When you must protect a tenancy deposit
You must protect the deposit in a tenancy deposit scheme unless you’re exempt.
You must do this within 30 working days of the tenancy starting.
The scheme protects your tenant’s money until the end of the tenancy. You cannot access the money or use it during the tenancy.
Tenancy deposit schemes you can use
There are 3 government-approved schemes in Scotland:
If you do not protect the deposit in one of these schemes, you’re breaking the law.
Check if you’re exempt from using a tenancy deposit scheme
You do not need to use a deposit protection scheme if any of the following apply:
- you return the full deposit to the tenant within 30 working days of the start of the tenancy
- you live in the property
- you're renting to a family member, not including cousins
- you're renting to a religious organisation
- you're renting out supported accommodation
- you're renting out an agricultural or crofting tenancy
- the property is subject to control orders
- you're letting out a holiday home
Deposit details you must give your tenant
Within 30 days of the tenancy starting, you must tell your tenant in writing:
- the address of the rented property
- how much deposit they paid and when you got it
- the date you paid it into a scheme
- the scheme's name and contact details
- that you’re registered as a landlord, or have applied to register
- when you would want to keep some or all the deposit at the end of the tenancy
At the end of the tenancy
You must follow rules for returning a deposit.
If you fail to protect your tenant’s deposit
Your tenant can take you to the First-Tier Tribunal for Scotland (Housing and Property Chamber).
The tribunal can order you to:
- protect the deposit if the tenant still lives in the property
- return the deposit if they’ve moved out
- pay them compensation of up to 3 times the deposit amount
The tenant can apply to the tribunal either:
- during the tenancy
- up to 3 months after their tenancy ends