The Legal Framework: What Every Landlord Must Do Under the Housing Act 2004 and subsequent regulations, all assured shorthold tenancies (ASTs) in England require you to:

1. Choose an Approved Scheme
• There are three government-recognised deposit protection schemes:
• Deposit Protection Service (DPS) – custodial and insured options
• MyDeposits – insurance-backed only
• Tenancy Deposit Scheme (TDS) – custodial and insured options

2. Protect the Deposit Within 30 Days
• From the tenant’s first payment, you have 30 calendar days to register their deposit with your chosen scheme.

3. Provide the “Prescribed Information”
• Within the same 30-day window, you must give your tenant:
• The scheme’s name and contact details
• The deposit amount and repayment terms
• Information on how to challenge deductions
• Details of the tenancy and landlord/agent

4. Hold the Deposit Fairly
• Do not mix the deposit with personal funds. If you’re using an insurance-backed scheme, you continue to hold the deposit in a separate client account.

5. Return the Deposit Promptly
• After the tenancy ends, you should agree deductions (if any) and repay within 10 days of both parties reaching an agreement—or of a dispute decision from the scheme adjudicator.

6. Consequences of Non-Compliance
• Financial Penalties: Up to 3× the deposit value paid back to the tenant.
• No Section 21 Notice: You cannot serve a valid “no-fault” eviction notice until the deposit is properly protected.
• Damage to Reputation: Tenants and agents check compliance; non-compliant landlords struggle to attract quality tenants.