If you're a renter in the UK, you most likely will have paid a deposit before moving into your new place.
Here are 5 things you didn't know about deposit protection.
1. There are 3 different companies that offer protecting your deposit
Those companies are:
- Deposit Protection Service (DPS)
- Tenancy Deposit Scheme (TDS)
2. If your landlord doesn't protect your deposit within 30 days, you can get 3x your deposit back
Your landlord or the letting agent your landlord is working with has to make sure your deposit is protected, this is required by law. After you pay your deposit, they have 30 days to protect it.
3. There are two types of Deposit Schemes (custodial and insured)
There are two types of Deposit Schemes your landlord can choose from, custodial and insured.
A custodial scheme will hold the deposit for free, whereas an insured deposit scheme involves the landlord or letting agent holding the deposit in their own bank account and the scheme is then paid to ‘insure’ it.
4. Challenging a deposit deduction from your landlord or letting agent is free
If there's ever a dispute between you and the landlord, the Deposit Scheme will help you and the landlord resolve it in an impartial matter, meaning they won't take sides.
5. You have no choice as to how your deposit is protected
Rather sadly, even though it's your money, the choice of whether to have the deposit in a custodial or insured scheme is entirely up to your landlord.
Get your Lifetime Deposit
Did you know you also don't have to pay a double deposit when you move? With our Lifetime Deposit, you can take your existing deposit with you to your next place - making your move hassle-free. Sounds good? Sign up here