Most of our customers use our free Custodial service. In this scheme, we hold the tenant’s deposit throughout the period of the tenancy, and administer the repayment when they leave.
Our Insured scheme is a little different – you retain the tenant’s deposit for the duration of the tenancy and pay us a small fee to protect it. You also manage the deposit repayment at the end of the tenancy.
Did you know the tenancy deposit cap came into effect on 1 June?
For English tenancies, The Tenant Fees Act came into force on 1 June 2019. This makes it illegal for landlords and letting agents to charge certain fees in connection with a tenancy. A key part of the new legislation is that tenancy security deposits will now be capped at the equivalent of 5-weeks' rent for assured-shorthold tenancies with an annual rent of up to £50,000, or 6-weeks' rent for tenancies with an annual rent of £50,000 or more.
These changes will apply to ALL new tenancies entered into from 1 June 2019, and any existing tenancies that are renewed on a fixed-term basis. It doesn't affect any tenancies signed before 1 June 2019 (irrespective of when the tenant actually moves into the property), although the change will apply to any future fixed-term renewals.
> You're not required to re-serve Prescribed Information
> There are no special provisions or exemptions if the tenant has a pet. The maximum deposit amount allowed must still fall within the compliance thresholds above.
In order for you to check if your custodial deposits exceed the deposit cap, we've created our Deposit Cap Calculator. Landlords and letting agents can use it to calculate how much they need to reduce their deposits by (if at all) and we'll take care of any changes that need to be made. If you have deposits for several tenancies you want to bring into line with the deposit cap, you can do this in one go, regardless of when the tenancies are due to be renewed. Simply download the Deposit Cap Calculator, follow the process below and when you're ready, send it to us. We'll do the rest!
How do I protect a deposit in your Custodial scheme?
To protect a deposit in our Custodial scheme, you need to create your DPS account first. To find out how to do this, go to our creating your account page. Once you’ve created your account, it’s a simple, three-step process.
1. Add the property to your account
The first step is to add the property to your account. You can add a property to your account at any time, even if it’s not currently let, so it’s there when you're ready to protect a deposit.
2. Create the tenancy
Step two is to create the tenancy for the property you’ve added. You'll need to provide:
› The titles and names of your tenants
› An email address or a mobile number for every tenant on the tenancy
› The rent amount
› The tenancy start date
› The tenancy duration
› The deposit amount
If you've got all that information to hand, great. If you’re waiting for more information, you can always pause the process and come back when you’ve got the missing details.
3. Pay the deposit to us
To complete the process of protecting the deposit, you need to pay the deposit to us. These days most people pay by bank transfer, as it’s the fastest and simplest way of paying a deposit to us. If you can’t use bank transfer to pay the deposit, our customer service team can tell you about the alternatives.
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