Key takeaways
- Put the deposit in a government-approved scheme within 30 days of receiving it.
- Within the same 30 days, give the tenant the prescribed information about the scheme and how to get the money back.
- The deposit can't be more than five weeks' rent, or six weeks if annual rent is £50,000 or more.
- At the end, agree deductions with evidence. If you can't agree, the scheme's free dispute service decides.
When protection applies
If you let a property on an assured tenancy in England and take a deposit, you must protect it. That includes deposits paid by someone else on the tenant's behalf, such as a parent or guarantor.
There are three approved schemes. Two are insured, where you hold the money and pay a fee. One is custodial, where the scheme holds the money for free. Both kinds give the tenant the same protection.
The 30-day countdown
Day 0
You or your agent receive the deposit. Give the tenant a receipt.
By day 30
Deposit registered with an approved scheme.
By day 30
Prescribed information served on the tenant and anyone who paid on their behalf.
Same day
Keep proof of both: the scheme certificate and evidence the tenant got the information.
Step by step
- 1
Check the amount
Work out the cap: annual rent ÷ 52 × 5. Anything above is a banned payment under the Tenant Fees Act.
- 2
Choose a scheme
Pick an insured or custodial scheme. Many landlords use custodial for simplicity because it's free.
- 3
Register and pay in
Register the deposit and tenant details online. For custodial schemes, transfer the money.
- 4
Serve the prescribed information
Use the scheme's template. It must include the property address, amount, scheme details and how disputes work.
- 5
Store the evidence
Save the certificate, signed prescribed information and the email or letter you sent.
Never miss a deposit deadline. Record deposit amounts, scheme references and prescribed information dates in Simple Landlord, alongside the tenancy they belong to.
Get early accessInsured vs custodial
| Insured | Custodial | |
|---|---|---|
| Who holds the money | You or your agent | The scheme |
| Cost to landlord | Annual or per-deposit fee | Free |
| Cash flow | Money stays with you | Money is held until the end |
| Dispute service | Free for both sides | Free for both sides |
Fair deductions at the end
Usually fair
Unpaid rent, cleaning beyond a normal standard, damage beyond fair wear and tear, missing items.
Usually not fair
Worn carpets after several years, faded paint, routine redecoration or betterment.
What wins disputes
A signed check-in inventory with dated photos, compared against a check-out report.
FAQs
Do I need to re-protect a deposit when a tenancy renews?+
Under the Renters' Rights Act, tenancies in England are periodic, so there's no renewal. If anything changes, such as a tenant joining, check the scheme's rules and re-serve the prescribed information.
Does a holding deposit need protecting?+
No, but it's capped at one week's rent and must be returned or put towards the deposit or first rent once the tenancy is agreed.
How quickly must I return the deposit?+
Within 10 days of you and the tenant agreeing the amount.
What if there are joint tenants?+
Protect one deposit for the tenancy and serve the prescribed information on each tenant.
Does protection apply to lodgers?+
No. Lodgers living with you don't have assured tenancies, so the rules don't apply.
Written and reviewed by the Simple Landlord Editorial Team
Last reviewed 22 October 2026. This guide is general information, not legal or tax advice.
Sources
Never miss a deposit deadline
Record deposit amounts, scheme references and prescribed information dates in Simple Landlord, alongside the tenancy they belong to.
