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Tenancy deposits: the rules for landlords

How much you can take, how to protect it, what you can fairly deduct at the end, and why an unprotected deposit can now stop you getting your property back.

Updated 10 October 2026

The short version

How much you can take

PaymentLimit
Holding deposit1 week's rent
Tenancy deposit, rent under £50,000 a year5 weeks' rent
Tenancy deposit, rent £50,000 a year or more6 weeks' rent
Rent in advance1 month, and only after the tenancy is signed

Work out a week's rent as the yearly rent divided by 52. On £1,300 a month, that's £300, so the maximum deposit is £1,500.

A holding deposit must be repaid within 7 days of the tenancy being agreed or falling through, unless it goes towards the first rent or the deposit. You can only keep it for set reasons, such as the tenant pulling out or giving false information, and you must tell them why in writing within those 7 days.

Protecting it

There are three schemes: the Deposit Protection Service, mydeposits and the Tenancy Deposit Scheme. Each offers two options:

Within 30 days, give the tenant the prescribed information: the deposit amount, the scheme's details and dispute service, your contact details, and the reasons you might keep some of it. Most schemes give you a ready-made certificate to send.

If you don't protect it

The tenant can claim through the court, during or after the tenancy, and the court must order you to pay them between 1 and 3 times the deposit. Since 1 May 2026, the court also can't grant you possession under Section 8, except on the antisocial behaviour grounds, until you've protected it late or returned it. See our Section 8 guide.

Deductions at the end

You can deduct for damage beyond fair wear and tear, unpaid rent, cleaning to get the property back to how it was at check-in, and missing items. Adjudicators look for three things:

  1. Evidence: a signed check-in report with dated photos, a check-out report to compare, and invoices or quotes.
  2. Fair wear and tear: normal ageing from everyday use isn't the tenant's cost. Scuffs and faded paint after a long tenancy usually count as wear and tear.
  3. No betterment: you can't charge new for old. If a carpet with a 10-year life is ruined in year 8, the tenant pays for roughly the 2 years of life it had left, not a new carpet.

Disputes

Each scheme offers a free dispute service. Both of you must agree to use it, and the adjudicator's decision is final. You each send evidence, usually within 14 days. Raise a dispute promptly: most schemes set a limit of around 3 months after the tenancy ends, so check yours.

Pets

Tenants can ask to keep a pet, and you must reply in writing within 28 days and can only refuse for a good reason. There's no separate pet deposit: pet damage comes out of the normal deposit, within the same 5-week cap.

Questions landlords ask

How long do I have to protect a tenancy deposit?

30 days from receiving it. You must also give the tenant the prescribed information within the same 30 days.

What is the maximum deposit a landlord can take?

5 weeks' rent if the yearly rent is under £50,000, or 6 weeks' rent if it's £50,000 or more. A holding deposit is capped at 1 week's rent.

How long do I have to return a deposit?

Within 10 days of you and the tenant agreeing how much goes back. If you can't agree, the money stays protected until the scheme's dispute service decides.

Can I charge for a new carpet if the tenant damaged it?

Only for the part of its life that was lost. Adjudicators don't allow new for old, so for an older carpet you'll usually get a share of the replacement cost, not all of it.

What happens if I didn't protect the deposit?

The tenant can claim 1 to 3 times the deposit through the court, and you can't get possession under Section 8 on most grounds until you protect it or return it.

Sources

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