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 and impartial adjudication for disputes that arise over the tenancy deposits that we protect. This article has been written in response to a Landlord’s query: “Does the deposit need to be re-protected when the tenancy turns periodic.
Please note that this article can only discuss the rules as applicable to the TDS Insured or TDS Custodial schemes.
The tenancy is protected under TDS deposit protection until its end. As the tenancy turning periodic does not indicate the end of the tenancy, then the deposit would not need to be re-protected provided the tenant(s), landlord(s), premise, and deposit scheme all remain the same.
When does the prescribed information need to be re-issued?
There are four situations in which a landlord/agent should reissue the prescribed information.
- Change of tenant (For example if one tenant moves out and is replaced)
- Change of landlord (For example if the landlord sells the property to another landlord)
- Change of scheme (For example if you were leaving the Insured scheme to join the Custodial scheme)
- Change of tenancy address (For example if the agent or landlord has an alternative property for the tenants to move to)
Are there any cases in which the deposit should be re-protected?
In the TDS Insured for Landlord’s scheme, if the tenancy enters a new fixed term, the deposit would need to be re-protected and the protection fee paid again. For example, if the tenant didn’t want to move to a periodic tenancy, but instead wanted to remain in the property for another fixed term of 1 year, then the landlord would need to re-protect the deposit.
TDS cannot comment on how any other deposit protection schemes operate.
The case of Superstrike VS Rodrigues decided a statutory periodic tenancy was a new tenancy. This has been addressed by the deregulation act. Essentially if the deposit was received on or after 6th April 2007 and was protected correctly at the time, the deposit does not need to be re-protected nor prescribed information served again on renewal (or at the start of the statutory periodic tenancy) as long as:
- the tenant(s), landlord(s), and the premises remain the same; and
- the deposit is held in the same scheme
- prescribed information can include details of a person representing the landlord
If you are unsure as to whether you should re-protect a deposit, you should seek legal advice.
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