Tenancy Deposit Scheme
There are three tenancy deposit schemes available to Edinburgh landlords. Here is what you need to know about about Tenancy Deposits
When renting property, it is wise to collect a deposit from tenants. This money serves as financial security for you, the landlord, in case any damage or unpaid bills occur during the lease period. If all goes according to plan and there are no issues upon move-out, then this sum gets paid back in full at the end of the tenancy.
Landlords in Scotland must now lodge any deposit paid by the tenant with an approved tenancy deposit scheme provider. This must be done within 30 working days of the tenancy starting.
A deposit protection scheme is a government-backed initiative that provides protection for tenants’ security deposits. The purpose of these schemes is to ensure that tenants who have paid a security deposit to their landlord or letting agent are able to get that deposit back at the end of their tenancy, provided they have met the terms of their tenancy agreement and have not caused any damage to the property.
These schemes provide a level of protection for tenants by holding the deposit in a secure, impartial account, and by providing an independent dispute resolution service in the event of a disagreement between the tenant and the landlord over the return of the deposit. In most cases, the deposit protection scheme will require the landlord or letting agent to transfer the tenant’s deposit to the scheme within a certain time frame, and will also provide guidance on how the deposit should be returned to the tenant at the end of the tenancy.
Who are the main tenancy deposit scheme providers for Edinburgh landlords?
Edinburgh Landlords can choose to use any of the three tenancy deposit scheme providers in Scotland. These are:
Safe Deposits Scotland
Safe Deposits Scotland are the main tenancy deposit scheme provider in Scotland. They are the only provider actually based in Scotland. Lodging your tenants’ deposit with Safe Deposits Scotland is a straightforward process and can be done online.
There are 4 steps for landlords to follow; Create an account, Register your details, Complete their Deposit Protection Form, and then pay the deposit by debit card, cheque or BACs.
My Deposits Scotland
My Deposits Scotland offer you two options for protecting your deposit. You can claim the full deposit from your tenant and pay it into My Deposits Scotland’s deposit protection scheme. Alternatively, you can offer your tenant a Deposit Replacement. This is a type of subscription membership, where tenants can pay a small monthly amount to My Deposits Scotland instead of having to pay the full deposit up front. This flexible option can appeal to tenants who prefer to manage their personal cash flow in their own way.
Letting Protection Scotland
Letting Protection Service Scotland is free to use as they fund themselves entirely from the interest they earn from deposits lodged with them. It’s worth mentioning that LPS regularly donate large amounts to housing charities, so they could be an excellent choice for landlords who would like to give something back to their community.
If you are unsure which Tenancy Deposit Scheme will be right for you, then why not let Home Sweet Home take care of all your deposits for you. Tenancy Deposits are included as part of our Landlord Services. We’ll take care of everything for you, it’s all included in our low fixed monthly fees.
Did you Know?
Home Sweet Home provide a complete Property Management Service for landlords in Edinburgh. For a fixed monthly fee we take all the stress out of renting your property.
As well as making sure you are complying with your tenancy deposit scheme obligations, our landlord service covers:
- Landlord Certification
- Smoke, Fire, Carbon Monoxide
- PRT Tenancy Agreements
- Find a Tenant
- Advertise Property to Rent
- Rental Property Inspections
- Inventories for Rental Properties
Fixed price management fee of 10% inc vat for the first year – reverts to 12% (10% +VAT) after the first year.