You will usually be required to pay a deposit to your Landlord or Agent before you can rent your new home in England or Wales. This deposit is held throughout your tenancy and will be returned to you at the end, as long there are no issues with the property.
If your tenancy is an Assured Shorthold Tenancy and started after 6th April 2007, your deposit will need to be held in a deposit protection scheme. You can check what type of tenancy you have on your tenancy agreement, if you’re not sure. A deposit protection scheme is used to keep your money safe during your tenancy.
How much deposit can be held?
The maximum deposit that can be held is the equivalent to 5 weeks’ rent (or 6 weeks’ rent if your annual rent is more than £50,000).
Which Deposit Protection Schemes should be used?
These are the government approved Deposit Protection Schemes that should be used:
– Deposit Protection Scheme (DPS)
– Tenancy Deposit Scheme (TDS)
– My Deposits
If you are not sure which scheme your deposit has been protected with, you can search the registers on the above websites to check using just a few details.
When should your deposit be protected?
Your deposit must be protected using one of the above schemes within 30 days of your Landlord or Agent receiving your deposit. Your deposit must be protected, even if it has been paid by someone else such as a family member.
What should you receive when your deposit has been protected?
You should receive the following documents from your Landlord or Agent to show your deposit has been secured:
– Deposit Certificate – this shows the amount and date secured
– Deposit Prescribed Information – this shows information about the property and tenancy
What happens at the end of your tenancy?
At the end of your tenancy, your Landlord or Agent must pay your deposit back to you within 10 days of the amount being agreed.
If there is a dispute around how much deposit will be returned, the deposit will remain in the scheme until it has been mutually agreed.