If you take a tenancy deposit on an Assured Shorthold Tenancy in England, you must protect it in a government-approved scheme within 30 days of receiving it, and you must give the tenant prescribed information in the same window. Getting either step wrong is one of the most common — and most expensive — mistakes a landlord can make.
The three approved schemes
England has three approved tenancy deposit schemes. All three are equally valid; the choice is about whether you want to hold the money yourself or hand it to the scheme.
- Deposit Protection Service (DPS) — offers both custodial (scheme holds the money) and insured options.
- MyDeposits — offers both custodial and insured options.
- Tenancy Deposit Scheme (TDS) — offers both custodial and insured options.
Custodial is free to use and the scheme holds the money — the simplest option and what we generally recommend for landlords who do not use a fully-managed agent. Insured lets you keep the deposit in your own account but you pay a per-tenancy fee and must be ready to pay out on a scheme decision.
The 30-day rule
You have 30 calendar days from receiving the deposit to (a) protect it in one of the schemes and (b) give the tenant the prescribed information. Both parts must be done — protecting the money without serving the prescribed information counts as a failure. The clock starts when the money hits your account, not when the tenancy starts.
Prescribed information
The scheme you use gives you a template. In summary you must tell the tenant:
- Which scheme is protecting the deposit and the scheme's contact details.
- The amount of the deposit and the property it relates to.
- The landlord's and tenant's names and contact details.
- The circumstances in which all or part of the deposit may be retained.
- How to apply to get the deposit back at the end of the tenancy.
- What happens if the landlord and tenant disagree.
You need signed confirmation the tenant received it. Keep the certificate and the signed prescribed information for the life of the tenancy plus at least 6 years.
Consequences of getting it wrong
- A court can order you to pay the tenant between 1× and 3× the deposit as a penalty.
- You cannot serve a valid Section 21 notice until the deposit is either protected correctly or returned in full to the tenant.
- The tenant can bring the claim at any point during the tenancy — and for up to 6 years after it ends.
Renewals and re-serving prescribed information
When a fixed-term tenancy ends and a statutory periodic tenancy begins, the deposit stays protected — the scheme cover continues automatically. If you sign a brand new fixed-term tenancy with the same tenant (a "renewal"), most schemes require you to re-issue the prescribed information for the new tenancy even though the money doesn't move.
How KeyMoment fits in
KeyMoment's Tenant Find service does not hold client money. On a Tenant Find instruction we administer the AST paperwork and prompt you to protect the deposit in your chosen scheme; the money moves directly from the tenant to you (or to the custodial scheme), and you retain responsibility for protection and prescribed information. If you would prefer the whole deposit workflow handled for you, that sits under a full management service — Tenant Find hands the property back to you at move-in.
This guide is general information for North East landlords, not legal advice. Check GOV.UK and the scheme you use for the current rules, and take independent advice on specific tenancies.