All deposits paid in respect of an Assured Shorthold Tenancy (AST) must by law be protected with a government-authorised tenancy deposit scheme within 30 days of receipt of the money.
There are three schemes:
The Deposit Protection Service (DPS)
Tenancy Deposit Scheme (TDS)
My Deposits
All three schemes have extensive help on their websites and all provide a telephone helpline.
Landlords who fail to comply with the rules are subject to penalties:
- They will not be able to serve a valid section 21 notice until they have refunded the money, and
- You can apply to the court for a penalty fine of up to three times the deposit sum.
Note that deposits paid for other occupation types – for example lodgers, do not need to be protected with a scheme.