Tenancy Deposit Scheme

A simple guide for tenants and landlords on how deposits are handled and protected.

What is a tenancy deposit scheme?

When a tenant pays a deposit for a private rented property, the money must be held in a government-approved tenancy deposit scheme rather than kept in the landlord or agent’s own account. The scheme holds the money safely and helps make sure it is returned fairly at the end of the tenancy, depending on any agreed deductions.

Key points for landlords and tenants

• The deposit must be lodged with an approved tenancy deposit scheme within 30 working days of the tenancy starting.
• The tenant must be told in writing which scheme is holding the deposit, how much was lodged, and the property address the deposit relates to.
• The deposit is held by the scheme for the duration of the tenancy, not by the landlord or letting agent.
• At the end of the tenancy, the deposit is returned once any agreed deductions for rent arrears or damage have been confirmed.

Approved schemes in Scotland

In Scotland, deposits are protected by approved schemes such as SafeDeposits Scotland, My Deposits Scotland and The Letting Protection Service Scotland. Tenants can check directly with these schemes if they are unsure where their deposit is held.

What information should tenants receive?

Within 30 working days of the tenancy starting, tenants should receive written confirmation that includes:

• the amount of the deposit and the date it was received
• the date it was paid into the tenancy deposit scheme
• the name and contact details of the scheme
• the address of the rented property
• an explanation of when some or all of the deposit may be kept at the end of the tenancy

At the end of the tenancy

When the tenancy ends, the landlord and tenant agree how much of the deposit should be returned. If there is a disagreement about deductions, the scheme offers a free, impartial dispute resolution service, and holds the money until the dispute is resolved.

Need more detailed guidance?

This page is a general overview only and is not legal advice. For the most up-to-date and detailed information, you can check official sources such as mygov.scot, Shelter Scotland, or the tenancy deposit schemes themselves.