Your contract will often not make this clear so it is very important you understand the difference between the two.
Your landlord or Agent will keep the deposit during your tenancy
They will take out an insurance based policy, for a fee, with one of the 3 protection scheme providers
The Landlord or Agent is charged by any of the 3 scheme providers to protect this way
Regardless of which type of scheme your landlord or agent chooses they have to provide you with Prescribed Information regarding the scheme provider and its procedures within 30 of receiving your deposit
Insured schemes only give you 3 months in which to raise a dispute about deposit deductions from when you vacate the tenancy/the tenancy ends
The landlord or Agent will send the money to the scheme
The custodial scheme is completely free to landlords or agents regardless of which scheme they use
The Landlord or Agent is NOT charged by any of the 3 scheme providers to protect this way
Custodial schemes are not time sensitive and you can raise a dispute at any point but be careful your landlord or agent doesn’t attempt to reclaim it without your knowledge
Have a look at our web pages for more in-depth information or
Seek help for the Student Advice Centre
Email: email@example.com or Telephone: 0191 2393979
What does a landlord/agent have to do?
This information must be signed by the landlord or agent that you paid your deposit to
All 3 three offer 2 types of scheme: