Renting out a property? Make sure you understand your responsibilities for safeguarding your tenant’s deposit, or you could face a fine.
Changes in the law came into force on 6 April 2012. You must protect all your tenants’ deposits within 30 days of a tenancy starting.
All landlords must protect their tenants’ deposits in a government scheme. This means that you’re both protected if there is a dispute.
Landlords who don’t protect their tenants’ deposits after 6 May 2012 will face a minimum fine of up to three times the value of the deposit. This applies to all tenancies that started since 6 April 2007 — not just new tenancies.
You must protect your tenant’s deposit in one of the government-approved schemes within 30 days of the tenancy starting.
You must provide your tenant with the following information within 30 days:
If you don’t protect the deposit within 30 days of receiving it:
Shelter wants to make sure that landlords understand their responsibilities, as this will make renting better for tenants and landlords alike.