Tenancy Deposit Protection
You must place your tenants’ deposit in a tenancy deposit protection scheme if you rent out your home under an assured shorthold tenancy (AST), in accordance with the Housing Act 2004. To ensure that all of your deposit is held adhering to client money regulations, Rentify recommends landlords use a Deposit Protection Service (DPS).
If you do not place your tenant’s deposit in a tenancy deposit protection scheme, you may have to pay a large fine.
As a private landlord, you are required to pay your tenants’ deposit into the scheme within 30 days of receiving it, to ensure you are in full compliance with the law.
Deposit return issues
If you and your tenant cannot decide about how much deposit should be given back at the end of a tenancy, you can use the deposit protection scheme for help. This offers a free dispute resolution service. Please note, you will both be asked to provide evidence and required to accept the final decision.
What penalty could I face?
If you don’t protect your tenant’s deposit, a court can order you to repay it within 14 days. You may also have to pay up to 3 time the value of the deposit.
Learn more about how to protect your deposit:
You are required by law to: