How to Protect a Deposit in Wales: Step-by-Step for Landlords

The Two Legal Duties

Under Section 45 of the Renting Homes (Wales) Act 2016, a landlord who receives a security deposit in connection with an occupation contract must do two things within 30 calendar days of the payment date:

1. Register the deposit with one of the three authorised schemes — DPS, MyDeposits, or TDS
2. Serve the required information on the contract-holder and any third party who paid the deposit on their behalf

These are separate obligations. Registering with a scheme but failing to serve the required information still counts as non-compliance, and vice versa.

Step 1: Record the Receipt Date

The moment money arrives — whether by bank transfer, cheque clearance, or cash — note the date. This is Day 1 of the 30-day statutory clock. If an agent receives the deposit on your behalf, their receipt date is your Day 1.

Step 2: Choose a Scheme and Protection Route

All three authorised schemes operate in Wales: DPS (Deposit Protection Service), MyDeposits, and TDS (Tenancy Deposit Scheme). Each offers two protection routes:

Custodial: You transfer the deposit to the scheme, which holds it in a ring-fenced account for the duration of the contract. Free to use. The scheme releases funds at the end of the contract based on the parties' agreement or an adjudicator's decision.

Insured: You keep the deposit in your own bank account and pay the scheme a fee for insurance-backed protection. If a dispute arises, you must transfer the disputed amount to the scheme before adjudication can proceed.

For most self-managing landlords with one or two properties, the custodial route is simpler — the money is held independently, removing the risk of accidentally spending it.

Step 3: Register the Deposit

Log into your chosen scheme's portal, enter the property address, contract-holder details, deposit amount, and contract start date. For custodial protection, transfer the funds to the scheme's designated account. For insured protection, pay the protection fee and confirm the deposit amount held.

Complete this within the first few days. Postal delays or banking processing times eat into the 30-day window.

Step 4: Prepare the Required Information

The Renting Homes (Deposit Schemes) (Required Information) (Wales) Regulations 2022 (S.I. 2022/250) list what the information pack must contain:

• Name, address, phone number, and email of the scheme administrator
• A copy of the scheme's information leaflet
• The specific contract clauses allowing deposit deductions
• The exact deposit amount and the property address
• Contact details for the landlord, all contract-holders (including forwarding contact details after the contract ends), and any third-party payer
• The procedures for deposit repayment at the end of the contract
• The scheme's ADR process for disputes
• A signed landlord declaration certifying accuracy, with an opportunity for the contract-holder to sign

There is no single government-issued form. Use the required information template generated by your scheme, and make sure every field is populated.

Step 5: Serve and Record Delivery

Deliver the completed pack to the contract-holder and any third party who paid the deposit. Acceptable delivery methods include hand delivery with a signed receipt, first-class recorded post, or email with documented consent for electronic service.

Keep proof of delivery. In a County Court challenge over a Section 173 notice, the landlord bears the burden of proving the required information was served within 30 days.

Step 6: File Everything

Store the scheme's protection certificate, your completed required information pack, and your proof of delivery together. You will need these records if you ever need to serve a Section 173 notice, defend a penalty claim, or navigate a deposit dispute at the end of the contract.

The Wales deposit protection guide provides the full compliance workflow with a proof-of-service log and a 30-day countdown checklist.

See more Wales guides →