Tenancy Deposit Scheme - information for tenants
When you start renting a home from a private landlord, you will usually pay a deposit. Your landlord must protect your deposit under the Tenancy Deposit Scheme. This scheme makes sure you'll get your deposit back when you move out if you looked after the property and paid your rent.
Your tenancy deposit
A landlord can ask you to pay a tenancy deposit when you start renting your home. A landlord cannot ask for a tenancy deposit which is more than one month's rent. The deposit can cover unpaid rent or damage caused to the property during your tenancy.
If you paid your deposit on or after 1 April 2013, your landlord must protect your money in a Tenancy Deposit Scheme.
Paying rent up front doesn't count as a deposit. But if your landlord asks for a rent deposit as security against you not paying rent, your deposit must be protected in an approved scheme during your tenancy.
What your landlord must do
Your landlord must protect your deposit in a Tenancy Deposit Scheme within 28 days of receiving it. They must protect your deposit in an approved scheme during your tenancy.
Information about your tenancy
When you pay your deposit, the landlord must give you written information about your tenancy within 35 days.
The information must include:
- details of the deposit amount protected in an approved scheme
- your full tenancy address
- the landlord's and any agent's name, address and contact details
- the name and contact details of the scheme protecting your deposit including how you can let the scheme know about a disagreement over the return of your deposit
- the reasons why part or all of your deposit might be withheld at the end of the tenancy
- what happens when you cannot be contacted at the end of the tenancy
Landlords living outside Northern Ireland who take a deposit for a private tenancy in Northern Ireland must still follow the law.
They must give a contact address in Northern Ireland to the scheme administrator protecting the deposit.
Protecting your deposit
Once your landlord receives your deposit, they must make sure that it is protected in an approved scheme.
If your landlord uses an agent, the agent is responsible for:
- protecting the deposit within 28 days
- giving you specific written information within 35 days
The scheme administrators must hold the deposits in special bank accounts, regulated by the Financial Conduct Authority, to make sure your money is safe and in case their scheme fails.
The two appointed scheme administrators are:
Paying your deposit by instalment
Some scheme administrators may accept deposits paid in instalments. Ask your landlord or letting agent if the scheme they use allows you to pay your deposit in instalments.
A holding deposit
Sometimes a landlord asks for a holding deposit. By paying a holding deposit, you confirm your intention to rent. By accepting a holding deposit, the landlord confirms they will rent to you. They hold the property for you until you sign a tenancy agreement. You'll lose this deposit if you pull out of the tenancy. You should get the deposit back if the landlord pulls out.
If you rent the property and your holding deposit becomes the tenancy deposit, the landlord must protect your deposit in an approved scheme within 28 days.
Overseas students
If you're an overseas student, the amount of deposit you get back at the end of your tenancy might be adjusted to cover transaction costs to a foreign bank account. Ask the scheme administrator for more details.
Students living in university halls
If you're a student living in a university hall of residence, you might live there under licence. You don't have a private tenancy. Your deposit doesn't come under the Tenancy Deposit Scheme rules and doesn't need to be protected in a scheme.
Multiple tenancies
If the property is let to several tenants on one tenancy agreement, you might need to nominate a lead tenant to deal with:
- the deposit
- any dispute that might arise at the end of the tenancy
Each scheme must allow all tenants to access the scheme and its services.
Your landlord is selling the house you rent
If your landlord is selling the property you rent, the scheme administrator will continue to protect your deposit until the end of the tenancy.
Your tenancy agreement should explain what happens if your landlord sells the property. This should include the notice to quit period your landlord must give you.
Your rented home is repossessed
If the property you rent is repossessed and if your landlord has protected your deposit in an approved scheme, the scheme will protect your deposit until you have to move.
If your landlord doesn't protect your deposit
You can contact the Environmental Health Office in your local council if:
- your landlord doesn't protect your deposit within the 28-day time limit
- your landlord doesn't give you written information about your tenancy deposit protection within the 35-day time limit
When a council finds a landlord has broken the law over tenancy deposits, they can fine the landlord three times the amount of the deposit.
The council can also prosecute a landlord for breaking the law. If convicted, a court can fine a landlord up to £20,000.