Deposit protection

From the 6th April 2007, all deposits (for rent up to £25,000p/a) taken by GK Whites for Assured Shorthold Tenancies must be protected by a Tenancy Deposit Scheme. This scheme applies to all landlords and letting agents renting property in England and Wales after this date.

What are Tenancy Deposit Schemes?

The Government have introduced Tenancy Deposit Schemes to ensure tenants get back the amount of deposit they are entitled to at the end of their tenancy. This encourages tenants and landlords to make a clear agreement from the start on the condition of the property making disputes easier to resolve.

How will this affect our tenants?

GK Whites already provide clear and detailed information on the condition of rental properties so disputes over deposits are kept to a minimum. However, in the event of a dispute arising, the Tenancy Deposit Scheme will make these disputes easier to resolve.

The Tenancy Deposit Scheme.

The Government have awarded three contracts to companies to run the tenancy deposit schemes. Tenancy Deposit Solutions LTD(TDSL) has been awarded one of the contracts. TDSL is a partnership between the National Landlords Association and Hamilton Fraser Insurance offering an insurance backed, deposit protection and dispute resolution scheme and has been selected by GK Whites as its preferred scheme for providing tenancy deposit protection.

How does it work?

Under the Tenancy Deposit Scheme, tenants will still pay their deposit to GK Whites.
This deposit will be retained by GK Whites in their client deposit account and we will pay a premium to TDSL to enter and protect the deposit with them. A certificate will be raised advising of the entry with relevant details and reference number.
Under certain circumstances GK Whites will enter the deposit into the Custodial scheme administered by The Deposit Protection Service(DPS).

Within 14 days of having received a deposit, GK Whites will provide details of how the deposit is being protected including

• Contact details of the tenancy scheme selected
• Letting Agents contact details
• How to apply for release of the deposit
• Information explaining the purpose of the deposit
• What to do if there is a dispute about the deposit

At the end of the tenancy

If an agreement is reached about how the deposit is to be divided, GK Whites will return all or some of the deposit. If there is a dispute, GK Whites will hand over the disputed amount for safekeeping until the dispute is resolved by the dispute resolution service

Should we fail to comply, the insurance arrangements will ensure the return of the deposit to you if you are entitled to it. If the landlord and tenant both agree to use the service offered by their scheme provider to resolve a dispute they are bound by its decision

When properties are let, but not managed by GK Whites, deposits are handed to the Landlord who will then arrange for the deposit protection.