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What is a tenancy deposit protection scheme?
When you rent a house or flat, you’ll usually have to pay a deposit. The landlord will keep this until the end of your tenancy.
A tenancy deposit protection scheme keeps your money safe for the terms of your tenancy.
How tenancy deposit protection schemes work
A major worry for renters is a landlord making deductions from your deposit without good reason.
Another concern is about how long it will take them to return your money once you’ve moved out.
A tenancy deposit protection scheme was designed to prevent these issues, by placing your deposit in a government-authorised protection scheme. You may also hear it called the ‘rent deposit scheme’.
Your landlord or agent pays in your deposit
They must follow these deadlines;
- England and Wales – within 30 days of receiving your deposit.
- Scotland – within 30 working days of tenancy starting.
- Northern Ireland – within 28 days of receiving your deposit.
They tell you where your deposit is
There are two types of schemes;
- A custodial scheme. This holds on to the deposit on your landlord’s behalf.
- An insurance-backed scheme. This lets the landlord hold onto the money.
You receive your deposit back
If your tenancy is ending and there’s no dispute, your landlord should return your money as soon as possible. Minus any deductions you’ve agreed to.
If there's a dispute, about a withheld deposit or damage deductions you don't agree with. Or your deposit hasn't been returned within 10 days, contact your tenancy deposit protection scheme provider.
They’ll ask for any contested deposit be paid to them while they investigate. Then they’ll usually make a judgement within 28 days.
Basing judgements on evidence
A tenancy deposit protection scheme can only make a judgement based on the evidence provided, as they won’t hold a hearing or visit the property.
So, there are a few things you can do to help sway their decision in your favour:
- Take photos of the property and contents when you move in, and when you move out. This means the landlord can’t claim you’re responsible for damage that was already there.
- Get a professional cleaning company in when you move out. Keep the receipt, so the landlord can’t claim you didn’t clean when you left.
- Keep a record of all correspondence with your landlord about repairs or replacements you’ve asked for. This is so you have evidence.
Benefits for the renter
A tenancy deposit protection scheme has plenty of benefits for the renter, including:
- It keeps your money safe during your tenancy.
- You know when and how you’ll get your deposit back.
- You can question the terms ahead of signing any agreement.
- An independent body will get involved if there’s a dispute. So, it isn’t just your landlord’s word against yours.
Let’s take a closer look
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Although landlords must use a tenancy deposit protection scheme, it’s worth checking. If they haven’t, they’re breaking the law.
- In England and Wales – apply to your local county court to get your money back.
- In Scotland – apply to First-tier Tribunal (Housing and Property Chamber).
- In Northern Ireland a tenant should contact nidirect.
There may be legal fees to pay, but you’ll get them back from your landlord if the court finds they haven’t properly protected your deposit. You could get a payout of up to three times the value of your initial deposit.
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There are very few occasions when a landlord doesn’t have to be part of a tenancy deposit protection scheme, such as:
- the rent is more than £100,000 a year.
- the tenant is a company rather than an individual, or
- the property belongs to a university or college and rented to its students.
- the landlord has not requested any deposit.
If a landlord has entered into an Assured Shorthold Tenancy agreement, which most are, they must use a tenancy deposit protection scheme by law.
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