Welcome to the fourth update from The Deposit Protection Service. Over 8000 Landlords and Letting Agents have now registered to become part of The Deposit Protection Service, and hundreds more are joining each day. Thank you to all of those who visited our stand at the Landlord Show at Olympia last Thursday - we answered queries from over 500 landlords during the event, and many of you were able to pre-register directly on our stand on the day.
Once again, we've repeated the 'What Happens Next'? section of this email for the benefit of new registrants.
If the tenant decides to remain in an existing rented property beyond the initial fixed term of 6 months, how the deposit is treated will depend on how the tenancy is continued:
No - these are not classed as ASTs, so do not need to comply with the new legislation.
The Deposit Protection Service is completely free for landlords and letting agents to use. The service works through landlords and letting agents submitting their deposits to be protected during the course of the tenancy.
At the end of a tenancy period, when the deposit is reclaimed, it will be paid back to whoever is entitled to it - landlord or tenant - along with a portion of the interest generated. Under the current legislation, interest will be paid on all deposits at Bank of England base rate minus 2.32%. If the landlord and tenant are both entitled to a portion of the deposit, they will receive the relevant portion of the interest. The remainder of the interest is used to fund the scheme.
The legislation requires that landlords or letting agents holding deposits must protect those deposits within 14 days of receiving the deposit from the tenant. The 14 days starts from when the deposit is physically received by either the landlord or letting agent.
Scheme rules will be available from April 4th.
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.
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.
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.
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.
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.
DPS representatives will be present to answer your questions at the following events:
10th May 2007
Landlord Show Manchester
The Deposit Protection Service will be exhibiting and speaking at the Landlord Show in Manchester. If you're planning on visiting the show, please do come by and say 'hello'; we'd be delighted to answer any questions you or colleagues in the industry may have. Our speaking slot is at 4pm, please register early in order to ensure you get a place.
For more information on this event, please click
17 May 2007
Landlord Expo 2007
Holiday Inn, Filton, Bristol, BS16 1QX
We have two speaking slots - 4.15pm and then again at 8pm, and look forward to meeting you.
For more information on this event, please visit:
For general information on this new legislation, please click here.
Once again, we appreciate you registering with The DPS and look forward to serving your deposit protection needs.
The DPS Team
Note: This email was sent from a notification-only email address that cannot accept incoming email. Please do not reply to this message.
The Deposit Protection Service is a trading name of Computershare Investor Services plc.