Informed Landlords Glossary: Deposit

A deposit is a sum of money paid by the tenant to the landlord prior to moving into the property. This deposit is held until the end of the term when some or all of it will be used to pay for unfair wear and tear or damage and is usually the equivalent of one months rent.

The deposit must now be placed within a scheme called Tenancy Deposit Scheme. This is either custodial or insurance backed whereby the Landlord tells the tenant in what scheme it is held, how they can obtain access to it and how they can complain if they feel they have been treated unfairly.