Tenancy Deposit Protection: Get It Right or Pay the Price
Deposit protection is one of the most heavily regulated areas of landlord law. Failure to comply can result in court penalties of up to three times the deposit value — and can invalidate your ability to evict. Our in-house solicitor ensures full compliance from day one.
Deposit value
Court can order landlord to pay the tenant between 1 and 3 times the deposit amount as a penalty.
Section 21 notice
A Section 21 notice cannot be served if the deposit is not protected or Prescribed Information not served.
Possession claim
Courts can refuse to grant possession if deposit obligations have not been met.
What the law requires from every landlord.
Protect within 30 days
The deposit must be protected in a government-approved scheme within 30 days of receiving it from the tenant.
Serve Prescribed Information
Within 30 days, you must provide the tenant with the Prescribed Information — details of the scheme, how to reclaim the deposit, and what to do in a dispute.
Re-serve on renewal
If the tenancy is renewed or becomes periodic, you may need to re-serve the Prescribed Information. Failure to do so can invalidate a Section 21 notice.
Return within 10 days
At the end of the tenancy, you must return the deposit (or the undisputed portion) within 10 days of agreeing the deductions with the tenant.
The three government-approved deposit schemes.
You must use one of these three schemes. We can advise on which is most appropriate for your circumstances.
Deposit Protection Service (DPS)
The DPS offers both custodial (free) and insured schemes. The custodial scheme holds the deposit for free; the insured scheme allows landlords to hold the deposit themselves for a fee.
Visit website ↗MyDeposits
MyDeposits is an insured scheme where the landlord or agent holds the deposit and pays a fee to protect it. Disputes are resolved through their free Alternative Dispute Resolution (ADR) service.
Visit website ↗Tenancy Deposit Scheme (TDS)
TDS offers both custodial and insured options. It is the only scheme run as a not-for-profit and is widely used by letting agents and landlords across England and Wales.
Visit website ↗What can you deduct — and what you cannot.
Landlords can only make deductions from the deposit for specific, evidenced reasons. Disputes most commonly arise where landlords attempt to deduct for fair wear and tear, or where there is insufficient evidence to support the claim.
A detailed check-in inventory with photographs, signed by the tenant, is your most important piece of evidence. Without it, deductions are extremely difficult to justify before an adjudicator.
Get Dispute AdvicePermitted deductions include:
- Unpaid rent at the end of the tenancy
- Damage beyond fair wear and tear (supported by check-in/check-out inventory)
- Cleaning costs where the property is left in a worse condition than at the start
- Replacement of items listed in the inventory that are missing or damaged
- Costs of remedying a breach of tenancy (e.g. unauthorised alterations)
- Reasonable redecoration costs where damage exceeds fair wear and tear
Note: All deductions must be evidenced. An independent adjudicator will decide disputes based on the evidence provided by both parties.
Frequently asked questions
Common questions about tenancy deposit protection and disputes.
Deposit compliance handled correctly from the start.
Our in-house solicitor ensures your deposit is protected, Prescribed Information is served correctly, and you are fully compliant — protecting your right to evict if needed.