Ask TDS: "What is the most affordable deposit protection scheme for landlords?"

The Tenancy Deposit Scheme (TDS) is a government approved scheme for the protection of tenancy deposits; we offer both insured and custodial protection. We also provide fair adjudication for disputes that arise over the tenancy deposits that we protect. This article has been written in response to a landlord’s query: “What is the most affordable deposit protection scheme for landlords?”


We offer the best value deposit protection in the UK – we are not for profit, so are able to keep our prices low, without scrimping on service. You can earn even further discounts by joining the Residential Landlord Association and using the TDS/RLA’ DepositGuard.

Custodial Deposit Protection

Custodial deposit protection is a completely free method of protecting tenancy deposits. Landlords using a custodial scheme simply deposit the full deposit amount in their chosen scheme and at the end of the tenancy the deposit scheme will organise the repayment promptly.

All three government deposit protection schemes offer custodial deposit protection – including TDS. The difference lies in the unique features available. TDS Custodial is bursting with unique features designed to make deposit protection as seamless as possible, at the click of a button. For example, we offer pre-populated prescribed information, communications logs, and a tenant changeover function which can be used when one tenant moves out and another moves in, in a joint tenancy.

Insured Deposit Protection

Insured deposit protection allows the landlord to hold the deposit in an account of their own choosing for a small fee. Many landlords feel that paying a small fee is preferable due to the control it allows them, as they are in a position to pay it back to the tenant on the day they move out.

All three deposit protection schemes offer insured deposit protection – including TDS. TDS have also partnered with the Residential Landlord Association (RLA) to create ‘DepositGuard’ a reduced cost insured scheme for landlords who are a member of RLA. In the below table we have compiled the costs of insured deposit protection in all schemes.


In conclusion, custodial deposit protection is the most affordable scheme as it is free to use. For insured deposit protection DepositGuard is the most affordable for those landlords who are RLA members, those who are not members of the RLA will find that TDS has a lower price than both DPS and My|Deposits. All this, while delivering the best service too. But don’t just take our word for it.

 

 


Posted by Zoe Knighton on 7 April 2017

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