What is Insurance?

Our insurance scheme means you paid to join mydeposits
and also pay a protection fee that lets you hold the deposit
in your bank account.

If this is how you protect deposits login here

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What is Custodial?

Our custodial scheme means that you joined mydeposits
for free and transfer the deposit money to us to hold.

If this is how you protect your deposits, then use:

Landlord login or Business login

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Landlord FAQs about deposit protection

Questions and answers to your questions about deposit protection, the scheme and how to comply.

What is tenancy deposit protection?

The Tenancy deposit protection law was introduced on 6 April 2007 to ensure that tenants are able to recover their deposit from their landlord or letting agent at the end of the tenancy, less any amount that the landlord/agent is entitled to withhold.

The legislation covers all deposits taken on Assured Short-hold Tenancies (AST’s) in England and Wales.

All deposits taken after 6 April 2007 on an AST must now be protected by one of the government-authorised deposit protection schemes.

What are the different types of tenancy deposit protection schemes?

There are two types of Tenancy Deposit Scheme; Custodial and Insurance.

 

mydeposits offers both types of service and is a membership scheme. Landlords should join their chosen scheme and then protect deposits.

 

Insurance deposit protection

The mydeposits landlord member keeps the deposit money in their segregated bank account for the duration of the tenancy. A deposit protection fee is paid to mydeposits to legally protect the deposit.

Should a tenant raise a dispute with the scheme, the disputed deposit money must be lodged with the scheme.

 

Custodial deposit protection

The mydeposits landlord member must lodge the deposit with mydeposits for the duration of the tenancy. Both member and tenant must authorise the deposit release before mydeposits returns the deposit.

 

Both our insurance and custodial schemes offer a free Alternative Dispute Resolution service if the member and tenant cannot agree on the amount of deposit to be returned.

Who is mydeposits?

  • mydeposits provides both insurance and custodial based tenancy deposit protection in England & Wales.
  • In April 2007 the Government appointed mydeposits to operate an insurance-based scheme and in April 2016, mydeposits custodial scheme.
  • mydeposits is jointly owned by the Hamilton Fraser Insurance (HFIS plc) and the National Landlords Association (NLA).

How do mydeposits protect deposits?

mydeposits will help you comply with the law, quickly and easily.

  • Provide you with the facilities to protect each deposit you take from your tenant in your online member account, by phone or post.
  • Provide you with the majority of the Prescribed Information to pass onto your tenant.

At the end of the tenancy you are free to negotiate the return of the deposit (and propose necessary deductions) with your tenant.

What are the penalties for not protecting deposits?

  • The Landlord will be unable to regain possession of the property by notice-only grounds for possession under Section 21 of the Housing Act 1988
  • The Tenant can apply for a Court Order requiring the deposit to be protected, and for the Prescribed Information to be given to him/her
  • If the Court is satisfied that the Landlord has failed to comply, the court must either:
    • Order the Landlord to repay the deposit to the Tenant within 14 days of the issuing of the Court Order, or
    • Order the Landlord to pay the deposit into the designated account held by the Custodial Scheme Administrator
  • The Court may also order the Landlord to pay the Tenant an amount equivalent to three times the deposit amount within 14 days of the making of the Order
  • The Court is likely to also award costs against the Landlord

Why do you not accept a correspondence address that is a PO Box or C/O address?

If you breach any terms of your membership, we are required to formally contact you.

What is the difference between a Private Landlord and a Company Landlord?

A Private Landlord is a landlord that owns property in their individual name, e.g. Mr Michael Smith.

A Company Landlord is one that owns the property in the name of a company, e.g. Michael Smith Properties Limited. We consider a Company to be any legal entity such as a Public or Private Limited Company, Partnership or Limited Liability Partnership.

Your Membership name must reflect the name of the landlord stated on any AST agreement you have with your tenant(s). If it does not then any protections may be invalid.

If you wish to protect deposits taken on properties both in your own name and a company name, you need to set up separate memberships.

I use a Letting Agent to hold deposits taken on my properties. Am I still responsible for the protection of the deposit?

  • Ultimately yes. the landlord is always legally responsible for the deposit, its protection and its return to the tenant at the end of the tenancy, (provided they are entitled to it).The landlord will still remain accountable and therefore we strongly advise you to ensure that the letting agency has correctly protected the money with a government authorised scheme.

How do I protect a deposit?

  1. There are 2 ways to protect your tenant’s deposit with mydeposits. You can choose our free to use custodial scheme or pay as you insurance scheme. You must join mydeposits as landlord member, and choose which scheme to protect the deposit:Insurance deposit protectionThe mydeposits landlord member keeps the deposit money in their segregated bank account for the duration of the tenancy. A deposit protection fee is paid to mydeposits to legally protect the deposit.Should a tenant raise a dispute with the scheme, the disputed deposit money must be lodged with the scheme.Custodial deposit protectionThe mydeposits landlord member must lodge the deposit with mydeposits for the duration of the tenancy. Both member and tenant must authorise the deposit release before mydeposits returns the deposit.

What is the Membership joining fee to join mydeposits?

  1. It is free to join our insurance based scheme, which lets you keep the deposit in your own bank account. You pay individual deposit protection fees to protect each deposit legally.
  2. There is no fee to join our custodial scheme. It is completely free to join and protect deposits. No fees are ever charged. 

What does it cost to protect a deposit?

  1. The mydeposits custodial scheme is completely free to join and protect deposits.With our insurance based scheme, you can keep hold of the deposit in your bank account, a deposit protection fee is payable for each deposit you take and legally protects it for the duration of the tenancy agreement. If you renew, extend, amend or reissue the AST Agreement (by whatever means) you will need to purchase a further deposit protection from us.The only exception to this rule is if you allow the original AST Agreement to run into a Statutory Periodic Tenancy (SPT), then no further protection fee is payable, however you must inform us of the extension. An SPT enables both you and the tenant to continue on the original terms and conditions (with the exception of rent revisions) of the letting where no new tenancy agreement or amendment is issued.A deposit under £500 is £20 to protect, with deposits over £500 just £26 per protection. Discounts available to NLA members.

When should I protect the tenant’s deposit?

  1. The deposit  must be protected within 30 days of receipt from the tenant.

What happens if I take the deposits in instalments?

  1. If the deposit is paid in instalments then you must protect the full envisaged amount from the date you receive the first payment. If the tenant does not pay the full amount, then you need to notify us of this and keep evidence, otherwise the tenant may be able to raise a dispute for the full protected amount.

What is the Prescribed Information?

  1. The Prescribed Information Order set outs the deposit protection information which must be provided to the tenant by the landlord/business within 30 days of the deposit being received.mydeposits assists members with the provision of the prescribed information in the following ways:
    1. Proof of protection – You will receive a template or certificate when you have successfully protected your tenant’s deposit with us. You must sign this document.
    2. Mydeposits Information for Tenants’ Leaflet – This leaflet must be passed to the tenant in conjunction with the proof of protection. It explains how mydeposits works, getting the deposit back and our contact details.

    You must provide information about deductions you can make from the deposit with reference to the relevant term in your Tenancy Agreement. A way of doing this is to simply cut and paste the deposit clause and put it in a separate document.

Can I make changes to the prescribed information template during the tenancy?

  1. Deposit protection is not assignable so if you change any details regarding the tenant, property or tenancy agreement dates (apart from spelling mistakes or administrative errors) you may have to re-protect the deposit and pay another protection fee.Any mid-term amendments to the can only be made by mydeposits, please get in touch with our team.

Why do you need an alternative address for my tenant?

  1. We are required by law to inform your tenant that you have unprotected their deposit at the end of the tenancy. If we hold an email address for the tenant then we will inform them on the unprotection via email, otherwise we will need to write to them, to the alternative address supplied.
  2. An alternative address could be that of:
    • Parent
    • Guardian
    • Relative
    • Close Friend
    • Employer
    • Bank
    • Solicitor
    • University
    • College

Does the deposit need protecting if a parent or third party pays it on behalf of the tenant?

  1. Yes. Any deposit you take on behalf of any party needs to be protected and you’ll be asked to provide the name and details when protecting the deposit with us. The names of all persons/parties who contribute to the deposit are known as an “interested third party’ and should appear on the prescribed information.

What is a ‘Relevant Person’?

  1. The Housing Act 2004 provides a definition of “Relevant Person”:“Any person who, in accordance with arrangements made with the tenant, paid the Deposit on behalf of the Tenant”.The name of the Relevant Person must be stated on the Deposit Protection Certificate. They are entitled to raise a dispute on behalf of the tenant and we are entitled to award any disputed amount of the deposit to the Relevant Person. Examples include a Local Authority, parent, guardian, friend etc.

How does mydeposits protect deposits to tenants on Housing Benefit?

  1. The Local Authority, who pays the deposit on behalf of a tenant, is the “Relevant Person”. The Local Authority may raise a dispute on behalf of the tenant if there are problems at the end of tenancy. The tenant must be up to date with all rental payments before we will accept or consider the dispute.

What happens if I take the deposits in instalments?

  1. If the deposit is paid in instalments then the full amount of the deposit as stated in the AST must be protected eventually.

What is the Prescribed Information?

  1. The Prescribed Information Order set outs the deposit protection information which must be provided to the tenant by the landlord/business within 30 days of the deposit being received.mydeposits assists members with the provision of the prescribed information in the following ways:
    1. Proof of protection – You will receive a template or certificate when you have successfully protected your tenant’s deposit with us. You must sign this document.
    2. Mydeposits Information for Tenants’ Leaflet – This leaflet must be passed to the tenant in conjunction with the proof of protection. It explains how mydeposits works, getting the deposit back and our contact details.

    You must provide information about deductions you can make from the deposit with reference to the relevant term in your Tenancy Agreement. A way of doing this is to simply cut and paste the deposit clause and put it in a separate document.

Can I make changes to the prescribed information template during the tenancy?

  1. Deposit protection is not assignable so if you change any details regarding the tenant, property or tenancy agreement dates (apart from spelling mistakes or administrative errors) you may have to re-protect the deposit and pay another protection fee.Any mid-term amendments to the can only be made by mydeposits, please get in touch with our team.

Why do you need an alternative address for my tenant?

  1. We are required by law to inform your tenant that you have unprotected their deposit at the end of the tenancy. An alternative address could be that of:
    • Parent
    • Guardian
    • Relative
    • Close Friend
    • Employer
    • Bank
    • Solicitor
    • University
    • College

Does the deposit need protecting if a parent or third party pays it on behalf of the tenant?

  1. Yes. Any deposit you take on behalf of any party needs to be protected and you’ll be asked to provide the name and details when protecting the deposit with us. The names of all persons/parties who contribute to the deposit are known as ‘relevant party’ and should appear on the prescribed information.

What is a ‘Relevant Person’?

  1. The Housing Act 2004 provides a definition of “Relevant Person”:“Any person who, in accordance with arrangements made with the tenant, paid the Deposit on behalf of the Tenant”.The name of the Relevant Person must be stated on the Deposit Protection Certificate. They are entitled to raise a dispute on behalf of the tenant and we are entitled to award any disputed amount of the deposit to the Relevant Person. Examples include a Local Authority, parent, guardian, friend etc.

How does mydeposits protect deposits for agents who rent to tenants on Housing Benefit?

  1. The Local Authority, who pays the deposit on behalf of a tenant, is the “Relevant Person”. The Local Authority may raise a dispute on behalf of the tenant if there are problems at the end of tenancy. The tenant must be up to date with all rental payments before we will accept or consider the dispute.

If more than one Relevant Person has paid all or part of the tenant’s deposit how do I record the names on the Certificate?

  1. When protecting the deposit, you should state the name of all the Relevant Person who paid the part of all of the deposit.

I have forgotten my password to log into my online account, what do I do?

  1. Go into Member log in, select your custodial or insurance scheme and click on “forgot password”.
    The password you used originally to access your account will be emailed to the email address noted on your account. Or you can contact our call centre.

Power of Attorney (POA) and mydeposits

  1. We receive a wide range of requests from third parties to deal with matters on behalf of our members or tenants. These range from those representing landlords who are temporarily living aboard, to those with elderly or young relatives and people who are unwell. We always require authorisation in writing (not email) from a person who wants a third party to act on their behalf.If we cannot obtain such authorisation we will accept a person if they have been appointed as an attorney under a POA.There are three main types of Power of Attorney:
    1. General Power of Attorney under s.10 of the Power of Attorney Act 1971

    A person can give someone a general power of attorney to legally act for them using a prescribed form. This form can be found at Schedule 1 of the Power of Attorney Act 1971 and is relatively straightforward to complete.

    mydeposits may ask for the reasons why the POA was granted, and we may ask for further evidence or even to speak to person who has granted the power.

    1. Enduring Power of Attorney (EPA)

    An EPA is a legal document which must have been entered into before 30th September 2007. It deals with either property and financial affairs or personal welfare. If a property and affairs EPA has been properly registered with the Office of the Public Guardian then mydeposits will accept the attorney, although we may need to check for any restrictions on the attorney.

    1. Lasting Power of Attorney (LPA)

    An LPA is the most recent form of legal power of attorney and is more complex/lengthy than the EPA. It requires a qualified person (doctor/solicitor) or a long standing friend to confirm that the person requires an attorney. Again there are financial and property or personal welfare LPAs. The LPA must be registered with the Office of the Public Guardian and we may check for any restrictions on the attorney.

    When the EPA or LPA has been registered with the Office of the Public Guardian it will have the words registered stamped on every page. We may request a copy certified by a solicitor if the attorney is unable to provide mydeposits with the original.

I wish to make a complaint, how can I do so?

  1. Our aim is to provide a first class service to all Members and Tenants and to do everything we can to ensure you are satisfied. If you feel that we have fallen short of this standard and you wish to complain, you should do so in writing to:my|deposits
    Premiere House
    1st Floor
    Elstree Way
    Borehamwood
    Hertfordshire
    WD61JH

    Or by email to: 
    complaints@mydeposits.co.uk 

You can also download our complaints forms which you can complete and return to us at complaints@mydeposits.co.uk

If your issue or concern service you have received, click here or if the matter is based on an adjudication decision that you are not happy with,  click here.

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