The Tenancy Deposit Scheme (TDS) has launched a Code of Recommended Practice for the first time.

Michael Morgan, director of dispute resolution at TDS, said the code builds on existing best practice recommendations it makes to members on issues such as tenancy agreements, check-in/out reports and keeping client money separate.

Morgan said: “Dealing with over 15,000 deposit disputes a year gives us an outstanding insight into what causes tenancy deposit disputes, and what can be done better to avoid them arising.

“With this in mind, TDS has launched the Code of Recommended Practice. It captures, in an easy to understand statement, those ‘best practice’ requirements which we would expect TDS members to follow in their dealings with tenancies and deposits.”

He added: “This is the first time we have launched a Code of Practice, although its content reflects best practice recommendations long recognised by us.

“TDS has always recommended that deposit holders keep client money separate.

“We have advised in addition that letting agents and corporate landlord members ensure that the account in which they hold deposits is a ring-fenced client account.

“Members who belong to a professional, accreditation or trade body are also advised to hold deposits in accordance with any additional rules they have, and/or with the requirements of their bonding provider.”