In England, the Tenant Fees Act 2019 caps the tenancy deposit a landlord or agent can take: 5 weeks’ rent when the yearly rent is under £50,000, and 6 weeks’ rent when it is £50,000 or more. A holding deposit is capped at 1 week’s rent.
Enter the monthly rent to see the maximum deposit, the holding deposit cap and the date the deposit has to be protected by. Scotland is covered too, where the cap is 2 months’ rent.
| Monthly rent | £1,000, so £12,000 a year |
|---|---|
| Weekly rent | £12,000 ÷ 52 = £230.77 |
| Maximum tenancy deposit | 5 weeks × £230.77 = £1,153.85 |
| Maximum holding deposit | 1 week = £230.77 |
| Protect the deposit by | 30 days after receiving it |
Next step
Record each room with dated photos, meter readings and keys, get the tenant’s signature, then compare room by room at check-out.
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Up to 5 weeks’ rent when the yearly rent is under £50,000, and up to 6 weeks’ rent when it is £50,000 or more. Weekly rent is the yearly rent divided by 52.
Up to 1 week’s rent in England. It holds the property while checks are done, and the rules on when it must be returned or can be kept are set out in the Tenant Fees Act.
Within 30 days of receiving it, in one of the government-backed tenancy deposit protection schemes in England and Wales. The landlord also has to give the tenant the prescribed information about the deposit.
In Scotland a deposit can be up to 2 months’ rent, and it has to be paid into an approved tenancy deposit scheme within 30 working days of the tenancy starting.
Education, not advice. Rules change and depend on your circumstances. Check GOV.UK and speak to a qualified adviser before you act.