How to Protect a Tenancy Deposit With DPS
Below is a summary of how to protect a deposit using the popular Deposit Protection Service (DPS) custodial scheme.
- Use Tenancy Builder to complete the tenancy agreement. Under "tenant details", ensure all details are completed as this will form part of the prescribed information.
- On building the tenancy, the prescribed information is completed for you and the current scheme rules are added automatically.
- The parties will sign the prescribed information and the tenancy agreement when sending for digital signing.
Protecting the deposit
- Go to the DPS website https://www.depositprotection.com
- Register yourself as a landlord; you will receive a landlord's ID.
- log in to the system and add the property.
- Finally, add the tenant's details to the property.
- You will then be given the option to pay the deposit by debit card or bank transfer.
- If you choose a debit card, the transaction will be completed and the deposit protected. Transfer by bank takes a little longer (a couple of days).
If someone else paid the deposit on behalf of the tenant
“relevant person” means any person who, following arrangements made with the tenant, paid the deposit on behalf of the tenant. [s213(10) HA2004].
Assuming you selected someone else who paid on behalf of the tenant, Tenancy Builder will send the prescribed information for signature with the digital signing.
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Deposits and Tenancy Deposit Schemes
Many landlords take a deposit from tenants to hold for the duration of the tenancy. When the tenant moves out, this is returned to the tenant less any deductions permitted: typically for damage (above fair wear and tear), additional cleaning, and cover any outstanding rent. Note: deposits can only be withheld if stipulated what the deposit is being held against in the contract.