Asking for a deposit as a private landlord

You can ask your tenant for a deposit of up to 2 months’ rent.

In most cases, you must protect their deposit in one of 3 tenancy deposit schemes.

What a deposit is for

The deposit is money to cover costs when your tenant moves out, such as:

• unpaid rent or bills
• damage to the property
• items missing from the inventory
• cleaning bills if they do not leave the property in a reasonable condition

If there are no costs, you must return their deposit in full when they move out.

You cannot use the deposit to replace items that are damaged or worn due to normal wear and tear.

Fees you must not charge

It’s against the law to charge your tenant any other fees for starting or renewing a tenancy.

This includes:

• key money
• credit check fees
• administration fees
• a non-refundable holding deposit

These are illegal fees and the tenant can claim them back.

At the end of the tenancy

You must follow rules for returning a deposit.