UK
Tenancy deposit
A tenancy deposit is money the tenant pays at the start of a let as security for the rent and the condition of the property. In England and Wales it has to be protected in an authorised scheme within the legal deadline.
Also called Security deposit, Damage deposit.
The agent’s usual role
Take the amount the agreement allows, protect it or pass it to the party who will, and give the tenant the prescribed information. The scheme, the certificate and the prescribed information are the records that matter if there is a later dispute. An assistant can remind you the certificate is missing. It cannot mark the deposit as protected if it is not.
Caps
England caps most deposits at five weeks’ rent, or six weeks where the annual rent is high enough to meet the threshold in the Tenant Fees Act. Check the current threshold before you quote a number of weeks in a template.
Questions
What does Tenancy deposit mean?
A tenancy deposit is money the tenant pays at the start of a let as security for the rent and the condition of the property. In England and Wales it has to be protected in an authorised scheme within the legal deadline.
General information for agency staff, not legal advice. Rules and local practice change. Check the official source before you rely on a definition in a client letter.