understand their rights and responsibilities by providing a wealth of guidance and documents on tenancy deposit protection and disputes. All of this information is freely accessible on the TDS website.