How to Protect a Tenancy Deposit in Northern Ireland

The Operational Steps, in Order

Protecting a tenancy deposit in Northern Ireland is a four-stage process that must be completed within two strict deadlines. Here is exactly what to do, from the moment you receive the money.

Stage 1: Receive the Deposit (Day 1)

The deposit arrives — cash, bank transfer, or cheque. The date you receive the money is the first day of the statutory protection and prescribed-information periods, not the date the tenancy begins.

If the tenant pays in cash, you must issue a written receipt immediately, or as soon as reasonably possible. The receipt must state the payment date, amount paid, purpose, whether the payment is in full, and any amount still outstanding. If one sum covers multiple payments, show how it is allocated and any balance outstanding for each. Charging a fee for the receipt is an offence. Failure to provide one is a summary offence with a fixed penalty of up to £500 or prosecution with a fine up to £2,500.

Before accepting the deposit, verify that it does not exceed one month's rent. If rent is paid weekly, fortnightly, or four-weekly, calculate the monthly equivalent using the statutory conversion formula:

• Weekly: (weekly rent ÷ 7) × 30
• Fortnightly: (fortnightly rent ÷ 14) × 30
• Four-weekly: (four-weekly rent ÷ 28) × 30

Stage 2: Register With an Approved Scheme (Days 1–27)

Choose either TDS NI (tdsnorthernireland.com) or mydeposits NI (mydepositsni.co.uk). Create an account if you do not already have one.

Choose your model:

• Custodial: You will transfer the deposit money to the scheme. Free
• Insurance-backed: You keep the money and pay a protection fee

Log into the scheme portal and enter:

• The property address
• The monthly rent
• The deposit amount
• Tenant details (full name, contact information)
• Third-party payer details (if a guarantor, parent, or charity paid the deposit)

For the custodial model, transfer the funds to the scheme via bank transfer or debit card. For the insurance-backed model, pay the protection fee.

Stage 3: Obtain the Deposit Protection Certificate (By Day 28)

The scheme confirms the deposit is protected and issues a Deposit Protection Certificate with a unique reference number. This document is your proof that you met the 28-day deadline.

Save a copy. You will need the reference number for the prescribed information form, and for any future disputes or council inquiries.

If you initiated the process but the scheme has not confirmed protection by Day 28 — for example, the bank transfer has not cleared — you are not yet protected. Contact the scheme urgently. The clock does not pause.

Stage 4: Serve Prescribed Information (By Day 35)

Complete the prescribed information form with every item required under Schedule 1 of the 2012 Regulations: property details, deposit amount, scheme contact details, landlord contact details, tenant and third-party details, deduction terms, and dispute resolution instructions.

Attach the scheme's official explanatory leaflet (download the current version from the scheme portal — do not reuse an old one).

Serve the documents on the tenant and any relevant third-party payer. Get signed, dated proof of delivery. A tenant's signature on your copy of the prescribed information, confirming receipt on a specific date, is the strongest evidence you can hold.

What "Protected" Actually Means

Creating a scheme account does not protect the deposit. Starting a registration does not protect the deposit. The deposit is legally protected when the scheme confirms it:

• Custodial: funds received and confirmed by the scheme
• Insured: fee paid and Deposit Protection Certificate issued

Until that confirmation exists, you are not compliant.

Common Mistakes

Using the tenancy start date as the deadline start: The statutory period starts on the deposit receipt date, which may be days or weeks before the tenancy begins.

Paying in instalments without tracking each one: Each instalment has its own 28-day clock. The first £400 received on 1 March must be protected by 28 March, even if the second £400 does not arrive until 15 March.

Using the wrong conversion formula: Four weeks' rent is not one month's rent. For non-monthly rent, the statutory cap is the rent attributable to one day's letting multiplied by 30. Using four weeks instead understates the cap and may lead to miscalculating whether a deposit exceeds the limit.

Serving outdated prescribed information: Scheme terms change. Serving a leaflet from a previous tenancy or an older version of the form undermines your compliance record.

For a complete walkthrough with the conversion worksheets, delivery logs, and form templates, see our Northern Ireland Tenancy Deposits guide.

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