What Do I Do With A Tenant’s Deposit?
Once a Landlord or Letting Agent receives a Tenant’s deposit, they have 30 days to protect it in a Government-approved scheme. The Deposit has to be protected for the whole time they remain a Tenant at the property. The Tenant should be provided with a certificate of protection and relevant information relating to the scheme that their deposit is protected with.
There are currently three Government-approved schemes available for protecting Tenant’s deposits. They are:
- Tenancy Deposit Scheme (TDS) - This is the scheme currently used by Norgrove Sales & Lettings
- Deposit Protection Service (DPS)
As a Landlord, you have to protect your Tenant’s deposit for the whole time they remain a Tenant at the property. If you are using the service of a Letting Agent, your Letting Agent must protect your Tenant’s deposit. Both Landlords and Letting Agents follow the same rules, as a stated below:
- Once received, you have 30 days to protect your Tenant’s deposit with a Government-approved scheme
- Inform your Tenant of which scheme you’ve used
- Provide your Tenant with a certificate of protection and relevant information about the scheme
- When the Tenancy has ended, you must return the Tenant’s deposit within 10 days of you both agreeing how much the Tenant will get back.
- If you’re in a dispute with your Tenant, then the deposit will be protected in the scheme until the issue is sorted out.