Tenancy Deposits: A Guide for Tenants

What Happens to Your Deposit Before, During and After Your Tenancy

Paying a tenancy deposit is an important part of renting a home. The deposit provides financial security to the landlord, but it remains your money unless the landlord can justify a lawful and reasonable deduction at the end of the tenancy.

For most private tenancies in England, your landlord or letting agent must place the deposit in a government-approved tenancy deposit protection scheme. They must also give you information explaining where the deposit is protected and how it will be returned.

This guide explains:

• The difference between a holding deposit and tenancy deposit
• How much deposit you may be asked to pay
• What should happen after you pay it
• What to check when you move in
• How to protect your deposit during the tenancy
• What happens when you move out
• What deductions may be proposed
• How to challenge an unfair deduction

At Yes Properties, we want tenants to understand the deposit process from the beginning so that expectations are clear and avoidable disputes are reduced.

What Is a Tenancy Deposit?

A tenancy deposit is a refundable payment made by a tenant as security against certain losses that may arise during the tenancy.

Depending on the tenancy agreement and available evidence, a landlord may propose deductions for matters such as:

• Unpaid rent
• Damage beyond fair wear and tear
• Missing items
• Cleaning required to restore the property to its recorded check-in condition
• Lost keys or security devices
• Other breaches that caused the landlord a measurable financial loss

The deposit is not an additional fee or automatic payment to the landlord. The starting position is that it should be returned to you unless a deduction can be properly justified.

Holding Deposit and Tenancy Deposit: What Is the Difference?

These are two separate payments.

Holding Deposit

A holding deposit may be requested when you apply for a property. It temporarily reserves the property while referencing, affordability checks and tenancy arrangements are completed.

In England, a holding deposit is normally limited to no more than one week’s rent.

The holding deposit may later be:

• Refunded to you
• Applied towards your first rent payment
• Applied towards your tenancy deposit
• Retained in limited circumstances permitted by law

Before paying, you should receive clear information explaining:

• The amount
• What it is for
• The proposed tenancy
• The deadline for agreement
• The circumstances in which it may be retained
• How it will be treated if the tenancy proceeds

A holding deposit is not normally protected in a tenancy deposit scheme while it remains only a holding deposit. If it is converted into part of the tenancy deposit, the tenancy-deposit protection requirements then apply.

Tenancy Deposit

A tenancy deposit is held as security throughout the tenancy.

It must normally be protected in a government-approved tenancy deposit protection scheme, and you must be given information about that protection.

How Much Tenancy Deposit Can You Be Asked to Pay?

For most private tenancies in England, the maximum refundable tenancy deposit is:

The usual five-week and six-week limits are established under the Tenant Fees Act rules.

Example Calculation

For monthly rent of £1,800:

£1,800 × 12 = £21,600 annual rent

£21,600 ÷ 52 = £415.38 weekly rent

£415.38 × 5 = £2,076.90 maximum tenancy deposit

The deposit applies to the tenancy as a whole. In a joint tenancy, the landlord cannot normally charge each tenant a separate five-week deposit based on the full rent.

When Should You Pay the Tenancy Deposit?

You should only pay after you have received enough information to understand:

• Which property you are renting
• The amount of rent
• The proposed tenancy arrangements
• Who is receiving the money
• Whether the payment is a holding deposit, tenancy deposit or rent
• How payment should be made
• What receipt or confirmation you will receive

Before transferring money, check that the bank details genuinely belong to the landlord or authorised letting agent.

Be cautious about:

• Pressure to transfer money immediately
• Payment to an unrelated individual
• Requests for cash without a receipt
• Unexpected changes to bank details
• Properties you have not viewed or properly verified
• Requests made solely through social media or messaging applications

Where Yes Properties receives a deposit, you will be given formal payment instructions and a record of the payment.

What Must Happen After Your Deposit Is Paid?

For a qualifying private tenancy in England, the landlord or letting agent must normally:

1. Protect the deposit in a government-approved scheme
2. Complete the protection within 30 days of receiving the deposit
3. Give you the required deposit information within the same 30-day period
4. Give the information to any relevant person who paid the deposit on your behalf

The prescribed information must explain matters including the deposit amount, the scheme used, how repayment works, why deductions may be proposed and how disputes are handled.

Government-Approved Deposit Protection Schemes

The approved providers operating in England are:

• Deposit Protection Service — DPS
• MyDeposits
• Tenancy Deposit Scheme — TDS

Your deposit certificate or prescribed information should identify the scheme used.

Yes Properties is registered with the Deposit Protection Service, membership reference 4025820.

The exact protection arrangement applying to your tenancy will be stated in your deposit documents.

Custodial and Insured Protection

There are two main ways a deposit may be protected.

Custodial Protection

Under a custodial arrangement:

• The landlord or agent transfers the deposit to the scheme
• The scheme holds the money during the tenancy
• Repayment is arranged through the scheme
• Any disputed amount remains with the scheme until the dispute is resolved

Insured Protection

Under an insured arrangement:

• The landlord or agent retains the deposit
• A protection fee is normally paid to the scheme
• The deposit remains protected under the scheme’s rules
• Any disputed amount must be transferred to the scheme when required

Both methods are legitimate. Your protection documents should explain which one applies.

What Information Should You Receive?

Within 30 days after receiving the deposit, the landlord or agent should provide information that includes:

• The rented property’s address
• The amount of deposit paid
• The name and contact details of the protection scheme
• How the deposit is protected
• The scheme’s dispute-resolution arrangements
• The landlord’s or agent’s contact details
• Details of any third party who paid the deposit
• Circumstances in which deductions may be requested
• How you can apply for repayment
• What happens if the parties disagree
• What happens if one party cannot be contacted

These requirements are commonly referred to as the prescribed information requirements.

Keep copies of:

• Deposit certificate
• Prescribed information
• Tenancy agreement
• Payment receipt
• Scheme terms and conditions
• Emails confirming service of the documents

How to Check That Your Deposit Is Protected

Once you receive the certificate, check that it contains the correct:

• Property address
• Deposit amount
• Tenancy start date
• Tenant names
• Landlord or agent details
• Deposit scheme
• Protection reference
• Lead tenant, if applicable

You may also use the deposit scheme’s online checking service.

Contact the landlord, agent or scheme promptly where:

• You have not received the documents within 30 days
• Your name is missing
• The property address is wrong
• The protected amount is incorrect
• You cannot locate the protection using the reference supplied
• You believe the deposit has been registered under the wrong tenancy

Do not wait until you are moving out to investigate a possible problem.

What Is a Relevant Person?

A relevant person is someone other than the tenant who paid some or all of the deposit on the tenant’s behalf.

This may include:

• A parent
• Family member
• Guarantor
• Employer
• Charity
• Local authority
• Another third party

Where applicable, the relevant person should also receive the required deposit information.

Tell the agent clearly when the payment is coming from someone other than a named tenant.

Before You Move In

The strongest protection against deposit disputes begins before you receive the keys.

Read the Tenancy Agreement

Check the terms relating to:

• Rent
• Deposit
• Cleaning
• Repairs
• Garden maintenance
• Keys
• Pets
• Smoking
• Alterations
• Reporting damage
• End-of-tenancy obligations

Ask for clarification before signing where a clause is unclear.

Review the Inventory and Check-In Report

The inventory should record:

• Contents supplied
• Condition of furniture and fittings
• Cleanliness
• Walls, floors and ceilings
• Appliances
• Doors and windows
• Bathrooms and kitchen
• Outdoor areas
• Meter readings
• Keys supplied

A detailed inventory is important because it provides a comparison between the condition at the beginning and end of the tenancy.

Check the Photographs

Make sure the photographs clearly show:

• Existing marks
• Scratches
• Stains
• Cracks
• Damaged furniture
• Worn carpets
• Cleanliness
• Mould or discolouration
• Garden condition

Report Missing or Incorrect Information

Do not sign or accept an inaccurate inventory without commenting.

Where you notice something that has been missed:

1. Photograph it clearly
2. Describe its location
3. Email the landlord or agent
4. Ask for the report to be amended
5. Retain evidence that you raised it promptly

Complete this within the inventory-review period stated in your tenancy documents.

Take Your Own Photographs

Even where a professional inventory has been prepared, it is sensible to keep your own dated photographs.

Take clear images of:

• Every room
• Floors and carpets
• Walls and ceilings
• Windows and doors
• Kitchen appliances
• Bathroom fittings
• Furniture
• Gardens and balconies
• Meter readings
• Existing damage
• General cleanliness

Store the photographs safely for the entire tenancy and until the deposit has been fully repaid.

During the Tenancy

Your conduct and records during the tenancy can affect the final deposit settlement.

Pay Rent on Time

Keep:

• Bank statements
• Transfer confirmations
• Rent receipts
• Statements issued by the agent

Report any payment problem as early as possible rather than allowing arrears to build without communication.

Report Repairs Promptly

Tell the landlord or agent about repair and maintenance issues as soon as reasonably possible.

This is particularly important for:

• Water leaks
• Damp or mould
• Boiler faults
• Electrical concerns
• Broken locks
• Damaged windows
• Appliance failures
• Roof or drainage problems

A tenant may face difficulty where a minor problem became significantly worse because it was not reported.

Keep copies of repair reports, emails and photographs.

Do Not Make Unauthorised Changes

Obtain written permission before:

• Repainting
• Installing fixtures
• Changing locks
• Removing furniture
• Keeping a pet where permission is required
• Making alterations
• Mounting substantial items to walls
• Allowing another person to move in

Look After the Property Reasonably

This may include:

• Keeping the property reasonably clean
• Using ventilation and heating appropriately
• Replacing ordinary consumables where required
• Avoiding drain blockages caused by misuse
• Keeping gardens reasonably maintained where agreed
• Preventing avoidable damage
• Following appliance instructions
• Reporting defects promptly

Keep Written Records

Where a matter might later affect the deposit, communicate by email or another recordable method.

Written evidence is much stronger than relying solely on a telephone conversation months later.

Property Inspections During the Tenancy

The landlord or agent may arrange periodic inspections after giving appropriate notice and agreeing access.

These inspections can help identify:

• Maintenance issues
• Leaks or damp
• Damage
• Safety concerns
• Garden condition
• Repairs requiring further investigation

An inspection is also an opportunity for you to raise concerns.

Where an issue is identified, ask for:

• A written summary
• Confirmation of the proposed action
• An estimated timetable
• Details of any access required

Routine inspections are not the same as the final check-out inspection.

Changes to the Tenancy

Tell the landlord or agent before making changes such as:

• Replacing a joint tenant
• Adding an occupier
• Changing the lead tenant
• Changing your name
• Changing contact details
• Altering who contributed to the deposit
• Moving out while another joint tenant remains

A change in tenants may require updates to:

• The tenancy agreement
• Deposit registration
• Prescribed information
• Deposit ownership arrangements

Do not assume that your share of a joint deposit will automatically be released when you leave.

Joint Tenancies and Deposits

Where several people rent together under one joint tenancy, there will commonly be one deposit for the whole tenancy.

This can mean:

• All tenants may be jointly responsible for the property
• Damage caused by one tenant may affect the total deposit
• Rent arrears may be considered against the joint deposit
• The scheme may communicate through a nominated lead tenant
• Repayment may require agreement between the joint tenants

Before moving in, agree between yourselves:

• Who contributes what amount
• Who will act as lead tenant
• How repayment will be divided
• How shared damage or cleaning costs will be handled

Keep a record of each person’s contribution.

Preparing to Move Out

Do not wait until the final day to begin preparing.

Check Your Notice Requirements

Since 1 May 2026, most private assured tenancies in England operate as assured periodic tenancies. Tenants should check the current rules, their written tenancy information and the notice required before leaving.

Give notice correctly and retain evidence showing:

• The date it was sent
• Who received it
• The intended final tenancy date
• Any acknowledgement

Leaving the property does not necessarily end the tenancy or rent liability unless the correct process has been followed.

Request a Copy of the Check-In Report

Use the original inventory as your moving-out checklist.

Compare each room and item against its recorded starting condition.

Report Outstanding Repairs

Remind the agent of repairs that remain unresolved, particularly where they may affect the check-out condition.

Arrange Cleaning

The property should normally be returned to the same general standard of cleanliness recorded at check-in, allowing for reasonable use and fair wear and tear.

Pay attention to:

• Oven and hob
• Fridge and freezer
• Kitchen cupboards
• Bathrooms
• Limescale
• Floors and carpets
• Windows where accessible
• Skirting boards
• Furniture
• Gardens
• Bins
• Personal possessions

You cannot normally be required to pay for a compulsory professional cleaning service merely because the tenancy has ended. However, you may be responsible for reasonable cleaning costs if the property is returned less clean than it was at check-in.

Remove All Belongings

Check:

• Cupboards
• Loft or storage areas
• Garden sheds
• Garages
• Balconies
• Fridge and freezer
• Washing machine
• Behind furniture
• Communal storage areas

Removing abandoned items may result in reasonable clearance or storage costs.

Return All Keys

Return:

• Main entrance keys
• Window keys
• Mailbox keys
• Garage keys
• Fobs
• Parking permits
• Alarm controls
• Any duplicate keys supplied

Obtain written confirmation of what was returned and when.

Your Moving-Out Deposit Checklist

Before handing back possession:

• Give valid notice
• Pay all rent due
• Review the tenancy agreement
• Compare the property with the inventory
• Complete required cleaning
• Remove personal belongings
• Dispose of rubbish correctly
• Restore authorised changes where required
• Report outstanding repairs
• Photograph every room
• Record final meter readings
• Return all keys and fobs
• Provide a forwarding address
• Supply repayment details through the secure scheme process
• Keep all documents until the deposit is settled

The Check-Out Inspection

A check-out report compares the property at the end of the tenancy with its condition at check-in.

It may record:

• Cleanliness
• Damage
• Missing items
• Decoration
• Garden condition
• Meter readings
• Keys returned
• Changes since check-in
• Recommended further investigation

The check-out report does not itself decide how the deposit will be divided. It provides evidence for the landlord, tenant and, where necessary, the deposit scheme.

You may ask for a copy of the report and an explanation of any proposed deductions.

What Is Fair Wear and Tear?

Fair wear and tear is the ordinary deterioration that occurs through normal use of a property over time.

A landlord should not normally charge you for reasonable ageing or ordinary use.

What counts as fair wear and tear may depend on:

• Length of the tenancy
• Number of occupants
• Age and original condition of an item
• Quality of materials
• Expected useful lifespan
• Location and frequency of use
• Difference between normal deterioration and actual damage

Examples may include:

• Minor carpet flattening
• Light marks from ordinary use
• Fading caused by sunlight
• Reasonable ageing of decoration
• Gradual wear to frequently used fittings

Examples more likely to be treated as damage may include:

• Burns
• Large stains
• Broken doors
• Holes beyond ordinary picture fixings
• Missing furniture
• Pet damage
• Deliberate or careless breakage

Each case depends on the evidence and circumstances.

Betterment: The Landlord Cannot Benefit Unfairly

A deposit deduction should compensate the landlord for a genuine loss. It should not leave the landlord in a better position than before the tenancy.

For example, if an older carpet is damaged, it may not be reasonable to charge the tenant the entire cost of replacing it with a new premium carpet.

Factors that may be considered include:

• Original age
• Original condition
• Expected lifespan
• Length of tenancy
• Remaining value
• Extent of damage
• Repair versus replacement cost

This principle is commonly known as avoiding betterment.

Common Deposit Deductions

Unpaid Rent

The landlord may propose a deduction where rent remains unpaid.

Check the landlord’s rent statement against your own bank records.

Damage Beyond Fair Wear and Tear

The landlord should identify:

• What was damaged
• Its condition at check-in
• Its condition at check-out
• Why you are responsible
• The repair or replacement cost
• Any allowance for age and prior condition

Cleaning

A cleaning deduction should relate to a difference between the check-in and check-out condition.

The landlord should not automatically deduct the cost of cleaning without evidence that the property was returned below the original standard.

Missing Items

The inventory should show that the item was present at check-in.

An allowance may be required for the age and existing condition of the missing item.

Lost Keys or Security Devices

A reasonable cost may be requested for missing keys, fobs or security devices.

Where a complete lock change is claimed, the landlord should explain why it was reasonably necessary.

Garden Condition

A deduction may be proposed where:

• The tenancy made the tenant responsible
• The starting condition was recorded
• The garden was returned in a materially worse condition
• The cost is reasonable and supported

Unauthorised Alterations

Costs may be proposed where the tenant altered or redecorated the property without permission and restoration is reasonably required.

What Should Not Normally Be Deducted?

A landlord should not normally deduct for:

• Fair wear and tear
• Damage that existed before you moved in
• Ordinary redecoration between tenancies
• Improvements chosen by the landlord
• Repairs that are the landlord’s responsibility
• Full replacement where an item had little remaining value
• Unsupported or unexplained charges
• Prohibited tenant fees
• Costs unrelated to your tenancy obligations
• A standard cleaning charge without evidence
• The same loss claimed more than once

Ask for a detailed breakdown where a deduction is unclear.

Receiving Your Deposit Back

At the end of the tenancy, the landlord or agent should review the rent account, check-out report and any proposed deductions.

Once you and the landlord agree the amount to be returned, the deposit should be repaid within 10 days. If part of the deposit remains disputed, that amount continues to be protected until the matter is resolved.

The exact repayment process depends on whether the deposit is protected through a custodial or insured scheme.

What to Do If a Deduction Is Proposed

Do not accept or reject it without first reviewing the evidence.

Ask for:

• A detailed itemised breakdown
• Check-in evidence
• Check-out evidence
• Photographs
• Invoices or quotations
• The age and original condition of damaged items
• An explanation of fair wear and tear
• The landlord’s calculation
• The rent statement where arrears are alleged

Respond clearly to each item.

You may:

• Agree with the full deduction
• Agree with part of it
• Propose a different amount
• Reject it and explain why
• Ask to use the scheme’s dispute-resolution process

Try to remain factual and focus on the evidence.

How a Deposit Dispute Works

Each government-approved scheme provides an alternative dispute-resolution service.

If agreement cannot be reached:

1. A repayment or dispute request is submitted
2. The parties are invited to provide evidence
3. The disputed money remains protected
4. An independent adjudicator reviews the evidence
5. The scheme distributes the deposit according to the decision

There may be a time limit for raising a dispute, so contact the deposit scheme promptly rather than allowing the matter to remain unresolved.

Evidence may include:

• Tenancy agreement
• Deposit certificate
• Prescribed information
• Inventory
• Check-in report
• Photographs
• Inspection reports
• Check-out report
• Rent records
• Repair correspondence
• Invoices and quotations
• Emails between the parties

The adjudicator decides how the deposit should be distributed. The service does not normally award additional compensation or decide unrelated legal claims.

How to Present a Strong Deposit Dispute

Be Organised

Address each deduction separately.

Use Dated Evidence

Label photographs and correspondence clearly.

Refer to the Inventory

Compare the precise check-in and check-out entries.

Explain Fair Wear and Tear

Consider the property, tenancy length, item age and number of occupants.

Challenge Betterment

Explain where a proposed charge would give the landlord a new item in place of an old or partly worn one.

Include Repair Reports

Show where you reported an issue during the tenancy.

Remain Factual

Avoid personal accusations and focus on the evidence supporting your position.

What If Your Deposit Was Not Protected?

First ask the landlord or agent:

• Which scheme was used
• The protection reference
• When the deposit was registered
• For a copy of the certificate
• For the prescribed information

You can also contact the three approved schemes to check whether they hold a record.

Where a qualifying deposit was not protected correctly, you may be able to apply to the county court. The court can deal with the deposit and may order the landlord to pay compensation. Government guidance recommends obtaining legal advice before starting a court claim.

Consider obtaining help from:

• Citizens Advice
• A housing solicitor
• A local authority housing team
• A recognised tenant-advice organisation

This page provides general information and is not a substitute for legal advice about an individual claim.

Deposit Replacement Products

Some properties may be offered with a deposit alternative or deposit replacement product.

This is not necessarily the same as a refundable cash deposit.

Depending on the product:

• You may pay a non-refundable fee
• The landlord may receive insurance or a guarantee
• You may remain responsible for damage, rent arrears or other losses
• Additional charges may apply
• The statutory deposit scheme may not hold money for you
• The provider may pursue you for a successful claim

Before agreeing, ask:

• Is the payment refundable?
• How much will it cost over the tenancy?
• What does the product cover?
• Can the landlord still claim against me?
• How are disputes handled?
• Would a normal cash deposit cost less?
• Can I choose between the two options?
• What happens if the tenancy continues for several years?

Read the terms carefully before deciding.

Frequently Asked Questions

Is my deposit the same as my final month’s rent?

No. You must continue paying rent according to your tenancy unless the landlord expressly agrees otherwise in writing.

You should not normally withhold the final month’s rent on the assumption that the deposit will cover it.

Can Yes Properties protect my deposit?

Yes Properties may protect and administer the deposit on the landlord’s behalf where this forms part of our instruction.

Your certificate will confirm the scheme and protection method used.

Which deposit scheme does Yes Properties use?

Yes Properties is registered with the Deposit Protection Service, membership reference 4025820.

How long does my landlord have to protect the deposit?

The deposit and required information must normally be dealt with within 30 days of receipt.

When should I receive my deposit back?

Once you and the landlord agree the repayment amount, it should be returned within 10 days.

Can the landlord charge for fair wear and tear?

No. A deduction should not normally be made for ordinary deterioration caused by reasonable use.

Do I have to pay for professional cleaning?

You may be required to return the property to the cleanliness standard recorded at check-in, but a landlord or agent cannot simply impose a compulsory cleaning fee regardless of condition.

What if I disagree with only one deduction?

You can agree the undisputed items and challenge the remaining amount. The disputed money should remain protected while the issue is resolved.

What if my parent paid the deposit?

Your parent may be treated as a relevant person and should normally be identified in the deposit documentation.

What if one joint tenant moves out?

Do not privately transfer the deposit share without informing the landlord or agent. The tenancy and scheme records may need to be updated.

Should I attend the check-out inspection?

Attendance may not always be possible or required, but ask about the process in advance. Take your own final photographs before returning the keys.

Can the landlord deduct an estimated amount?

A quotation may sometimes be considered, but the landlord should still demonstrate the loss and that the amount requested is reasonable.

The Yes Properties Deposit Process

Where Yes Properties manages the tenancy deposit, the process will generally include:

Before the Tenancy

1. Deposit amount confirmed
2. Payment instructions issued
3. Cleared funds recorded
4. Deposit registered with the applicable scheme
5. Certificate and prescribed information prepared
6. Documents supplied for review or signature
7. Inventory and check-in arranged where instructed

During the Tenancy

1. Deposit records retained
2. Relevant changes recorded
3. Repairs and inspections documented
4. Tenancy records maintained
5. Deposit protection kept under review

At the End of the Tenancy

1. Notice and departure arrangements confirmed
2. Check-out completed where instructed
3. Rent account reviewed
4. Proposed deductions considered
5. Evidence shared where deductions are requested
6. Repayment negotiated
7. Agreed funds released
8. Disputed amount referred through the scheme where necessary

Our aim is to make the process clear, evidence-based and fair to both landlord and tenant.

Need Help With Your Tenancy Deposit?

Contact Yes Properties where we manage your tenancy and you need assistance with:

• Locating your deposit certificate
• Understanding the prescribed information
• Correcting your contact details
• Reporting a change of tenant
• Preparing to move out
• Understanding the check-out process
• Responding to a proposed deduction
• Requesting deposit repayment

Contact Yes Properties

Telephone: 0208 191 3717
Email: info@yesproperties.co.uk
Website: yesproperties.co.uk

START WITH YES®