Tenancy Deposit Scheme
Dlighted is the zero deposit alternative to a traditional tenancy deposit scheme such as mydeposits, the Tenancy Deposit Scheme or the DPS.
Under the Housing Act 2007 any deposits collected by landlords or letting agents must be lodged in one of these schemes within 30 days – or landlords are liable for a fine of upto three month’s rent.
Although it is compulsory for landlords to register deposits in these schemes it is not compulsory to take deposits.
What’s the difference between Dlighted and a tenancy deposit scheme?
- Dlighted is a deposit-free renting system, meaning letting agents and landlords don’t have to ask renters for an average of £1000 up front. This cuts the cost of moving home and makes it easier to find and keep good tenants.
- A tenancy deposit scheme only protects landlords against one month’s unpaid rent, or superficial property damage – and doesn’t offer any protection against legal fees. Deposit-free renting with Dlighted offer landlords £500,000 of property protection, £75,000 of rent protection and £50,000 of legal cover.
- Zero deposit renting means letting agents and landlords don’t have to collect, administer or dispute deposits, and protects landlords from being liable for fined for not complying with the Housing Act 2007.
- £1m a year is stolen from deposit accounts by crooked letting agents and landlords. Deposit free renting with Dlighted makes this impossible.
In 98.5% of cases deposits are handed back uncontested – but what happens when there is a deposit dispute between landlords and tenants?
All good things come to an end – and even with the best tenancies landlords and tenants can end up disagreeing about the condition of a property when the time comes to move on.
The most common deposit disputes between landlords and tenants at the end of a tenancy include:
- Unpaid rent
- Unpaid bills
- Belongings missing from the property
- Direct damage to the property
- Indirect damage to the property due to negligence
- Lack of hygiene at the end of tenancy
- Improper maintenance of areas like the garden
One DPS provider has revealed that the number of tenants and landlords seeking redress from deposit dispute almost doubled in the last year – and experts at the Association of Independent Inventory Clerks have predicted that new laws proposed by the government will make deposit dispute more likely in the future.
With an old-fashioned tenancy deposit scheme – with a deposit will held by one of the three licensed DPS providers, MyDeposits, the Tenancy Deposit Scheme and Deposit Protection Service – and landlords have found that the process for recovering losses can be lengthy and confrontational.
It can also leave their properties impossible to rent for months at a time.
Even when claims have found in their favour some landlords have had the unpleasant surprise that the amount of money they have been awarded scarcely justifies the effort of the tenancy deposit process and barely covers the costs of substantial damage to their property or significant rent arrears.
Here’s the Dlighted deposit dispute difference
Deposit free renting with Dlighted means greater protection for landlords and agents against the risks of renting – not just property damage but also loss of rent and the cost of legal disputes.
Our deposit replacement insurance product guarantees landlords £600,000 for losses which occur as a result of tenant action, a rent guarantee and free legal support –as a well as a 365 day a year maintenance service overseen by an independent and impartial third party.
Tenants remain fully responsible for any damage or rent arrears at the end of the tenancy.
We know there are two sides to every story – but any deposit dispute can be resolved quickly and fairly through an independent, impartial adjudicator.
Dlighted’s tenancy deposit protection offers a free deposit dispute resolution when landlords and tenants disagree about the condition of a property at the end of a tenancy.
It’s as simple as this:
If both tenant and the landlord agree to the process they provide the adjudicator with evidence supporting their version of events.
Both parties have three months to supply their evidence.
And that’s it.
All considerations are dependent upon what the landlord and tenant agreed to in their original tenancy contract, and the adjudicator’s decisions are considered final.
At Dlighted we can help your deposit dispute by maintaining that evidence – securing your finances and your property.