Your Tenancy Deposit Is Protected...
So, What Next?
On this page, we’ll guide you through the options you have and actions you can take if your tenancy deposit has been protected correctly.
A Guide To Tenancy Deposit Schemes
At Tenant Angels, we specialise in helping tenants with compensation claims against their landlords when they have failed to:
- Protect a tenant’s deposit in one of the 3 government-approved tenancy deposit schemes (TDS, DPS or MyDeposits).
- Protect the deposit within 30 days of the monies being paid (often referred to as ‘late protected’).
- Keep the tenancy deposit protected for the whole duration of a tenant’s stay in the property. For example, the landlord must not remove the deposit from the scheme until the day you move out (often referred to as ‘removed from the scheme early’).
Custodial or Insurance Based Schemes
Landlords can choose between two types of schemes: a single custodial scheme and two insurance-based schemes. More information on the tenancy deposit protection schemes available and how to contact them can be found below.
- The tenant pays the deposit to the landlord;
- The landlord then pays the deposit into the scheme;
- Within 30 days of receiving a deposit, the landlord must give the tenant the prescribed information (to be set out in secondary legislation) about the scheme being used;
- At the end of the tenancy, if the landlord and tenant agree how the deposit should be divided, they will tell the scheme which returns the deposit, divided in the way agreed by both parties;
- If there is a dispute, the scheme will hold the disputed amount until the dispute resolution service or courts decide what is fair;
- The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will be used to offer interest to the tenant, or landlord if the tenant isn’t entitled to it.
- The tenant pays the deposit to the landlord;
- The landlord retains the deposit and pays a premium to the insurer – the key difference to the custodial scheme;
- Within 30 days of receiving a deposit, the landlord must give the tenant prescribed information (to be set out in secondary legislation) about the scheme being used;
- At the end of the tenancy, if the landlord and tenant agree how the deposit should be divided, the landlord returns all or some of the deposit;
- If there is a dispute, the landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved.
- If for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it
Contact The Deposit Schemes
Contacting the scheme directly is your best approach to solving your deposit dispute with your landlord. All 3 schemes offer a dispute resolution service, which means your deposit cannot be touched until a decision has been made, protecting you and your money.
Tenancy deposit scheme (TDS)
Established since 2003
TDS is an insurance-backed deposit protection and dispute resolution scheme run by The Dispute Service.
Deposit Protection Service (DPS)
Established since 2007
The DPS is the only custodial deposit protection scheme – is free to use and open to all Landlords and Letting Agents.
MyDeposits
Established since 2007
MyDeposits is a partnership between the National Landlords Association and Hamilton Fraser Insurance. The insurance-based tenancy deposit protection scheme is designed primarily to enable landlords to continue holding deposits.
How To Work With The Scheme
If you’d like some tips on how to work with the tenancy deposit scheme, please download our easy to follow ‘Your Deposit Is Protected, What Next?‘ guide which will give you advice when dealing with deposit schemes.
Chat To Our Friendly UK Based Team
Once you’ve spoken to the scheme your deposit was protected with and you have a reason to believe your landlord did something wrong, such as they were late protecting your deposit (after 30 days), failed to keep your deposit protected for the whole duration of your tenancy or they didn’t provide you with Prescribed Information, send us a message on WhatsApp and we’ll let you know if you may have a tenancy deposit claim.
