Deposit Protection: The 30-Day Rule
Why protecting deposits within 30 days is crucial
The 30-day deposit protection rule is one of the most important (and commonly broken) landlord obligations.
The Rule:
You MUST protect your tenant's deposit in a government-approved scheme within 30 days of receiving it.
Why It Matters:
If you miss this deadline, you could face:
- Penalty of 1-3x the deposit amount
- Inability to serve a valid Section 21 notice
- Court costs if tenant takes action
The Three Approved Schemes:
1. Tenancy Deposit Scheme (TDS)
2. Deposit Protection Service (DPS)
3. MyDeposits
All are free to use and government-approved.
What You Must Do:
1. Protect the deposit within 30 days
2. Provide prescribed information to tenant within 30 days
3. Keep proof of both actions
Prescribed Information Includes:
- Amount of deposit
- Address of property
- Which scheme protects it
- How to apply for release
- How disputes are resolved
Common Mistakes:
❌ Waiting until end of tenancy to protect
❌ Not providing prescribed information
❌ Protecting wrong amount
❌ Losing proof of protection
Top Tips:
✓ Protect immediately after receiving deposit
✓ Use email for prescribed info (creates paper trail)
✓ Keep all documentation in tenant file
✓ Set calendar reminder for 25 days as backup
What If You Miss the Deadline?
If you've missed the 30-day deadline:
1. Protect the deposit immediately
2. Provide prescribed information
3. Be aware you cannot serve Section 21 until 3 months after protection
4. Tenant may claim compensation
Remember: This is one area where there's no flexibility. The 30-day rule is absolute.
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Guidance only. Landlord Handbook provides practical information to help landlords understand their responsibilities. It is not legal or financial advice. Always check the latest GOV.UK guidance and seek professional advice where appropriate.