Tenancy Deposit Solutions Ltd announces fees for agents

Tenancy Deposit Solutions Ltd (TDSL) has announced its tariff for agents who join the tenancy deposit protection scheme which it is running.

Fees will be payable by agents on a "pay-as-you-go" basis. A one-off joining fee is required per branch in order to set up an account (100 for members of ARLA, NAEA, RICS, NALS and UKALA /150 for non-members of those organisations). An annual renewal fee per branch is also required (50 for members of the above bodies/ 75 for non-members of those bodies).

A fee is required for each deposit. Agents will only pay this fee once - regardless of how long they hold the deposit. In respect of joint tenancies, agents will only have to pay one fee to cover the total deposit. The deposit fee is 20 for members of the bodies specified earlier and 30 for non-members as applies to the administrative fees. There is no limit to the number of deposits that an individual member of the scheme can protect.

Letting Agents and Managing Agents Joining Fee per branch (exc. VAT) Deposit Protection Fee (per deposit exc. VAT) Annual Renewal Fee per branch (exc.
VAT)

Members of ARLA, NAEA, RICS, NALS and UKALA 100.00 20.00 50.00

Other agents 150.00 30.00 75.00

In many cases it will be a deposit that an agent holds on behalf of a landlord that is protected by the Scheme. After 6 April tenants will still pay deposits to the agent. The agent will hold the deposit and notify the Scheme Administrator that they have the deposit and that it should be protected. If there is a dispute over the deposit at the end of a tenancy and both agents and tenants are agreed this can be referred to a dispute resolution service. This is an impartial and evidence-based service.

It will also be possible for an agent registered with TDSL to protect a deposit taken by a landlord client and held by that landlord client. There would need to be a service agreement between the two parties. The Scheme would deal with the agent in the event of a dispute and the agent would be required to lodge the disputed amount with the Scheme if requested to do so. The landlord would still have ultimate liability for a deposit.

David Salusbury, Chairman of TDSL, said: "Agents - just like landlords - should not bury their heads in the sand. These fees are very modest and are certainly a great deal cheaper than the penalties that can be imposed for failing to join a scheme. A court can order a landlord to pay to the tenant three times the amount of the deposit in question if that deposit has not been protected. With the average deposit being nearly 600 that could amount to 1,800 for every single unprotected deposit."

Agents can register with Tenancy Deposit Solutions and find out more by visiting the TDSL website mydeposits.co.uk.