After the launch of legislation in 2007, landlords have become used to protecting their tenants’ deposits as a matter of course. Landlords have the choice of three main schemes based on custodial and insurance models. The former requires the landlord to physically pay the deposit sum into a third party bank account; the latter requires insurance to be obtained for the amount of the deposit.
Whichever option is taken, the deposit protection scheme has brought added peace of mind to tenants that their deposit is in safe hands throughout the tenancy. For landlords, it has gone some way to reducing the negative stereotype, and ultimately made the process far clearer for all involved. Continue reading