A Brief Guide to Tenancy Deposit Protection (TDP) – Home Damage & Disrepair Claims

A Brief Guide to Tenancy Deposit Protection (TDP)

A deposit is a set amount, usually equivalent to 4-6 weeks’ worth of rent that is given by the tenant to the landlord at the beginning of the agreed tenancy. The deposit works as a financial security net for the landlord in case the tenant causes any destructions to the rented property or to the belongings inside the property. Landlords, however, are obliged by law to protect the deposit within a TDP scheme and not use it for personal reasons.

What is the Tenancy Deposit Protection scheme?

When landlords are renting out their properties to tenants, they are advised to take a deposit from the tenant. As of 6th April 2007, landlords are obligated by law to put the deposit into a government-approved tenancy deposit scheme. Landlords ought to inform the tenant as to which scheme has been chosen to safeguard the tenant’s deposit, within 30 days of receiving the deposit.

What is the law behind it?

Within 30 days of receiving the deposit, the landlord must put the deposit in one of the tenancy deposit schemes. Failing to do so, will result in:

    • the tenant may make a complaint at the local court
    • the court may order the landlord to repay the deposit to the tenant
    • the court may order the landlord to protect the deposit in a TDP scheme within 14 days
    • the court may order the landlord to compensate up to three times the value of the deposit to the tenant
    • evicting a tenant would be difficult

What government approved TDP schemes are there?

In England and Wales deposits can be registered with:

    • Deposit Protection Service
    • MyDeposits
    • Tenancy Deposit Scheme

Can a landlord keep the deposit?

After the end of the tenancy, tenants must ask for their deposit back. The landlord will then come back with a reply and state whether they will refund the whole amount of the deposit, keep the deposit or deduct part of the deposit. If the landlord comes back with a reply in which a deduction or a retention of the deposit is suggested, the landlord must provide a detailed list with the suggested reductions and reasoning for doing so.