A security deposit is a sum of money which a landlord requires a tenant to pay at the start of the tenancy. The money is security, in case the tenant does not meet their obligations in connection throughout the tenancy.
When making an offer you will be offered the choice of using a 'traditional deposit' or a 'deposit replacement scheme (DRS)' for your security deposit.
A traditional security deposit amounts to 5 weeks of rent paid upfront. The Security deposit is 100% refundable, given the tenant(s) adheres to the terms of the agreement – paying rent on time, keeping the home free from damages, etc.
Your deposit will be held in a government backed scheme and then returned to you once an agreed amount of deductions has been settled by both parties. A copy of your deposit certificate can be found in your online PropertyLoop account. which will also confirm the amount of the deposit.
The Deposit Replacement Scheme allows tenants to pay a fee of 1 weeks rent in lieu of a traditional deposit. This reduces initial upfront costs, however this fee is non-refundable and cannot be used to pay for damages. At the end of tenancy, tenants are responsible for any damages, excessive wear and tear, unpaid rent or other unmet obligations from the agreement.