Informed Landlords Glossary: TDS

TDS stands for tenancy deposit scheme.  More information can be gained by following the link to our tenancy deposit page. 

It is the scheme which protects tenants deposits and means they are held by a third party rather than the landlord.  For example, Mary wants to rent a property and has to pay a deposit of a months rent or £800.  If that deposit is held with the landlord, it is at risk if the landlord is declared bankrupt and furthermore the landlord earns interest on the payment while any dispute is settled at the end of the tenancy.

TDS means that this deposit is held by a third party.