What Single People Should Know About the Tenancy Deposit Scheme. Don’t let YOUR hard earned deposit get away!

Living alone can be great, but it certainly isn’t easy. The biggest barrier for most single people, is how much it costs to buy or rent a home without a partner. It’s not just the issue that comes with having to pay for crucial bills solo that poses a problem for us single folk.

There are plenty of extra “hidden” costs that come with buying or renting a home too. If you’re renting your property from a private landlord, rather than exploring the benefits of council housing, you’ll usually need to pay something called a tenancy deposit. That’s the deposit that protects your landlord, if you don’t adhere to the rules of your rental agreement, or damage your property in some way.

However, landlords can’t just do whatever they like with your deposit. They need to protect it, in a “Tenancy Deposit Scheme”, so they can give you your money back, if you follow the rules. As a single person, being able to reclaim your deposit at the end of a tenancy can be extremely valuable. So how do you know your money is protected?

What is a Tenancy Deposit Scheme? The Basics

A Tenancy Deposit Scheme (TDP) is a government-approved system that protects the money your landlord collects from you at the start of your rental agreement. The use of these schemes is mandatory for any landlord renting out a property on an assured shorthold tenancy (AST) basis, following April 2007. If you’re not renting your home on an AST, your landlord might accept certain valuable items as a deposit (like your car) instead of money. But these aren’t protected by a scheme.

Usually, the amount you pay for a deposit will be the same as about 4-5 weeks of rent. Notably, it’s illegal for a landlord to charge more than that on your deposit, or more than 6 weeks of rent if your annual rent is more than £50,000.

Of course, that doesn’t mean your tenancy deposit will be cheap. As of 2023, the average tenancy deposit is about £1,434. That’s a big ask for single people, who will need to spend about 64% of their single month’s income just to move into a new home. The Tenancy Deposit Scheme system is intended to ensure you can claim your money back – if you meet all the pre-agreed conditions in your original tenancy agreement. Within 30 days of receiving your deposit, your landlord needs to enter it into a scheme approved by the government. In England and Wales, the three approved options are:

ENGLAND & WALES
NORTHERN IRELAND
SCOTLAND

What Happens at the End of a Tenancy with a TDP?

When your tenancy ends, the government, and the Tenancy Deposit Scheme provider chosen by your landlord will make sure you get your deposit back, if you:

  • Have paid all your bills and rent.
  • Met the terms set by your tenancy agreement.
  • Didn’t damage the property.

Your landlord will need to ensure your deposit is sent back to you within ten days of you both agreeing on how much you’ll get back. In some cases, a landlord might withhold some of your deposit, based on damage to a property or other factors. However, they’ll have to prove there’s a legal right for them to retain that deposit.

You can also argue against your landlord’s decision on how much to give you, and your deposit will continue to be protected by the TDP scheme until an agreement is reached.

One quick note – the Tenancy Deposit Scheme protection only applies to your actual tenancy deposit. If you pay your landlord extra money to hold a property for you until an agreement is signed, this isn’t protected by the government.

What if You’re Evicted from a Property?

So what happens if you don’t just decide to end your tenancy, and you’re given a Section 21 eviction notice instead? The good news? You should still get your deposit back if your deposit wasn’t protected, or it was protected too late (after 30 days of you signing the agreement).

Your landlord also needs to provide “prescribed information” about your property and deposit. They won’t be able to evict you without this information. You can find some extra help on dealing with eviction notices on the Citizens Advice website.

How to Check if Your Money is in a Tenancy Deposit Scheme

With the cost of living crisis to contend with, and the growing issue of the single tax to think about single people really do benefit from all the financial help they can get. The last thing you want is to end up without a deposit, despite following all the right tenancy rules.

There are plenty of decent and honest landlords out there that will play by the rules, but we’ve all met a few bad apples in our time. So if you want to double-check your deposit is protected, you can reach out to one of the approved TDP scheme providers for an insight. All you need is your postcode, surname, the amount of your deposit, and your tenancy start date.

Here’s where you can get in touch:

Deposit Protection Service (DPS) Tel: 0330 303 0030
Mydeposits Tel: 0333 321 9401
Tenancy Deposit Scheme (TDS) Tel: 0300 037 1000(insurance scheme) Tel: 0300 037 1001 (custodial scheme)

If none of these companies can tell you whether your deposit has been protected, you’ll need to speak to your landlord. If you discover your landlord hasn’t protected your deposit, don’t panic. You’ll still be able to claim back any deposit money you’re owed, and you might be able to get compensation from the landlord that didn’t follow the rules. You can find some great advice on getting your tenancy deposit back on the Citizen’s Advice website

Tenancy Deposit Protection: Tips for Retrieving your Deposit

Your tenancy deposit isn’t just another hidden payment you might not have expected to encounter when renting a home, like the cost of replacing a key. It’s money you give your landlord temporarily as a kind of guarantee that you’re going to look after their property.
That means if you care for the home correctly, and avoid breaking any rules, you deserve to get your money back. Here are some of our top tips for success:

  • DOUBLE CHECK YOUR DEPOSIT IS PROTECTED
    Most landlords probably will follow the rules and protect your deposit in an approved scheme. Your landlord can choose the scheme, and must provide you with written information to show you where your money is protected.
    If you don’t get this information, reach out to the schemes using the information we shared above, or connect with your local Citizens Advice office for more guidance.

  • READ UP ON THE RULES
    Most landlords probably will follow the rules and protect your deposit in an approved scheme. Your landlord can choose the scheme, and must provide you with written information to show you where your money is protected.
    If you don’t get this information, reach out to the schemes using the information we shared above, or connect with your local Citizens Advice office for more guidance.

  • CONNECT WITH YOUR LANDLORD IMMEDIATELY AT THE END OF A TENANCY
    After your tenancy ends, you and your landlord will need to agree on how much of the deposit you gave will be returned to you. The quicker you have this conversation, the quicker you’ll be able to argue against any issues you have with their proposal.
    Once you both agree on the return, your money has to be paid back to you within 10 days. So follow up with Citizens Advice, or the TDP scheme provider if you don’t see your money within this timeframe.

  • BE READY TO ARGUE YOUR CASE
    Accidents happen in any home. A little damage to some wallpaper, or a scratch on some hardwood floor could be enough for your landlord to retain some of your deposit. It’s a good idea to take pictures of the home and any problems you notice as soon as you move in, so you can argue that you weren’t responsible for certain damages – if necessary.
    Also, if you find out your landlord didn’t protect your deposit (like they were supposed to), you might be able to claim compensation. Here are some tips on how to do that.

  • DON’T BE AFRAID TO ASK FOR HELP
    If you’re worried about retrieving your deposit, struggling to find out if your deposit is protected, or just dealing with a pesky landlord, there is help out there. Here are some resources to check out:

Don’t Miss Out on Reclaiming Your Deposit

Every penny counts for single people – particularly right now. Don’t just ignore the fact that your landlord has a duty to protect your deposit and give it back to you if you follow your tenancy rules.

If you need more help understanding your rights as a tenant in the world of private renting, social housing, council homes, and housing associations, you can also find some useful guides here on this blog.