If you choose an insured scheme, you keep the tenant’s deposit, and you pay the deposit protection company a fee to insure it. For example, they shouldn't deduct money just because you smoked or kept a pet in the property if this didn't cost them any extra money. We see very few holding deposit forfeits with sums near half this size. Saiful Ahmed, from DAS Law, explains what you can charge for under the tenancy deposit scheme: holding deposits, capped at one week’s rent security deposits, capped at five weeks’ rent where the annual rent is less than £50,000 and six weeks’ rent where the annual rent is £50,000 or more Subscribe to our monthly newsletter and follow us on social media. Under the provisions of the United Kingdom Housing Act 2004 every landlord or letting agent that takes a deposit for an assured shorthold tenancy in England and Wales must protect the deposit under an authorised tenancy deposit scheme.The regulations came into effect on 6 April 2007, and were amended by the Localism Act 2011, taking effect from 6 April 2012. However, note that in England the tenant fees rules apply which limit the amount of deposit you can take to five weeks. If the tenancy was agreed on, or after 1 June 2019, then the maximum legal limit is five weeks rent unless the annual rent is over £50,000, in which case it is six weeks. Learn how to legally create a tenancy while following best practice for UK landlords. Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG. These are the Tenancy Deposit Scheme Northern Ireland, My Deposits Northern Ireland and the Letting Protection Service NI. Let us know in the comments below? From 1st June, landlords will only be able to take five weeks’ rent as a tenancy deposit. You will need to protect the deposit in an accredited deposit protection scheme and serve the tenants the prescribed information within 30 days of receiving the money. Measures are being put in place to regulate the fees charged to tenants by letting agents. The rules require you to give a copy of this tenancy deposit protection certificate to your tenants, and to anyone else who has contributed to the deposit. If they pay the deposit is it to me or Open Rent or directly to DPS? .css-1b53oxy-LinkUnderlined{color:#262626;-webkit-text-decoration:none;text-decoration:none;cursor:pointer;color:#007478;-webkit-text-decoration:underline;text-decoration:underline;}.css-1b53oxy-LinkUnderlined:hover{color:#007478;-webkit-text-decoration:underline;text-decoration:underline;}Read our full disclaimer. I don’t want to run afoul of the law without even knowing it! Try Rent Now. The government-approved deposit protection schemes in Scotland are the Letting Protection Service (LPS) Scotland, mydeposits Scotland, and SafeDeposits Scotland. Enter your property’s monthly rental price. OpenRent Co-Founder Adam Argues for Sensible ‘DSS’ Reform, Rent with No Deposit: a Guide to Deposit Replacement Insurance, Multiply your monthly rent by 12 to get the annual rent, Divide the annual rent by 52 to get the weekly rent, Multiply the weekly rent by 5 to get 5 weeks' worth of rent. One of the most common problems with landlord and tenants are Deposit disputes. With Rent Now, OpenRent can collect the deposit, register it, serve the prescribed information, collect the contract signatures and collect the rent, all for a one-off payment of only £49! But if you do, then you need to put it in the scheme within 30 days of getting it, and provide your tenants with a copy of the deposit protection certificate. Most UK landlords are required to put tenant deposits in a government-approved tenant’s deposit scheme. Get new landlord regulations straight to your inbox. Would the new deposit to DPS be protected? Get access to the latest Landlord News & Updates. Landlords are being reminded that there’s a solution if a tenant decides to breach their rental agreement by moving in a partner. If a landlord or letting agent does not protect a tenant’s deposit then they will have to pay them a minum of the amount of the deposit and a maximum of three times the deposit sum in compensation. Either write to the relevant party, or send them an email requesting the return of your deposit. PS I’m feeling very frustrated and fed up, there is no clear guidence here, no guidence on the DPS app only how to refund the full deposit, and they have not replied to my enquiry. Once your new tenant has paid the deposit for the property, you have to lodge it with a tenancy deposit scheme within 30 working days of the tenancy starting. Your landlord should have told you what scheme they used - Deposit Protection Service, My Deposits or Tenancy Deposit Scheme. Looking to switch or start a new policy? Even if they have a tenancy – which is unlikely. What is the maximum tenancy deposit in the UK? This usually happens within 5 – 10 days following your request. If you round up you will be breaking the law as you are charging more than 5 weeks rent (even if it is by 1p). We create this content for general information purposes and it should not be taken as advice. From 1st June, landlords will only be able to take five weeks’ rent as a tenancy deposit. Would you like to know any more about deposit protection scheme law? 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