10:16 AM, 16th February 2022, About 4 months ago 5
I use the Tenancy Deposit Scheme insurance-based scheme. In my opinion, I would sooner pay a small premium to hold the deposit than have to jump through hoops trying to get payments for damages through the custodial scheme.
If as a fait accompli you make a deduction from a deposit that you hold, the onus is shifted to the tenant to dispute it, rather than you having to make an application to an adjudicator, provide reams of evidence and spend a disproportionate amount of time dealing with the case, only to find that the adjudicator’s bias is in favour of the tenant. I have never had a single tenant who could be bothered to make an application.
Today I went to register a deposit on a block of flats that we own and noticed that there were “expired” deposits that I didn’t recognise. I checked and these were for current tenancies.
I called TDS and was told that in January they had terminated protection on a number of tenancies that were over 7 years old. Bizarrely, they claim that this was due to “Data Protection” issues and that they had intended to contact landlords to ask about the status of older tenancies, but had failed to do so, and simply suspended protection. They immediately restored protection on three tenancies, but had I not noticed, protection would have been suspended indefinitely.
This begs the question as to the position the TDS is putting landlords. Technically my tenants were without deposit protection for a month, and under the Draconian laws surrounding deposit protection could potentially have a claim against me, especially if an “ambulance chasing” solicitor got involved.
They are fully aware that they had failed to contact landlords to check the status of tenancies before cancelling them, due they say to a technical error, but have done nothing about it since and are obviously just waiting for landlords to contact them.
Many of you may be in a similar position, and I would recommend that you check to ensure that all your insured deposits are currently protected. They have offered me a free registration of a new deposit as compensation.
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