Most of our customers use our free Custodial service. In this scheme, we hold the tenant’s deposit throughout the period of the tenancy, and administer the repayment when they leave.
Our Insured scheme is a little different – you retain the tenant’s deposit for the duration of the tenancy and pay us a small fee to protect it. You also manage the deposit repayment at the end of the tenancy.
Did you know the tenancy deposit cap came into effect on 1 June?
For English tenancies, The Tenant Fees Act came into force on 1 June 2019. This makes it illegal for landlords and letting agents to charge certain fees in connection with a tenancy. A key part of the new legislation is that tenancy security deposits will now be capped at the equivalent of 5-weeks' rent for assured-shorthold tenancies with an annual rent of up to £50,000, or 6-weeks' rent for tenancies with an annual rent of £50,000 or more.
These changes will apply to ALL new tenancies entered into from 1 June 2019, and any existing tenancies that are renewed on a fixed-term basis. It doesn't affect any tenancies signed before 1 June 2019 (irrespective of when the tenant actually moves into the property), although the change will apply to any future fixed-term renewals.
> You're not required to re-serve Prescribed Information
> There are no special provisions or exemptions if the tenant has a pet. The maximum deposit amount allowed must still fall within the compliance thresholds above.
In order for you to check if your custodial deposits exceed the deposit cap, we've created our Deposit Cap Calculator. Landlords and letting agents can use it to calculate how much they need to reduce their deposits by (if at all) and we'll take care of any changes that need to be made. If you have deposits for several tenancies you want to bring into line with the deposit cap, you can do this in one go, regardless of when the tenancies are due to be renewed. Simply download the Deposit Cap Calculator, follow the process below and when you're ready, send it to us. We'll do the rest!
How do I protect a deposit in your Custodial scheme?
To protect a deposit in our custodial scheme, you’ll need to have created your DPS account first. To find out how to do this, go to our page on creating your account. Once you’ve created your account, it’s a simple process that takes only three steps:
1. Add a property
The first step is to add the property to your account. You can add a property to your account at any time, even if it’s not currently let, so it’s there when you're ready to protect a deposit.
2. Create the tenancy
Step two is to create the tenancy for the property you’ve added. You'll need to provide:
› Full names of your tenants
› An email address or a mobile number for every tenant on the tenancy
› Rent amount
› Tenancy start date
› Tenancy duration
› Deposit amount
3. Pay the deposit
To complete the process of protecting the deposit, you need to pay the money to us. Bank transfer is the quickest and easiest way to protect a deposit and allows us to automatically allocate payments to deposits for you.
If you can’t use bank transfer to pay the deposit, our customer service team can tell you about the alternatives. We’ll tell you what information you need from you during the process.
Do you have several deposits to protect?
When you're letting several properties every week, the administration of deposit protection can easily become a time consuming task. We know your time is valuable, so we've created a tool allowing you to add multiple properties and create multiple tenancies in one go. Follow these simple steps to speed up your deposit protection adminstration.
1. Download our Multiple Tenancy Upload tool.
2. Add each new tenancy to the spreadsheet, one row per tenancy.
3. Send your completed spreadsheet to Bulkuploads@depositprotection.com.
4. We'll send you confirmation the tenancies have been created, the value of the tenancy deposits and their payment reference. Use this payment reference when making your bank transfer to allow us to automatically allocate the money to the relevant deposits.
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