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Tenancy deposit protection

From 6 April 2007 all landlords must have the rent deposits in a government-backed tenancy deposit scheme (TDP) if they sign an  assured shorthold tenancy agreement. In England and Wales deposits can be registered with:

=> Deposit Protection Service

=> MyDeposits 

=> Tenancy Deposit Scheme

 Prime Locations is a member of MyDeposits and Deposit Protection Service and offers both a Insurance of Custodial solution for the landlords. The difference between them is that under a custodial scheme, the money is held by the scheme provider or under an insured scheme, the landlord can keep the money in their own bank account during the tenancy. 

Lately, a third option is available - Zero Deposit and which Prime Locations is a member of.  How this works ? With the Zero Deposit Guarantee the tenant pays a fee to cover the landlord against financial loss, instead of making a cash deposit. Tenants pay the equivalent of one week’s rent at the start of the tenancy and, if they continue to live at the property, they will also pay a £26 annual admin fee. The landlord is covered for six weeks’ rent, and any end-of-tenancy disputes are handled by an independent dispute resolution service. Tenants who owe rent or are liable for damage must pay the landlord. If they do not, following a decision by TDS, Zero Deposit steps in, pays the landlord and recovers the money from the tenant.

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