A complete guide to protecting your rental deposit

In this modern world, people take care of various things and try to stay away from home to meet their needs and expectations.

Well, it is not easy to be away from home for a long time, but there is no other way to deal with the situations of today’s world.


Because our contemporary world is full of competition and uncertainties, you won’t be able to sit back and relax here. Reaching your goals requires adequate financial freedom. Financial freedom comes with advanced study, hard work, and determination, which isn’t always possible by staying where you’re from.

So, people go to various places and take rent from other people’s houses to stay and fulfill their dreams. But most people are unaware of the laws and regulations related to tenure.

Here we are going to discuss problems and solutions related to leasing.

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


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

Security deposit protection is by rule, and is a government initiative to protect your rental deposits that must be guaranteed by landlords.

This article is going to be vital for both renters and landlords.

What is the lease deposit protection scheme?

Lease Deposit Protection (TDP) is something landlords need to do to ensure their tenants’ money is safe and sound.

By law, if the lease starts after April 6, 2007, you must make sure the deposit money is protected.

However, there are some government-backed schemes that will ensure your tenants get their deposit back on time. Well, in just a few circumstances, they won’t get the security deposit back.

  • If they damage property.
  • If they don’t pay rent and bills.
  • If they do not honor the lease.

Also, a property owner will need to secure the deposit money within the scheme within 30 days of payment.

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

  • Lease deposit regime.
  • My Deposits.
  • Deposit Protection Service.

In various parts of the UK, the tenant must pay a certain amount of money as a security deposit to the landlord of the house. It can be equivalent to 4-5 times the weekly rent.

This is where the rental deposit protection regime comes in, which allows the owner to protect his land from the bad actions of the tenants. On the other hand, it also protects tenants from misuse of money by landlords.

A property owner may not accept that you have a security deposit, but with a rental deposit protection plan claim, you will be able to claim your security deposit and sometimes additional compensation money.

Types of rental deposit protection regime

After understanding the beneficial aspects of lease deposit protection scheme, it is better to delve into the factors and know the types as well. After protecting the money with the protection plan, the landlord must show the information to the tenant.

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

insurance based scheme

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

At the end of the tenancy, the landlord is obliged to return the deposit money, and if he does not, the tenant can file a legal claim against the person.

Custody Scheme

Unlike insurance-based schemes, where you can deposit the money with the bank, an escrow scheme allows you to deposit the money with the providers of the scheme.

In this process, the plan provider will be responsible for keeping the money and reimbursement at the end of the lease according to the contract. The advantage here is that you, as a tenant or owner, can claim the money at the end to meet the needs.

How to check the protection of your rental deposit

This is a million dollar question for tenants as they are very confused about money protection during the lease period. However, you need not worry if your lease is under a scheme.

According to the rules and regulations, it is your landlord who is responsible for providing you with all the information. Even if your landlord doesn’t show you the details of the tenancy protection scheme, he will be able to check it on his own.

  • Surname.
  • Lease start date.
  • Postcard.
  • Deposit amount.

These are the details you need to enter on the scheme provider’s platform.

What if your landlord hasn’t protected your deposit?

Don’t worry if you think your landlord hasn’t protected your security deposit. According to the rules and regulations, it is your loss, not yours, unless you are unaware of the claims.

Well, you don’t need to do much. You can ask them to do it, or you can visit the lawyer to get your money back. In this way, you will be able to recover the money from your deposit and, due to a late return or lack of competence of the owner, you will also be able to claim compensation.

Which Deposit Protection Scheme Should You Choose?

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

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

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