Deposit Protection Compliance

Deposit Protection Compliance

In England and Wales, landlords must protect tenancy deposits in a government-approved scheme within 30 days of receiving them.

Approved Schemes

• DPS (Deposit Protection Service) — Custodial (free) or insured.
• MyDeposits — Custodial or insured options.
• TDS (Tenancy Deposit Scheme) — Custodial or insured options.

Custodial vs Insured

• Custodial — The scheme holds the deposit. Free to use.
• Insured — You hold the deposit but pay the scheme a fee for insurance.

What You Must Do

1. Protect the deposit within 30 days of receiving it.
2. Serve prescribed information to the tenant within 30 days, including:
   • Which scheme is used and their contact details.
   • Your name and contact details.
   • The deposit amount.
   • How to apply for the deposit return.
   • What to do if there is a dispute.

Tracking in Latch

Record deposit details on the lease:

1. Open the lease and go to the Deposit section.
2. Enter the scheme, reference number, and protection date.
3. Latch tracks whether prescribed information has been served.

Penalties

Failure to protect a deposit or serve prescribed information can result in:

• Compensation of 1x to 3x the deposit amount.
• Inability to serve a Section 21 notice.

Tip: Protect deposits on the same day you receive them — this eliminates any risk of missing the 30-day deadline.