A tenancy deposit scheme is an independent third party scheme which has been approved by the Scottish Government to hold and protect tenant's deposits until they need to be repaid at the end of the tenancy.
Under the Tenancy Deposit Schemes (Scotland) Regulations 2011 you are required to submit any tenancy deposit you receive into one of the three approved schemes.
The Scottish Government oversee the Tenancy Deposit Scheme, we do not have any input into the schemes and are not able to show preference to any particular scheme. For further information please see the Scottish Government website.
A tenancy deposit is a sum of money which you may ask a tenant to pay at the start of a tenancy, and which must not amount to more than two months’ rent.
The money is held as security against the tenant not meeting their obligations in connection with the tenancy or occupancy arrangement.
The tenancy agreement should set out the circumstances in which the deposit may be withheld at the end of the tenancy. For example, you may decide to keep some or all of a deposit if it is needed to pay for:
- damage you have caused to the property
- cleaning bills if the property has been left in poor condition
- bills that are left unpaid, for example fuel or telephone bills
- any unpaid rent