Is new tenant deposits ‘charter’ a blueprint for future rules?

first_imgHome » News » Is new tenant deposits ‘charter’ a blueprint for future rules? previous nextRegulation & LawIs new tenant deposits ‘charter’ a blueprint for future rules?UK’s most established scheme says code of practice could one day become a condition of membership for agents.Nigel Lewis18th July 20170996 Views The UK’s longest-established tenant deposits scheme says it may make compliance with its new ‘deposits charter’ a condition of membership in the future.Drawn up with the help of The Property Ombudsman, ARLA Propertymark and RICS, its Code of Recommended Practice outlines the standards it expects of The Deposit Service (TDS) members when protecting deposits.The document also spells out how agents should frame terms of business with landlords and draw up tenancy agreements, complete check in and check out reports and negotiate deposit deductions.Tenant depositsAlthough TDS says its new ‘charter’ is not compulsory and only previous rules will be enforced formally, TDS says it “does reserve the right in the future to make compliance a membership a requirement”.The company also says that, because it deals with over 15,000 deposit disputes a year, this gives it the “outstanding insight into what causes tenancy deposit disputes, and what can be done better to avoid them arising”.But TDS is careful to point out that its charter does not replace the existing and “much more substantial” deposit codes of practice already in place from the other industry organisations.“It captures, in an easy to understand statement, those ‘best practice’ requirements which we would expect TDS members to follow in their dealings with tenancies and deposits,” says Michael Morgan, head of dispute resolution at TDS.The guide may soon have to be amended by TDS. For example, although it says agents should make it clear to tenants and landlords what their charges are in relations to deposit protection and dispute management and that these should be prominently displayed on their website and in-branch, such fees are likely to be banned next year.Also, agents may soon have to ensure that a deposit does not exceed a month’s rent rather than the six-weeks that has become the norm in recent years – and something this guide would have to give guidance on should the changes included in the Queen’s Speech come to pass.Read the new Code of Recommended Practice. Michael Morgan TDS July 18, 2017Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more