Deposit Protection – What You Must Do As A Landlord

  • News
  • Deposit Protection – What You Must Do As A Landlord

You are a thinking about letting out your property? It is important to understand different deposit protection schemes. You have a responsibility as a landlord to protect your tenant’s deposit.


As of 2007, amendments were made to the Housing Act, requiring all landlords to protect their tenant’s deposit. Ensuring that they are not unreasonable deductions from their deposit.  It safeguards their deposit until the end of their tenancy. It ensures that is the third-party deals with all the resolutions. If you are a tenant please refer to our previous article that relates to tenant deposit protection – click here. 


Custodial Scheme: 

This requires the landlord to put all the deposit into the scheme. The end of the tenancy has arrived. The scheme now gets the agreement of both the tenant and landlord for the deposit to be returned to each party. This can only be done when both parties have agreed.

Insurance-Based Scheme:

Is slightly different to the custodial scheme. The landlord keeps the deposit. They must register it in the scheme within 30 days. They then pay a fee to the scheme administrator for this. Within the 30-day period of the receiving the deposit the landlord must provide the tenant a prescribed form. This confirms what scheme has been selected. It is in a set form to be served on the tenant. At the end of the tenancy the landlord lays out their deductions to the tenant.

However, if there is a dispute the landlord has to refer it to the scheme. An independent adjudicator that looks at the circumstances of the deductions. It is the sole decision of the scheme and adjudicator to make. They will decide if the deductions are acceptable.

There are three current different schemes. However, this can change at any point.


TDS is an insured and custodial protection scheme, this option lets the landlord hold the deposit physically; they must however, register under this scheme to acknowledge the existence of the money. A separate account purposely for keeping the deposit. Should the landlord go bankrupt, missing or face any tragedy, the firm will still provide the deposit when needed.


Offers both custodial and insured schemes, operating in two forms it physically holds the deposits and acts as the custodian. Should the landlord decide to keep the deposit physically, the firm insures it. The system requires that the tenants receive back the deposit within ten days after the occupancy period is over. The landlord gives the deposit after checking the state of the house and together with the tenant; they agree on the amount to return.


This is an insured scheme. This scheme deals with any disputes that may arise; in addition, to allowing landlords and agents to hold the money physically.

All three of these schemes require the landlord to deposit the money within thirty days; in addition to serving your tenants with details of your chosen scheme.

Want to know more about the deposit protection schemes? Why not contact us on 01273 749169 to discuss it? Harringtons Lettings have been helping landlords since 1993 in Brighton and Hove. We also deal with the whole of Sussex.


See all News Posts
Get in Touch

Send a message to a member of our team and we'll be happy to answer your questions!

Send a Message

Register for Property Alerts

Let us know what you're looking for and we'll email you with matching properties when they become available.

Make an Enquiry

Please complete the form below and a member of our team will be in touch shortly.