DepositGuard - Frequently Asked Questions
Why do I have to protect a deposit?
Under the provisions of the UK Housing Act 2004, any landlord or agent who takes a deposit from a tenant for an assured shorthold tenancy after April 2007, must register the deposit with a Government-approved tenancy deposit protection scheme. As per the regulations, the landlord or agent must also serve all the required documentation to the tenant and anyone who has contributed towards the deposit.
Landlords who fail to protect the deposit within 30 days of receipt may risk fines of three times the amount of the deposit and cannot serve a Section 21 notice of eviction.
Who can use DepositGuard?
DepositGuard is an exclusive service for members of the RLA.
DepositGuard can only be used by landlords wanting to protect deposits for properties they own and manage themselves. The scheme is not available to letting and managing agents.
Can I keep hold of the deposit?
Yes, if you choose to use the insurance-backed option, you can hold the deposit.
Alternatively, you can use the free custodial option where TDS holds the deposit.
How much does it cost to register with DepositGuard?
It is free for RLA members to register with DepositGuard.
Want to use DepositGuard? Click here to join the RLA today.
How much does it cost to protect a deposit?
DepositGuard offers the best rates on insured deposit protection.
For a deposit value up to £500 = £13.20 For a deposit value over £500 = £17.95
Alternatively, DepositGuard offers free Custodial deposit protection.
How do I use DepositGuard?
From registering a deposit to ending a tenancy, each stage of managing a deposit is completed online and accessed through your RLA account.
Want to add another landlord to your DepositGuard account?
If you have another landlord associated with your membership who wishes to use DepositGuard (either in their own name or the company name), please ensure that person logs into the RLA website using their own login details.
If you have not yet set up any associated landlords on your membership, you can add them on your associates page under myRLA.
I've protected the deposit with DepositGuard, what do I need to give my tenant?
It is a legal requirement to give tenants information on where their deposit is protected. Once you have protected the deposit, you should give the tenant and anyone who has contributed towards the deposit the following documents:
- A copy of the Tenancy Deposit Protection Certificate
- Prescribed Information (completed with all relevant tenancy - specific details)
- The leaflet for the relevant scheme (Insured - What is the Tenancy Deposit Scheme? or Custodial - An advisory leaflet for landlords and tenants)
What happens when my tenancy goes to periodic?
Using DepositGuard means that your tenancy is protected throughout its life - including when it continues onto a same terms statutory periodic tenancy - and at no extra cost.
After recent changes to legislation, provided no details have changed when the tenancy becomes periodic, then there should be no need to serve any further prescribed information. If details have changed however, please read our guidance on prescribed information.
What happens if I can't reach a resolution with the tenants?
If at the end of the tenancy, you can't agree a settlement over the deposit with your tenants, TDS offer a free dispute resolution service.
Either party can raise a dispute, either within three months of tenancy end in the Insured scheme or for an indefinite period in the Custodial scheme.
TDS will invite both parties to submit their comments and evidence before passing the case through to an adjudicator to reach a decision on how the deposit should be distributed.
Need further guidance?
Whether there is a change to the tenancy during the agreement, or you are seeking advice on additional clauses, please call the RLA's Advisors on 03330 142 998.