deposit protection schemes

Deposit protection schemes are systems that safeguard tenants’ security deposits, ensuring they are safe if the landlord or property manager fails to return them at the end of a tenancy or if the property is damaged. These schemes typically involve a third-party organization that holds the deposit separately from the landlord’s funds. If disputes arise, the scheme can help resolve them fairly. Their goal is to promote transparency, protect tenants’ money, and provide peace of mind when renting a property. Most regions have legal requirements for landlords to place deposits in approved schemes.