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View Full Version : Deposits! Confusion!



Blobby
13-05-2007, 17:24 PM
Hi I currently have a 5 bed student HMO property, each tenant is on a seperate contract. My contract states on the top that it is a AST.
- Does this actually constitute a AST?
- Do I HAVE to comply with the new deposit schemes?


I also have a house converted into 3 self contained flats - 2 people in each and not a HMO. Tenants are on the same contracts as above.
- Are theses AST's?
- Do I have to comply here?
A local Estate Agent that runs a deposit scheme said I wouldn't need to comply with the flats because they aren't on AST's(although it states it at top of contract!)?

Please could someone explain/answer my queries clearly and simply - cos I'm confused!!
Thanks

Uncle Fester
13-05-2007, 17:40 PM
I think with all AST's you need to go through TDS (Not 100% Sure)

Editor
13-05-2007, 19:16 PM
Virtually all residential tenancies are now ASTs. You will have to comply with the TDS if you take deposits.

Blobby
15-05-2007, 17:01 PM
Thanks for your help so far, can anyone else confirm this is correct? Why did the Estate Agent say that we weren't required to use a TDS?

Thanks

jeffrey
16-05-2007, 09:29 AM
Thanks for your help so far, can anyone else confirm this is correct? Why did the Estate Agent say that we weren't required to use a TDS?

Thanks

Agents might be confused. "HMO or not" is a different question from "TDS applies or not".
TDS does not apply to:
a. lettings outside 1988 Act (eg to company, or at low/no rent, or holiday let, or resident L, or business/agricultural); nor
b. lettings within 1988 Act but on the SAT basis rather than AST basis.

Blobby
18-05-2007, 10:47 AM
Thanks fo ryour help - but i'm still confused! Can anyone give me a DEFINITE yes or no? Does anyone know for sure? DO I have to use a TDS for both types of property? THanks

Esio Trot
18-05-2007, 11:24 AM
Thanks fo ryour help - but i'm still confused! Can anyone give me a DEFINITE yes or no? Does anyone know for sure? DO I have to use a TDS for both types of property? THanks

One definitive answer is that if your tenants have an Assured Shorthold tenancy, then TDS will apply. Full Stop.