Tenancy deposit protection: a landlord's guide
By the Dome team · Reviewed
If you take a deposit on an assured shorthold tenancy in England, you must protect it in a government-approved scheme within 30 days. Here is how the schemes work and what happens if you miss the rules. This is a general guide, not legal advice.
The short answer
Within 30 days of receiving the deposit you must protect it in one of the three approved schemes and give your tenant the prescribed information about where it is held. Miss either step and you can be ordered to pay the tenant up to three times the deposit, and you lose the ability to use certain possession routes.
The three approved schemes
- Deposit Protection Service (DPS)
- MyDeposits
- Tenancy Deposit Scheme (TDS)
Each scheme offers two options. With a custodial scheme, the scheme holds the deposit for free. With an insured scheme, you keep the money in your own account and pay a fee to insure it. Either way, the deposit is protected in the same way.
The 30-day deadline
The clock starts when you receive the money, not when the tenancy starts. Within those 30 days you must both protect the deposit and serve the prescribed information on the tenant and anyone who paid the deposit on their behalf, such as a parent.
What the prescribed information covers
- Which scheme holds the deposit and how to contact it.
- The deposit amount and the property address.
- Your contact details and the tenant's.
- How the deposit is returned and how disputes are resolved.
- What to do if either side cannot be contacted at the end of the tenancy.
Each scheme provides a template. Keep proof that the tenant received it, for example a signed copy or an email trail.
Deductions at the end of the tenancy
You can deduct for unpaid rent, damage beyond fair wear and tear, and missing items, but not for ordinary ageing of the property. Return the agreed balance promptly, usually within 10 days of agreeing the amount. If you and the tenant disagree, the scheme's free dispute resolution service decides, based on evidence such as the check-in and check-out inventories.
What happens if you don't protect it
- The tenant can apply to court, which must order you to repay the deposit or protect it, and to pay compensation of between one and three times the deposit.
- While the deposit is unprotected, or the prescribed information was never served, your ability to regain possession is restricted.
- Repeat failures across tenancies can mean paying the penalty more than once.
Renewals and periodic tenancies
If the tenancy renews or rolls into a periodic tenancy and the deposit stays in the same scheme, you usually do not need to re-protect it, but check your scheme's rules and make sure the prescribed information is still accurate.
Deposit protection is one of several checks you need before a tenancy starts. See the full landlord compliance checklist for the rest.
Frequently asked questions
How long do I have to protect a tenancy deposit?
30 days from the day you receive the money. Within the same 30 days you must also give the tenant the prescribed information about the scheme holding it.
Which deposit protection schemes can I use?
Three government-approved schemes operate in England: the Deposit Protection Service (DPS), MyDeposits and the Tenancy Deposit Scheme (TDS). Each offers a free custodial option and a paid insured option.
What is the penalty for not protecting a deposit?
A court can order you to pay the tenant between one and three times the deposit, and your ability to regain possession of the property is restricted while the deposit is unprotected.
