What is a deposit protection scheme?

What a landlord has to do to set up a deposit protection scheme, and why it is needed

By law, landlords taking deposits for assured shorthold tenancies are required to safeguard their tenants' deposits through the registration with an approved deposit protection scheme. In addition, they must inform their tenant that the deposit has been protected with a scheme within 14 days of the deposit being paid to the landlord. The notification to the tenants must also contain certain prescribed information.

The three deposit protection scheme providers are the Deposit Protection Service, MyDeposits and the Tenancy Deposit Scheme. The first is a 'custodial' scheme, which means the money is held by the scheme provider rather than the landlord until it needs to be repaid to the tenant. The other two are 'insurance' schemes, where the landlord keeps the deposit but is insured against being unable to repay the tenant at the end of their tenancy.

Use our 'Notice to tenant(s) of deposit protection scheme' form to give the tenant details about the protection scheme being used.

Start your 'Notice to tenant of deposit protection scheme' now