Deposits
It's important to be prepared to have a tenancy deposit in order to rent privately.
What is a deposit?
A tenancy deposit is a sum of money which a landlord tenancy agreement may ask a tenant to pay at the start of a tenancy. The landlord holds the money as security against the tenant not meeting their obligations. A tenancy deposit gives your landlord protection against you leaving without paying the rent or for any damage you cause. Your deposit is your money and if you have paid all the rent due and caused no damage, the full amount of your tenancy deposit should be returned at the end of your tenancy.
How tenancy deposit protection schemes work
Your tenancy deposit must be protected in a government-backed scheme if you are an assured shorthold tenant. Your landlord must put your deposit in a government-backed tenancy deposit scheme (TDP) if you rent your home on an Assured Shorthold Tenancy that started after 6 April 2007. In England and Wales your deposit can be registered with:
They make sure you’ll get your deposit back if you meet the terms of your tenancy agreement, don’t damage the property and have paid your rent and bills.
Whose deposits must be protected?
All tenancy deposits paid by an assured shorthold tenant have to be protected by the landlord in a government-backed scheme.
Not all tenancy deposits have to be protected. Exceptions include if you live in the same house as your landlord, or stay in student halls of residence.
Landlord's tenancy deposit responsibilities
Your landlord/letting agent is responsible for:
- Protecting your deposit with a government-backed scheme
- Providing you with information about the scheme used
- Putting your deposit in the scheme within 30 days of receipt.
The law says that your landlord must provide you with certain information about the protection of your deposit. This is called "prescribed information".
Once your landlord has received your deposit, they have 30 days to inform you in writing about:
- The address of the rented property
- How much deposit you’ve paid
- How the deposit is protected
- Details of the tenancy deposit scheme used,
- Why they would keep some or all of the deposit
- How to get your deposit back when you leave
- What to do if there is a dispute about its return
- Your landlord's name (or the letting agency’s), address and contact details
- The name and contact details of any third party that’s paid the deposit
- What to do if you can’t get hold of the landlord at the end of the tenancy.
You must also be given a copy of a deposit protection certificate, signed by the landlord.
At the end of your tenancy
Your landlord must return your deposit within 10 days of you both agreeing how much you’ll get back. If you’re in a dispute with your landlord, your deposit will be protected in the TDP scheme until the issue is sorted out.
Alternatively read more information on deposit protection from the Government.