Joint Tenant Deposit Scotland: What Happens When a Tenant Leaves

When one tenant leaves a joint Private Residential Tenancy in Scotland, the deposit doesn't automatically split or transfer. The scheme portal needs updating, the prescribed information needs re-serving, and if you handle the transition informally, you create a compliance gap that can cost up to three times the deposit at the tribunal.

The Core Problem

Under the Tenancy Deposit Schemes (Scotland) Regulations 2011, the deposit is lodged against the tenancy, not against individual tenants. When a joint tenant leaves and a new person moves in, the deposit itself doesn't change — but the landlord's Regulation 42 obligations do. The incoming tenant must receive the full prescribed information pack within 30 working days of their entry into the tenancy.

Simply editing the tenant's name on the scheme portal is not enough. Portal changes update the contact details in the scheme's system, but they don't create a legal record that you've met your statutory duties to the new tenant.

Step by Step: Replacing a Joint Tenant

1. Execute a formal assignation agreement. The outgoing tenant, incoming tenant, remaining joint tenants, and the landlord must all sign an agreement transferring the departing tenant's interest in the PRT to the replacement. This is a legal document — not a text message or verbal agreement.

2. Settle the deposit between tenants. The outgoing tenant's share of the deposit is a matter between the tenants themselves (or negotiated via the landlord). The full deposit remains with the scheme. Options include the incoming tenant paying the outgoing tenant directly for their share, or the parties agreeing to adjust amounts owed between themselves. The scheme does not split deposits between outgoing and incoming tenants.

3. Update the scheme portal. Log into your scheme account, remove the outgoing tenant's details, and add the incoming tenant's name, email, and contact number. This updates the scheme's records so the new tenant can access the portal.

4. Serve fresh Regulation 42 prescribed information on the incoming tenant. Within 30 working days of their entry date, provide the full prescribed information pack:

• The deposit amount and the date it was originally received
• The date it was lodged with the scheme
• The property address
• Your landlord registration status
• The scheme administrator's contact details
• The specific tenancy agreement clauses governing deductions
• The official scheme information leaflet

This is a fresh obligation. The fact that the outgoing tenant received this information at the start of the tenancy does not satisfy your duty to the new tenant.

5. Keep proof of service. Get a signed acknowledgment from the incoming tenant, use recorded delivery, or send it by email where the tenancy agreement permits electronic notices. Store this proof alongside your tenancy file.

What About the Remaining Joint Tenants?

You do not need to re-serve prescribed information on the remaining joint tenants who were already living in the property — their original service is still valid. The new obligation arises only for the person entering the tenancy.

However, if the assignation changes any details that were included in the original prescribed information (such as the total deposit amount, if the deposit was topped up to accommodate a rent increase), you should serve an updated notice on all tenants.

The Housing (Scotland) Act 2025 Reforms

From April 2027, the Housing (Scotland) Act 2025 introduces a new statutory process for joint tenant departures. A departing joint tenant will be able to end their liability by serving a mandatory two-month pre-notice to all remaining joint tenants and the landlord, followed by a formal 28-day notice to leave.

This changes the dynamics for landlords. Under the current rules, a joint tenant cannot leave without either the landlord's agreement (through an assignation) or all joint tenants agreeing to end the tenancy. The 2025 reforms give individual joint tenants a unilateral exit route.

From a deposit perspective, the reforms don't change the core obligation: when a joint tenant leaves and a replacement enters, you must update the scheme and re-serve prescribed information within 30 working days.

What Happens If You Don't Update

If the incoming tenant never receives prescribed information and later applies to the First-tier Tribunal, the penalty framework under Regulation 10 applies — up to three times the deposit. The tribunal assesses the penalty based on the full deposit amount, not a theoretical "share" attributable to one tenant.

A £2,000 deposit with a failed prescribed information service to one incoming joint tenant exposes the landlord to a maximum penalty of £6,000 — on top of the deposit itself.

For the full joint-tenancy variation process including evidence templates and a compliance timeline, the Tenancy Deposits in Scotland guide covers every step.

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