There are some simple steps to make sure the deposit remains properly protected and outgoing, incoming and remaining tenants are aware of their responsibilities at the end of the tenancy.
Where there is a change in the parties to a tenancy, the best approach is to bring the existing tenancy agreement to an end, then deal with the deposit, and finally create a new tenancy with a new deposit. Although this is the best approach, we appreciate that this option is not always achievable or practical.
If a new tenancy agreement has been entered into, the deposit registration for the old tenancy should be brought to an end.
The deposit for the new tenancy should be protected with a Government-approved deposit protection scheme, such as TDS within 30-days of receiving it.
TDS Custodial members benefit from a new, online tenant changeover function, which can simplify this process. Members can log in to their user account and remove the outgoing tenant from the deposit registration, including repaying them any amount they’re owed.
If a new tenant or multiple tenants are moving in to replace the outgoing, you can also add their details and ‘top up’ the protected deposit as part of the tenant changeover process.
The tenant changeover function should only be used if the parties agree as to any deductions being made from the deposit. As the tenancy is still on-going in these instances, the alternative dispute resolution service cannot be used.