Frequently asked questions

1 How do I join TDS?

1.1 All landlords and regulated agents are eligible to be considered for membership of TDS. They must complete application form: TDS 1A for agents, or TDS 1B for landlords.

1.2 All Members of Approved Bodies (ABs) will gain membership unless they fail to meet essential criteria.

1.3 Applicants may be subject to approval and credit checks by TDS Ltd.

1.4 Members are contractually bound to comply with the conditions of TDS. Failure to do so could lead to termination of membership.

1.5 We would like to become a TDS member. How can we find out what we will have to pay?

Please go to our website www.thedisputeservice.co.uk where you will find details of how to join the TDS scheme. Once we have your completed application form, we will be able to calculate your subscription.

1.6 Can we recover the costs of our subscriptions?

Yes. The Housing Act 2004 is silent about recovery of the costs from either landlords (for agents) or tenants. Members are free to re-charge their costs. They may do so on whichever basis most suits their method of operation (TDS D Operational procedures and advice for members, Section A paragraph 2). You are advised to consider the implications of the Unfair Terms in Consumer Contract Regulations in drafting clauses for inclusion in tenancy agreements.

If you are a member of professional body, you should follow their advice.

1.7 Why should I join TDS?

TDS was designed specifically for regulated agents and corporate landlords. We are confident that it is the cheapest insured option for deposit protection for the majority of its members.

1.8 How long will it take to process my application for membership?

We aim to process and, where they have been accepted, all completed applications within ten working days. However, we sometimes need to make further enquiries, or to return forms which have not been properly completed, which will extend the period.

Applications from corporate landlords will take longer than ten working days. We have to submit them to our insurers for individual consideration, and we are subject to the insurer's internal procedures.

If you have yet to apply, please ensure that you fully complete the form and supply any documentation required.

1.9. We are a new letting agency and about to apply for membership of TDS. We are waiting our ARLA/NAEA/NALS/RICS/Law Society membership to come through. Should we hold off applying for TDS membership until we have the membership or should we mail in the TDS application form now stating that membership is pending?

You will need to have applied for, and preferably gained, membership of an approved tenancy deposit scheme before you start taking deposits. If you apply to join TDS whilst you are unregulated, we will not be able to accept your application.

1.10. Can we belong to more than one tenancy deposit protection scheme?

Yes.

2 What does the Tenancy Deposit Scheme cost?

2.1 How much does it cost to join the Scheme?

Please see the “Fees” section on the website.

2.2 Are unregulated agents eligible to join TDS?

No.

2.3 Can we recharge the subscription?

Yes. The Housing Act 2004 is silent about recovery of the costs from either landlords (for agents) or tenants. Members are free to re-charge their costs. They may do so on whichever basis most suits their method of operation (TDS D Operational procedures and advice for members, Section A paragraph 2). You are advised to consider the implications of the Unfair Terms in Consumer Contract Regulations in drafting clauses for inclusion in tenancy agreements.

If you are a member of professional body, you should follow their advice.

2.4 We only manage a handful of deposits. Should we join this Scheme?

It is probably not worth your while joining this Scheme. You would probably be better served by one of the other designated schemes.

2.5 Who gets the interest on the deposits?

It doesn't matter, but it must be specified in the tenancy agreement.

2.6 Is there a reduction in the fee for those who join part way through the year?

If they join in the second half of the year i.e. after 1 October, the Board may offer to reduce their subscription for that year.

2.7 Is there a charge if we submit data for entry on to the tenancy database on paper rather than electronically?

Yes. Please see “Fees” section on the website.

2.8 I am a landlord of property in the UK, but I am resident abroad. I do not use a managing agent. Can I join TDS?

No. We need to know that the deposit is held in a ring-fenced client account in the UK, and that it can be submitted to us without delay.

3 What requirements does TDS have?

3.1 Do we have to incorporate all the terms set out in TDS G - "Clauses for inclusion in tenancy agreements and terms of business?"

Yes. We will provide you with these when you join the Scheme. They ensure that you have all the prescribed and relevant information to give to the tenants. By putting the appropriate clauses in the tenancy agreement, you ensure that it is clear to tenants how the Scheme works and what your liabilities are. If you attach the prescribed information as instructed, you ensure that tenants have it within 14 days of taking the deposit as the Housing Act 2004 and the rules of TDS require, and without further ado. Where the agent who took the deposit is not going to hold it thereafter, i.e. is going to hand it on to the landlord, the tenancy agreement and terms of business need to make this clear.

3.2 Does the agent have to hold the deposit as stakeholder?

Yes. The legislation effectively does away with the ability to hold the deposit as "Agent for the Landlord" and to use at the landlord's discretion. It prohibits the holder of the deposit from paying out the deposit without the agreement of the landlord and tenant. A disputed deposit can only be paid out following a decision by an adjudicator or the courts. Even if a landlord wishes to insist that the agent holds the deposit as "Agent for the Landlord", the agent would not be able to release any of the deposit to the landlord, at any point during the tenancy.

3.3 Does the Member have to send in the whole deposit if there is a dispute?

The total amount in dispute must be forwarded to TDS. This will often be the full deposit. Where there is agreement over part of the deposit then this must be returned to the parties in accordance with that agreement and the amount in dispute forwarded to TDS. i.e. the deposit holder must send the full deposit, less any amounts already agreed by the parties and paid over to them. Failure to do so will not delay the adjudication but the company will take appropriate action to recover the deposit and discipline the Member.

3.4 Why does TDS want members to supply their bank details when they apply to join? Where they are agents, does it mean that you will return the money for them to distribute to the relevant parties?

Having members' bank details on record enables us to pay them more promptly following an adjudication.

It is also useful to have agents' details because sometimes the ICE makes an award to them. It also happens that agents, with the landlord's agreement, ask for money awarded to a landlord to be paid to them for convenience or to cover expenditure they have already made in connection with the matters in dispute.

3.5 Is there a minimum level of cover for Professional Indemnity insurance?

We have adopted the same requirements as ARLA: £150,000 level of cover if fee income is up to £150,000; or £500,000 level of cover if fee income is over that sum.

4 What about tenancies which fall outside the legislation i.e. non-Assured Shorthold Tenancies (non-ASTs)?

4.1 The majority of our tenancies are not AST tenancies, as the annual rent is higher than £25,000. We wish to remain covered by a dispute resolution scheme for all our tenancies, but I understand if we join TDS that our contractual tenancies will be excluded - is this correct? We are unsure if we can be members of both schemes as it seems that one takes over from the other..

We offer a dispute resolution service for all tenancies for which a member holds the deposit.

It is correct that the Housing Act 2004 prescribes only that deposits taken on ASTs must be protected by an approved scheme such as ours. However we are happy to deal with deposit disputes arising out of non-AST tenancies as we used to do under TDSRA - as long as the tenancies have been registered on our tenancy database and the correct clauses have been included in the tenancy agreement. These can be found in TDS G "Clauses for inclusion in tenancy agreements and terms of business" can be found in the members section of the website. Please log in as a member, then click on "downloads"

4.2 Will we need to enter tenancy details of all non-ASTs?

No. Only those where you want the deposits to be protected, and to have access to TDS for resolution if there is a dispute over their return. We wouldn't require you to enter details of tenancies which start(ed) before 6 April 2007 unless and until they are renewed or extended.

4.3 Will you deal with disputes arising in Scotland and Northern Ireland?

Yes. We offer a dispute resolution service for all tenancies in the UK for which a member holds the deposit. Firms who only operate in Scotland and Northern Ireland are eligible to join TDS and to register their tenancies as non-ASTs.

For further information please see “What has happened to the Tenancy Deposit Scheme for Regulated Agents?”

5 What is the status of deposits paid in advance - usually by students?

5.1 Full deposit was taken before 6 April 2007 (e.g. in March 2007) for an assured shorthold tenancy starting after 6 April 2007 (e.g. in September 2007). Will the deposit need to be protected under a Government-authorised scheme and, if so, at what point?

No deposit taken before 6th April 2007 for a tenancy starting after that date will be required to be held under an authorised scheme.

5.2 Full deposit was taken on or after 6 April 2007 (e.g. May 2007) for an assured shorthold tenancy which started after 6 April 2007 (e.g. in September 2007). Will the deposit need to be protected under a Government-authorised scheme and, if so, at what point?

Yes. If a deposit is taken on or after 6 April 2007, for a property which the tenant will take up occupation in September 2007, the landlord will be required to protect the deposit in an authorised Scheme and to do so when the deposit has been paid to the landlord i.e. in May 2007.

5.3 A holding deposit (i.e. where there are no contractual obligations on the landlord, under the terms of the Act) was taken for an assured shorthold tenancy. Will the holding deposit need to be protected under a Government-authorised scheme?

No. A holding deposit is not a tenancy deposit for the purposes of section 212 of the Act and will not be required to be held under an authorised scheme. A deposit is only required to be placed in a scheme if it is money held (by a landlord or otherwise, e.g. an agent on his behalf) which is paid as security for the performance of any obligations of the tenant of this discharge of any liability, arising under or in connection with the tenancy. So if the tenancy agreement has not been entered into, and there are no contractual obligations resting on the tenant, the deposit paid is not a deposit for the purposes of the Act.

6 What are the changes to subscriptions?

Invoice for October 2010 - March 2011

6.1 Is my subscription for October 2010 - March 2011 the same as it was for April - September 2010?

The charge per tenancy will remain the same. If the number of tenancies registered on the tenancy database on the snapshot date (27 June 2010) has changed from the snapshot date of the first invoice (13 December2009), your 2nd invoice will also have changed. (The invoice will also be subject to any changes in approved body status and minimum fee levels.)

6.2 I have reduced my usage of the Scheme. Why hasn't my discount been increased since the first invoice?

Following advice from CLG, we have decided not to amend the discount factor mid-way through the current financial year. In the second half invoice, we will be adjusting subscriptions to reflect changes in the number of tenancies registered on our database on the 27 June, as published on our website. However, we cannot change the discount applied.

Nonetheless, it will still be in your interest to reduce the number of disputes sent to us this year. This will be fully reflected in the discount levels that will be used as the basis for subscriptions for the financial year beginning next April.

 

Increased subscriptions

6.3 Why did subscriptions have to increase?

We have repeated publicly many times since last summer, and in the letter to members which we sent out in November 2009, that the continuing high levels of disputes received means that our costs have increased correspondingly. In response, we have already instigated efficiencies which have cut our costs to a minimum. However, we are a not-for-profit company and our only income is from member firms. It was inevitable that subscriptions had to rise. The Board has undertaken an initial review of the company's resources and systems and has implemented changes.

6.4 Why did TDS change from an office based to a tenancy based formula?

We feel it is fairer. Previously a lettings office handling 250 tenancies would have paid the same subscription as one with 50 tenancies.

6.5 Did you consider an early payment discount?

An early payment discount was considered by the Board but rejected as potentially self-defeating. It was felt that the level of discount needed to attract early payers would be expensive to TDS and could only be recovered by higher subscriptions. However, we have agreed that members can pay their annual subscription in four instalments.

6.6 Will the new charging system be sufficient to ensure that further subscription increases are not required?

The Board has included a safety margin which it feels is sufficiently robust to ensure that subscriptions won't go up further, as long as firms ensure that they have properly terminated closed tenancies on the tenancy register and do everything possible to avoid disputes, especially over small sums. Furthermore, despite members being required to have ring-fenced client money accounts, in some cases, the disputed deposit amount is paid over but is either late or for the incorrect amount. This adds to our cost base as we require additional staff to chase members who do not follow the prescribed procedures or have to rely on our insurance policy, which leads to increased premiums.

As a result of these, and other factors, it is a difficult balance to decide how big the margin should be, as of itself it increases the level of subscriptions and could lead to a loss of members if set too high. However, TDS has put in place standby funding to avoid any short term cash flow deficits.

6.7 Why should I continue to use TDS?

TDS was designed specifically for regulated agents and corporate landlords. We are confident that it remains the cheapest insured option for deposit protection for the majority of its members.

 

Calculation and timing of subscriptions

6.8 How have you calculated the subscriptions for ARLA, NAEA and RICS members?

For the second invoice, we have based the subscriptions on the number of tenancies registered as live in the scheme on 27 June 2010.

There is a flat rate fee of £750 for ARLA, NAEA and RICS members with 50 or fewer tenancies. This is also the minimum anybody will pay.

For ARLA, NAEA and RICS members with more than 50 tenancies, the subscription is no more than £15 per tenancy.

However, we have also estimated the extent to which we might expect the Scheme to be used last year. Where we projected that a firm would be below that level, we have given them a discount. The less use a firm makes of the Scheme, the more substantial the discount will be the following year.

6.9 How have you calculated the subscriptions for NALS and Law Society members?

For the second invoice, we have based the subscriptions on the number of tenancies registered as live in the scheme on 27 June 2010.

There is a minimum fee of £1,150 for NALS and Law Society members. Over and above the minimum fee of £1,150, for NALS and Law Society members, the subscription is no more than £18 per tenancy.

However, we have also estimated the extent to which we might expect the Scheme to be used last year. Where we projected that a firm would be below that level, we have given them a discount. The less use a firm makes of the Scheme, the more substantial the discount in the following year.

6.10 The method of calculating members' subscriptions includes the possibility of a discount. Which factors influence the discount?

The discount is linked to the risk of our business; it reflects various items including the following:

• A commercial assessment of the risk to our business carried out in conjunction with our insurers.
• The likelihood of the amount in dispute not being paid over in full and in a timely manner.
• The number of disputes which are sent to TDS.

The way in which we measure this risk is to consider the effect members' actions have on our cost base, for instance:

• Despite members being required to have ring-fenced client money accounts, we have increasingly found that we have had to rely on our own resources, or our insurance policy, to enable us to return deposits to the parties concerned. Both of these increase our direct costs or insurance premiums.
• In some cases, the disputed amount is paid over but is either late or for the incorrect amount. This adds to our cost base as we require additional staff to chase members who do not follow the prescribed procedures.
• We have based our assumptions on an industry-recognised average dispute rate of 2% of all tenancies registered. However, the higher the number of disputes received, the greater number of adjudicators and support staff we need.

The Board, and many of our members, strongly believe that those members who create additional, or unnecessary, costs should contribute more. As a result, the larger discounts are given to those members who do not generate such costs.

6.11 What discounts are available?

We calculate the discount with reference to the business risks explained above and what we project to be your usage of the scheme:

* NB The discount figures are the maximum available taking into account the factors specified above. They may be reduced if members have generated additional or unnecessary costs.

6.12 How can I tell if I've been given a discount?

If you are a member of ARLA, NAEA or RICS and your subscription per tenancy is less than £15, you have been given a discount.

If you are a member of NALS or the Law Society, and your subscription is less than £18 per tenancy, you have been given a discount.

The new subscriptions take into account usage of the Scheme in 2009-10. Where we projected that a firm would make less use of the Scheme than expected, we have given them a discount. The less use a firm was expected to make of the Scheme, the more substantial the discount. I'm afraid that for commercial reasons we are unable to publish more information about how the discounts are calculated.

6.13 How can I increase my discount?

The best way is by reducing the number of disputes sent to TDS for adjudication. (Scheme members are expected to try to resolve disputes without the need for adjudication where possible.)  Also, by ensuring when a dispute is raised, that the amount in dispute and correct information is submitted to TDS.

6.14 How did you decide on these fees?

We calculated how much we would need to cover our expected costs and looked for the fairest way to apportion them. The costs include the insurance premium we have to pay to insulate TDS from the effects of a member failing to submit a deposit when required, or for the correct amount.

6.15 How can I work out how much each tenancy is costing me?

You can work out how much each tenancy is costing your firm by dividing the estimated annual fee by the number of tenancies shown on your invoice. In the vast majority of cases, the price per tenancy means that TDS remains the cheapest insured option for deposit protection.

For a large number of members the subscription is between £6 and £10 per tenancy, which we believe represents excellent value compared to other schemes.

6.16 How does TDS work out the average price per tenancy?

We divide the total estimated annual subscription i.e. the sum of all the invoices, by the number of tenancies registered as live in the Scheme on December 13 2009.

6.17 Do I have to pay my subscription all at once?

You will have settled the first invoice by 5 July. We issued an invoice for the second half of the year at the end of July. It can also be paid in two instalments. These will be due by 5 October 2010 and 5 January 2011 respectively.

6.18 Why did you send out two invoices?

To ease the transition for members to the new system and to allow us to adjust the second invoice to reflect any changes to registered tenancy numbers.

6.19 Will all agents have to pay two invoices?

Yes.

6.20 Will all agents have to pay the second invoice in two instalments?

No. You can pay it in two instalments if you wish, or you can settle the invoice in one payment - whichever is easiest for you.

6.21 When should we have received the second invoice?

You should have received your invoice by the end of the first week in August.

6.22 Will the two invoices be in equal amounts?

Not necessarily. It will depend on the number of live tenancies at the time we calculate the second invoice. If this is greater, the invoice will be higher. But if the figure is lower, the invoice will be less. The price per tenancy will remain the same.

6.23 Have all members had a subscription increase?

The vast majority have had an increase. However, for some members it has been very small as they have made little or no use of the Scheme. Please remember that you can recharge the subscription to your landlords. We are aware that a significant number of members have been charging their landlords an annual TDS fee since the inception of the Scheme.

 

Tenancies and disputes

6.24 The new system is based on the number of tenancies registered as live in the scheme. What does 'live tenancy' mean?

A live tenancy is one which is protected or registered on our database and has not been ended correctly on our database by the member firm. Please see section 7 for details.

6.25 How will I be able to check which of my tenancies were live on the database on 27 June 2010?

Once the snapshot has been taken a link will be published on your main membership homepage under the heading "Snapshot data". Please also see section 7 of the Scheme's general "Frequently Asked Questions" How do I end tenancies?.

6.26 Do the new subscriptions take into account the number of disputes submitted?

Yes. Those firms who were projected to make little or no use of the Scheme in 2009-10 when compared to the number of registered tenancies have received substantial discounts. The same proportion is applied to the second invoice. However, it does not reflect any changes in usage since the first invoice was calculated. Following advice from CLG, we have decided not to amend the discount factor mid-way through the current financial year. In the second half invoice, we will be adjusting subscriptions to reflect changes in the number of tenancies registered on our database on the 27 June, as published on our website. However, we cannot change the discount applied.

Nonetheless, it will still be in your interest to reduce the number of disputes sent to us this year. This will be fully reflected in the discount levels that will be used as the basis for subscriptions for the financial year beginning next April.

6.27 If the database Snapshot shows more live tenancies than I had on 27 June. Can you revise the invoice?

I'm afraid that we will not revise the invoice. It would be unfair not to have the same Snapshot date for everybody. However, we appreciate that some members may not have brought their records up to date. Please ensure that you close tenancies as soon as possible after they have ended as per the rules of the Scheme.

6.28 What is a reasonable or proportionate number of disputes?

That will vary from one member to another according to the number of tenancies we are protecting. We are prohibited by [the Department for] Communities & Local Government from making a direct link between fees and the number of disputes raised. What we have done is to give a discount, applied on a sliding scale, to those firms whose usage of the Scheme was projected to be below our overall expectations for 2009-10.

6.29 Why are you taking into account disputes which are not my fault because the tenancy is let-only and I'm only holding the deposit?

We appreciate that agents may hold the deposit but not manage the tenancy. It may be difficult for them to help resolve issues arising at the end of the tenancy. However, they have the advantages of holding the deposit and the responsibilities that go with it. The agent is the member of the Scheme through whose good offices we receive a dispute with which we have to deal, and the costs of which we have to meet.

6.30 Why are you taking into account disputes which are not my fault because the landlord/tenant won't listen?

We appreciate that landlords/tenants may choose to proceed with a dispute against your best advice. However, that still presents us with a dispute which we have to deal with, and the costs of which we have to meet. Our contract with [the Department for] Communities & Local Government forbids us from charging the parties. The only way we can recover our costs is through members' subscriptions.

6.31 Why don't you charge for individual disputes?

Our contract with [the Department for] Communities & Local Government forbids us from charging the parties. This is the same for the other two tenancy deposit protection schemes, too.

6.32 Why don't you fix a minimum amount for individual disputes?

Our contract with [the Department for] Communities & Local Government requires us to consider all AST deposit disputes, irrespective of size. This is the same for the other two tenancy deposit protection schemes, too.

6.33 What is a deposit dispute?

A deposit dispute is a challenge by a landlord/agent/tenant to the proposed allocation of the deposit at the end of a specific tenancy. Even if the dispute is rejected, withdrawn or resolved without our adjudication, we still incur costs.

 

Effects on members

6.34 What will happen if I don't pay my subscription?

Your membership will expire. You will have to register your tenancies with another tenancy deposit protection scheme and, amongst other things, pay TDS for the resolution of disputes which arise out of your membership once the period of protection has ended. Please see TDS 'Rules of Membership' paragraph 10.1.2.

6.35 Can we recover the costs of our subscriptions?

Yes. The Housing Act 2004 is silent about recovery of the costs from either landlords (for agents) or tenants. Members are free to re-charge their costs. They may do so on whichever basis most suits their method of operation (TDS D Operational procedures and advice for members, Section A paragraph 2). You are advised to consider the implications of the Unfair Terms in Consumer Contract Regulations in drafting clauses for inclusion in tenancy agreements.

If you are a member of professional body, you should follow their advice.

6.36 I am a corporate landlord member. Will these changes to subscriptions apply to me?

We will continue to calculate your subscription on an individual basis subject to the consideration of our insurers.

6.37 I am a private landlord member. How will these changes have an impact on me?

The fees for private landlords have been agreed and are available on application. If you are a landlord who uses an agent, this is a matter between you and your agent.

6.38 We are taking on the business of an agent who has gone into liquidation. How will this affect us?

This will not affect your subscriptions initially. The subscription for members who have taken on the business of liquidated agents will be based on their own tenancies and disputes i.e. it will not include the tenancies and disputes of the liquidated members. Only when the tenancy has ended and been re-protected by the new member agent will it then be chargeable.

 

Tenancy Deposit Scheme for Regulated Agents (TDSRA) - please also see section 4

6.39 Do you take account of TDSRA cases?

TDSRA tenancies and disputes registered to you have been accounted for within our calculations.

6.40 How do the changes affect TDSRA?

The TDSRA service was previously included in the per-office subscription paid by agents. As we are now calculating the subscription on a per-tenancy basis, we cannot continue this practice.

From 1 October 2010 many more tenancies will become ASTs as the Government has raised the ceiling for them from £25,000 to £100,000. We will publish new arrangements for non-ASTs shortly.

 

Who do I contact if I have a further enquiry about my membership subscription?

Please email: subscriptions2010@tds.gb.com

7 How do I end tenancies?

7.1 Via Website

1. Login as Member with authority to view specific tenancy.
2. Select My Tenancies from top menu bar.
3. Select associated branch by clicking on branch name.
4. Select associated landlord by clicking view.
5. Select tenancy by clicking view.
6. Select what to do at end of tenancy on the right hand side.
7. Select type by clicking the relevant radio button.
8. Please fill in the appropriate section of the form to the right of this.
9. Add a note if necessary.
10. Click Update tenancy.

NB: - At the end of a tenancy, it can be renewed, made periodic, ended without dispute, ended in dispute or deleted.

Archiving of tenancies will occur overnight, so they will still appear in the list of live tenancies until the update.

WHEN YOU SEND IN A DISPUTE, PLEASE ENSURE THAT YOU HAVE ENDED THE TENANCY ON THE DATABASE. TDS WILL NOT DO IT FOR YOU.

7.2 Tenancies with no Tenants.

Whilst reviewing tenancies, you may see a warning notice that tenancies still exist with no tenants. Immediately after this warning message, there is a link stating "Click here to resolve this issue".

• Simply click on this link and then click on tenancy.
• Then follow above procedure as from step 6 for normal ending of a tenancy.

7.3 Ending Tenancies in bulk

From Export functions use Live Database For Import it is essential that all mandatory fields are complete and valid prior to CSV Import Function back into TDS database.

• For full information please review Full Guidelines on Importing Data located on Import Functions Page.
• Review all relevant guides and examples prior to attempting to use TDS upload facility. Pay special attention to the following line items within the "Data Definition Document" 2.2.15.1.15, 2.2.15.1.16, 2.2.15.1.20, 2.2.15.1.21 & 2.2.15.1.12
• If using 3rd party software to integrate with the TDS database, please reference their technical documentation or seek advice from their technical support.

WARNING: TDS will not be liable for protection of tenancies deleted from our database.

Apendix What do these words mean? - Definitions used by the Scheme

"Accreditation Scheme" means a scheme run by a local authority, university or similar body under which landlords and agents volunteer to comply with its standards concerning the condition and management of their properties and their relationship with their tenants.

"the Act" means the Housing Act 2004, in which the statutory requirements for tenancy deposit protection are contained.

"Agent" means an individual or company who lets or manages property on behalf of its owner.

"Approved Body" means a Professional Body, Accreditation Scheme or Trade Association approved after assessment by the Company to give their members a streamlined application process and possibly other benefits.

An Assured Shorthold Tenancy (AST) is the usual form of letting for a private tenant renting from a private landlord; where the tenancy began on or after 15 January 1989; the annual rent does not exceed £25,000; the house or flat is let as separate accommodation; and is the tenant's main home.

"the Board" means the Board of directors of the Company.

"Bonding" or "bonded" means that the Member has arranged and maintains, usually through a professional body, Client Money Protection Insurance which will reimburse the public in the event of fraudulent or dishonest misappropriation of clients’ money; and that the extent of cover meets the minimum criteria set from time to time by the Board of The Dispute Service.

"Client Account" means an account set up in a bank, building society or other financial institution specifically to hold money held on behalf of clients.

"Company limited-by-guarantee" means a company which is normally incorporated for non-profit making functions. It has no share capital and has members rather than shareholders. Any surpluses are re-invested in the business.

"Corporate Landlords" means a landlord which is a company, not an individual; and holds deposits in excess of £100,000 and has assets exceeding £25million.

"Department" means the Department of Communities and Local Government (DCLG), or any other Government Department which becomes responsible for the oversight of tenancy deposit schemes.

"Deposit" means any sum collected from the tenant at the start of the tenancy, as prescribed in the tenancy agreement and held by the Member on behalf of the tenant as security against: performance of obligations under the tenancy agreement; any damage to the property etc.; and/or non-payment of rent during the tenancy period.

"the ICE" means the Independent Case Examiner.

"Landlord" means an individual or company who lets property.

"Member" means an agent or landlord who has joined TDS.

"Office(s)" means a branch or branches operated by a Member from where any letting and/or management function or activity takes place.

"Prescribed information" means information which the Housing Act 2004 Sections 213 (5) – (6) and The Housing (Tenancy Deposits) (Prescribed Information) Order 2007 require to be provided to the tenant within 14 days of the deposit having been received.

"Private Rented Sector or PRS" means the industry concerned with the letting of residential property owned by private landlords.

"Professional Body" means an organisation which acts in some form to regulate or supervise the activities of its members.

"Ring fenced" is where the money is held in such a way that it can only be used for a specified purpose. So in the case of a tenancy deposit you can use it for the purposes set out in the tenancy agreement, but not to pay for a holiday or a night out, etc.

"Regulated agent" means a firm of letting agents who belong to the Association of Residential Letting Agents, the Law Society, the National Association of Estate Agents, the National Approved Lettings Scheme, the Royal Institution of Chartered Surveyors, or other body approved by the Board of The Dispute Service Ltd and which provides to, and requires its members to take, Client Money Protection Bonding.

A "Stakeholder" is a person or firm who holds the deposit as a quasi-trustee on behalf of both parties [this may vary in Scotland] and who cannot release it without the consent of both parties.

"TDS or the Scheme or the statutory scheme" means the Tenancy Deposit Scheme run by the Company for the protection of tenancy deposits and the resolution of disputes between landlords, agents and tenants concerning the return of deposits at the end of tenancies; and which has been set up in accordance with the Housing Act 2004 and under contract to the Department.

"TDSRA" means the Tenancy Deposit Scheme for Regulated Agents run by the Company for the resolution of disputes between landlords, agents and tenants concerning the return of deposits at the end of tenancies, and for which only regulated agents were eligible to join. It has been superseded by TDS, but was continued for a time by the Company for those of its Members who wish to continue protection for existing tenancies and new tenancies which fall outside the scope of the statutory scheme. TDSRA will be terminated on 31 March 2010. After this date, Members will have to register non-ASTs in the normal way if they want deposits their to be protected, and to have access to TDS for resolution if there is a dispute over their return

"The Dispute Service, TDS Ltd or the Company" means The Dispute Service Limited, a company limited by guarantee registered in England and Wales with registered number; 4851694.

"Tenant" means an individual or company who holds or possesses property for a time in return for the payment of rent.

"Trade Association" means an association of people or companies in a particular business or trade, organised to promote their common interests.