ARLA, the Association of Residential Letting Agents, is to give a boost to the Tenancy Deposit Scheme, the government-backed pilot scheme for safeguarding rental deposits. By signing up to the Scheme, which is still in its pilot stage, on behalf of all member firms ARLA is hoping to bring quick resolution to the enduring sagas of disputed deposits that arise at the end of tenancies. This will benefit both tenants and landlords.
With the insertion of a single clause in all their tenancy agreements and another in the written terms and conditions to client landlords, ARLA member firms will be able to automatically link all their tenancies to the Insured Option Tenancy Deposit Scheme. This is run under the auspices of the Independent Housing Ombudsman.
The scheme is covered by the Norwich Union Professional Risks/Guarantee Society. It enables tenants and landlords to go straight to the Independent Housing Ombudsmen for fast adjudication in the event of deposit disputes. On the instructions of the Ombudsman, the insurers pay out what is due to the right party. Then, with regulated letting agents holding the deposit in the usual way, the agent reimburses the insurer from the funds held.
Adjudication is within 10 working days. There is no cost to the tenant — as deposits, by their nature, belong to the tenant — and there is only a £20 charge to the landlord should the adjudication favour the tenant. Said Mrs Lindsay Ostervig, the ARLA National Council member responsible for liaison with the Ombudsman and the Tenancy Deposit Scheme, “Any experienced letting agent will agree that the prospect of resolving deposit problems at this speed and lack of cost has been no more than a pipedream until now.”
As the lead professional organisation for the Private Rented Sector, ARLA has been closely involved in the development of the scheme and in the training required for the adjudicators.
“As well as cutting costs and wasted time, we believe that this insured deposit scheme should go a long way towards cutting out the cowboy agents and rogue landlords,” said Mrs Ostervig. “Every prospective tenant should now ask if a tenancy is covered under the Insured Tenancy Deposit Scheme before handing over a deposit.”
Mrs Ostervig pointed out that with 1200 ARLA member offices in England dealing with some half a million tenancies, the scheme is now within reach of almost everyone. There is no need or excuse to deal with either a cowboy agent or rogue landlord. This should come as a relief to the parents of students and other young people in particular,” she added.
The newly-appointed Independent Housing Ombudsman, Mike Biles said, “On joining, I was delighted to find this innovative and necessary scheme being piloted. I am particularly pleased that ARLA is taking this proactive role.”
Details of the nearest ARLA member letting agent can be obtained through the ARLA Hotline, 0845 345 5752, or by visiting
www.arla.co.uk
