Deposit Protection Schemes: A Complete Guide To Protect Your Tenancy Deposit

In this modern world, people get busy with various things and try to stay away from home to meet their needs and expectations.

Well, it’s not easy to stay outside the house for a long time, but there is no other way to deal with current world situations.


Because our contemporary world is full of competition and uncertainties, you will not be able to sit and relax here. Meeting your goals needs adequate financial freedom. Financial freedom comes with advanced study, hard work and determination, which is not always possible by staying in your native place.

So, people go to various places and take the rent of other people’s houses to stay and fulfil their dreams. But most people are unaware of the laws and rules related to tenancy.

Here we are going to discuss tenancy-related issues and solutions.

You might not know, but you must pay a security deposit in advance before entering a rental property.


This is because they will keep the security deposit if you do something wrong or damage the owner’s property. On the other hand, you will also need to make sure that your security demerit is safe and secure.

Protection of security deposits is by the rule, and it’s a government initiative to protect your tenancy deposits which need to be ensured by the property owners.

This article is going to be vital for both the tenants and the property owners.

What Is Tenancy Deposit Protection Scheme?

Tenancy deposit protection (TDP) is a must thing to do by property owners to ensure that their tenant’s money is safe and sound.

According to the law, if the tenancy starts after 6 April 2007, you need to ensure that the deposit money is protected.

However, there are some government-backed schemes which will ensure that your tenants will get the deposit back on time. Well, in only a few circumstances, they will not get back the security deposit.

If they damage the property.
If they do not pay the rent and bills.
If they do not meet the tenancy agreement.

In addition, a property owner will have to secure the deposit money within the scheme within 30 days of payment.

In the U.K., you will be able to protect the money by following schemes.

Tenancy Deposit Scheme.
Deposit Protection Service.

In various parts of the U.K., the tenant is required to pay a particular amount of money as a security deposit to the owner of the house. It can be equivalent to 4-5 times the weekly rent.

Here comes the tenancy deposit protection scheme, which allows the owner to protect their land from the wrongdoings of the tenants. On the other hand, it also protects the tenants from the misuse of money by the property owners.

A property owner may not accept that they have got any security deposit, but with a tenancy deposit protection scheme claim, you will be able to claim your security deposit and sometimes extra compensation money.

Types Of Tenancy Deposit Protection Scheme

After you understand the beneficial aspects of the tenancy deposit protection scheme, it’s better to dig into the factors and know the types as well. After protecting the money with the protection scheme, a landlord needs to show the information regarding it to the tenant.

Well, there are two types of tenancy deposit protection schemes available in the market.

Insurance Based Scheme

This is a process where the landlord will be able to keep the money in their individual banks. But before that, they need to select a scheme provider and register with them. In addition, the landlord will be responsible for paying the premium of the insurance-based scheme.

At the end of the tenancy, the landlord is bound to pay back the deposit money, and if they don’t, a legal claim can be made against the person by the tenant.

Custodial Scheme

Unlike insurance-based schemes, where you are able to deposit the money to the bank, a custodial scheme lets you deposit the money to the scheme providers.

In this process, the provider of the scheme will be responsible for keeping the money and payback at the end of tenancy as per the agreement. The advantage here is that you, as a tenant or landlord, can claim the money at the end to satisfy the needs.

Way To Check For The Protection Of Your Tenancy Deposit

This is a million-dollar question for the tenants as they stay very confused about the protection of money throughout the tenancy period. However, you don’t need to worry if your tenancy is under a scheme.

According to the rules and regulations, it’s your landlord who is responsible for providing you with all the information. Even when your landlord is not showing you the details of the tenancy protection scheme, you will be able to check it on your own.

Tenancy start date.
Deposit amount.

These are the details that you need to input at the scheme provider’s platform.

What If Your Landlord Has Not Protected Your Deposit?

Don’t worry if you think that your landlord has not protected your security deposit. According to the rules and regulations, it’s their loss, not yours, unless you are not aware of the claims.

Well, you do not need to do much. You can ask them to do that, or else you can visit the attorney to get back your money. In this way, you will be able to get back your deposit money, and due to a late return or lack of proficiency from the landlord, you can claim compensation as well.

Which Deposit Protection Scheme Should You Go For? 

There is no particular good or bad protection scheme; however, try to go for the government-approved protection schemes. In this way, you will be able to get rid of fake schemes.

However, choosing the particular scheme depends more on the landlord as to where the person wants to protect the money.

Read more:
Deposit Protection Schemes: A Complete Guide To Protect Your Tenancy Deposit