The Tenancy Deposit Scheme. (TDS) Inventories Explained..... The Tenancy Deposit Scheme (TDS) overview UK government regulations are being introduced from April 2007, The Tenancy Deposit Scheme (TDS) which states that all Landlords who take a deposit from tenants will have to be place the deposit into an authorised scheme. The deposit will be placed into either a Custodial or Insurance Scheme, run by an independent third party provider. Landlords who do not join the scheme will face the risk of paying a penalty of 3 times the deposit amount. A landlord may not be able to apply to the courts for repossession if a deposit is not insured or lodged with an approved scheme. The idea behind the TDP is that at the end of the tenancy period, the tenant and landlord will agree on how the deposit will be returned. Problems may arise if the landlord refuses to pay back part or all of the deposit. If this happens, the tenant can ask the TDS administrator to step in and the landlord will have to pay the amount in dispute into an account until the dispute is settled. The administrator will decide the amount to be returned to the tenant. This is why it is very important that all Landlords conduct an inventory of the property they are letting, so that if there is any dispute on condition of the property and contents they have a legally binding accurate record of the contents and condition upon the commencement of a tenancy. If landlords cannot prove that tenants have damaged the property, repairs will have to be made at their cost, rather than with the tenant?s original deposit. Simple steps to ensure that end of tenancy negotiations on the deposit can be dealt with quickly and easily. Landlords and tenants should ensure that a full inventory is prepared before a tenancy starts. The inventory should be checked carefully during the tenancy ?check in? period and agreed by all parties to the tenancy agreement. The ?check out? inspection should be thorough and any items that may lead to claims should be are witnessed. Choose your inventory solution now..... Inventories Explained.....