In England and Wales, if you rent out your home on an assured shorthold tenancy that started after 6 April 2007, you must place your tenants’ deposit in 1 of 3 tenancy deposit protection (TDP) schemes:
Deposit Protection Service MyDeposits Tenancy Deposit SchemeThese government-backed schemes ensure your tenants will get their deposit back if they:
meet the terms of your tenancy agreement don’t damage the property pay the rent and bills
At the end of the tenancy
If you and your tenants agree how much deposit they’ll get back, it must be returned to your tenants within 10 days of the tenancy ending.If you’re in a dispute with your tenants, the deposit is protected in the TDP until the issue is settled.Deposits made by a third partyYou must use a TDP scheme even if the deposit is paid by someone else, like a rent deposit scheme or a tenant’s parents.
