Deposit protection — what you must do

The legal requirement

All deposits for assured shorthold tenancies that started after 6 April 2007 must be protected in a government-approved scheme within 30 days of receipt. This includes deposits paid by third parties — parents, employers, or rent guarantee schemes.

The three approved schemes

There are two types of scheme:

• Custodial (free) — the scheme holds the deposit. Use this if you don't want to handle the money. Available via DPS and TDS.
• Insured (fee applies) — you hold the deposit and pay the scheme for insurance cover. Available via TDS, DPS, and MyDeposits.

The three approved schemes are: Tenancy Deposit Scheme (TDS), Deposit Protection Service (DPS), and MyDeposits.

Prescribed Information

Within 30 days you must also give the tenant the Prescribed Information — the scheme name, scheme leaflet, the protection certificate, and details of how to reclaim the deposit and raise a dispute. Failure to provide this carries the same penalties as non-protection.

Recording deposit protection in LetSense

1. Go to the tenancy and click Edit tenancy.
2. Enter the deposit amount, the scheme used, and the protection reference number.
3. Upload the deposit protection certificate to the Documents tab.

LetSense will alert you if a deposit is recorded but not yet protected (no scheme reference).

Return the deposit within 10 days

Once you and the tenant have agreed on any deductions, the deposit must be returned within 10 days. If there is a dispute, the deposit stays protected in the scheme until the adjudicator decides.

If you miss the 30-day window

Late protection does not invalidate the tenancy, but it exposes you to a court fine of 1–3 times the deposit amount if the tenant applies. The tenant can apply at any point during or after the tenancy.