Before you move into a rental property, your landlord - or the letting agent, if your landlord uses one - will normally require a sum of money known as a tenancy deposit.
The money acts as security for the landlord in case you do not meet the obligations of your tenancy agreement , such as paying your rent. It can also be used to cover the cost of any damage you make to the property while you live there or items missing from the original inventory.
This guide explains how much you are likely to be charged, how your money should be protected and your rights on getting your money back at the end of a tenancy.
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In England, a tenancy deposit is usually limited to five weeks' worth of rent or six weeks' if the cost of the rent is over £50,000 a year.
In Wales and Northern Ireland there isn't a formal cap but renters usually pay one month's rent as a tenancy deposit.
In Scotland, the limit is no more than two months' rent.
By law, anyone renting through an Assured Shorthold Tenancy in England and Wales (this will apply to most people who rent their property) should have their deposit protected in a deposit protection scheme.
There are three deposit protection schemes in England and Wales:
Your landlord will decide which scheme to use, but your deposit should be equally protected whichever one they choose.
Scotland and Northern Ireland operate separate schemes, but they work in the same way as detailed below. You can find out more on the Scottish
Your tenancy agreement should include information about which scheme your landlord or letting agent is using.
Within 30 days of paying your deposit, your landlord should confirm the following information in writing:
If your landlord does not protect your deposit using a recognised scheme, or does not provide you with the required information, you could take them to court.
However, before taking court action you should first write to your landlord to give them the chance to protect the deposit and/or to provide the information.
At the end of a tenancy, provided you've stuck to the terms of your tenancy agreement, you haven't done any damage to the property and you've paid all your rent and bills, you should be entitled to your full deposit back.
If you haven't met all of these terms, your landlord may wish to withhold some or all of your deposit to cover any costs they incur. If they need to repair damage you have made to the property, for example, you might not get your deposit back.
Your landlord must return your deposit within 10 days of you both agreeing how much you’ll get back.
As well as protecting your money during your tenancy, deposit protection schemes can help resolve disputes that arise between you and your landlord.
For example, if you think your landlord wants to withhold an unreasonably high amount of your deposit to cover their costs, you can complain to the scheme's dispute resolution service.
It will then investigate the facts and determine the dispute. If you use the dispute resolution service, you and your landlord must do what it recommends - its decision is generally final.
Again, once you and your landlord have agreed how much deposit you will be getting back, it must be returned to you within 10 days.
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