Protection
Within 30 days of receiving the deposit in England and Wales.
Markets · United Kingdom
Tenancy deposit protection and client money, reconciled on NetSuite
RIOO records every tenancy deposit with its protection scheme, certificate reference, prescribed information date and deadlines, and reconciles deposits held to the NetSuite ledger. For agents handling client money, segregated balances and owner statements reconcile in the same system.
United Kingdom · Deposit protection & client moneyUnited Kingdom
GBP · VAT- DepositProtected in 30 days
- Prescribed infoServed
- Client moneySegregated account
- CMPScheme membership
What are the deposit protection rules in the UK?
In England and Wales, deposits for assured shorthold tenancies must be protected in a government-approved scheme, such as the Deposit Protection Service, mydeposits or the Tenancy Deposit Scheme, within 30 days of receipt, with prescribed information served on the tenant in the same period.
In England and Wales, deposits for assured shorthold tenancies must be protected in a government-approved scheme (the Deposit Protection Service, mydeposits or the Tenancy Deposit Scheme) within 30 days of receipt, and the prescribed information must be given to the tenant within the same period. The Tenant Fees Act caps deposits at five weeks' rent where annual rent is under £50,000, and six weeks' rent above that. In Scotland, deposits must be lodged with an approved scheme within 30 working days. In Northern Ireland, deposits must be protected within 28 days. Failure can lead to penalties and can affect possession claims. Confirmlegal review, and any changes under the Renters' Rights Act
See our guide to ending a tenancy in England: check-out and deposit return.
Use cases
What are the key deadlines?
The key deadlines are protection and prescribed information within 30 days in England and Wales, lodgement within 30 working days in Scotland, protection within 28 days in Northern Ireland, and prompt return after the tenancy ends. In England, deposits are generally capped at five weeks' rent.
Prescribed information
Given to the tenant within the same 30 days.
Scotland
Lodged with an approved scheme within 30 working days.
Northern Ireland
Protected within 28 days.
Return
Agreed amounts returned promptly after the tenancy ends, typically within ten days of agreement.
Deposit cap
In England, generally five weeks' rent where annual rent is under £50,000.
What is client money protection?
Client money is money letting and managing agents hold on behalf of landlords or tenants, such as rent and deposits. Agents in England must belong to a client money protection scheme and keep client money in a designated client account, separate from their own funds, with regular reconciliations.
How it works
How does a deposit flow from move-in to return?
A deposit flows from billing at move-in within the cap, through receipt into a liability account, scheme protection with the reference recorded, and serving prescribed information, to check-out inspection, itemised deductions with evidence, and the final return or scheme adjudication.
- 01
Charge
The deposit is billed at move-in within the cap.
- 02
Receive
Payment is applied to the tenant ledger and posted to the deposit liability account.
- 03
Protect
The deposit is registered with the scheme; the reference is recorded on the tenancy.
- 04
Serve prescribed information
The date is recorded and the document attached.
- 05
Check out
The inspection compares condition with the move-in inventory.
- 06
Propose deductions
Itemised deductions are sent to the tenant with evidence.
- 07
Return or dispute
The agreed amount is returned; disputes go to the scheme's adjudication, and the outcome is recorded.
How it works
How does RIOO track deposits?
RIOO tracks deposits from invoice to refund: the deposit is recorded as a liability on the lease, the scheme, type, reference and date are stored on it, tasks track the 30-day deadline and prescribed information, deductions are itemised at move-out, and the refund clears the liability.
- 01
The deposit is invoiced and received at move-in and recorded as a liability on the lease.
- 02
The scheme, protection type, reference and date are stored on the deposit.
- 03
A task tracks the 30-day deadline and prescribed information.
- 04
At move-out, deductions are itemised and agreed or disputed.
- 05
The refund posts in NetSuite and the liability clears.
How should deposit deductions be handled?
Compare the check-out inspection with the check-in inventory, allow for fair wear and tear, itemise each deduction with evidence such as photos and invoices, and propose the amounts to the tenant. If the tenant disagrees, the scheme's free dispute service decides using the evidence. Clear inventories and photos are the best protection.
In detail
What does RIOO track?
RIOO tracks the deposit amount against the cap, the scheme, type and reference, the protection and prescribed information deadlines, certificates and documents as evidence, the liability balance by property and entity, and the return, deductions and any dispute status at the end of the tenancy.
Deposit amount and cap check
Deposit charged against the weekly-rent cap, with an alert if it exceeds the limit.
Scheme and type
Custodial or insured scheme, provider and certificate or reference number.
Deadlines
Date received, protection deadline, prescribed information served date, with tasks before deadlines.
Evidence
Certificates and prescribed information documents attached to the tenancy.
Ledger
Deposits held in a liability account by property and entity, reconciled to the bank and the scheme.
Return and disputes
Check-out inspection, proposed deductions, agreement or dispute status, and the final return.
Compare
What about client money?
Letting agents in England that hold client money must belong to a government-approved client money protection (CMP) scheme, and similar requirements apply in Scotland and Wales. Client money must be held in designated client accounts and reconciled regularly. RIOO's owner ledgers, segregated bank accounts and NetSuite reconciliation help agents show what is held for whom at any date. ConfirmCMP scheme requirements are met by configuration; legal review
| Control | How RIOO supports it |
|---|---|
| Segregated client accounts | Designated bank accounts in NetSuite |
| Owner and tenant balances | Owner and tenant ledgers by property |
| Regular reconciliation | Bank reconciliation and ledger reports |
| Owner statements | Statements from the same transactions |
| Audit trail | System notes and approvals |
What happens if a deposit is not protected?
In England and Wales, a tenant can claim compensation of one to three times the deposit, and an unprotected deposit can affect the landlord's ability to recover possession. Late protection does not always cure the problem, so protection should be part of the move-in workflow, not a separate task.
Compare
Which deposit protection schemes operate in England and Wales?
Three government-authorised schemes operate in England and Wales: the Deposit Protection Service, mydeposits and the Tenancy Deposit Scheme. Each offers a custodial option, where the scheme holds the money, and insured options, where the landlord or agent holds it and pays an insurance fee. Scotland and Northern Ireland have their own approved schemes.
| Option | Who holds the deposit | Cost | Dispute process |
|---|---|---|---|
| Custodial | The scheme | Usually free | Scheme adjudication |
| Insured | Landlord or agent | Fee per deposit or membership | Scheme adjudication |
Why does NetSuite-native matter for deposits?
Deposits are liabilities, not income, and auditors check them. When each deposit is a transaction on the tenant ledger posting to a liability account, the total held reconciles to the scheme and the bank, and every deduction links to inspection evidence.
Who is most at risk of deposit penalties?
Landlords most at risk of deposit penalties are those with many small portfolios, those who take deposits outside a standard move-in process, such as on renewals or replacement tenancies, and those who change schemes without re-protecting. Consistent tracking on every tenancy closes those gaps.
Landlords with many small portfolios, those who take deposits outside a standard move-in process, such as on renewals or replacement tenancies, and those who change schemes without re-protecting are most at risk. A renewal or a change of tenant on a joint tenancy can require fresh prescribed information. Build these events into the workflow so protection is checked every time a tenancy changes.
Who is RIOO NOT a substitute for?
RIOO is not a substitute for a deposit scheme, scheme registration, adjudication or client money protection membership. It records deposit and client money activity in NetSuite, tracks deadlines and evidence, and reconciles balances, while the schemes and your advisers handle the regulated parts.
What is the difference between a deposit and a holding deposit?
A holding deposit reserves a property while checks are completed and is capped at one week's rent in England. It must be refunded or applied to the first rent or deposit within set deadlines. A tenancy deposit secures the tenant's obligations during the tenancy and must be protected in a scheme.
Checklist
Deposit compliance checklist
- Every deposit protected within the deadline.
- Prescribed information issued and recorded.
- Deposit register reconciled to the liability balance.
- Deposits within the legal cap.
- Disputes tracked to resolution.
Talk to a specialist
See deposit protection & client money on your own portfolio.
For agents handling client money, segregated balances and owner statements reconcile in the same system.
Does RIOO register deposits with the DPS, mydeposits or TDS automatically?
No. RIOO records the scheme, protection type, reference and deadlines for each deposit and attaches the certificate and prescribed information. Direct integration with DPS, mydeposits or TDS systems is not claimed, so registration itself happens through each scheme's own service, and staff then record the reference in RIOO. Confirm
Can RIOO check the five-week deposit cap?
Yes. Deposit charges can be compared with the cap calculated from weekly rent for the tenancy, generally five weeks' rent where annual rent is under £50,000 in England, with an alert when a deposit would exceed the limit set by the Tenant Fees Act. Staff correct the charge before the tenant is billed.
How are deposit deductions recorded?
Deductions are itemised against the tenant ledger with check-out inspection evidence, such as photos, the inventory comparison and contractor invoices, and the agreed balance is returned to the tenant. Disputed amounts are tracked separately until the scheme's adjudication outcome is recorded, then the final return posts in NetSuite.
Does RIOO support Scottish deposit schemes?
Yes. Scottish tenancies can record the approved scheme, deposit reference and the 30-working-day lodgement deadline in the same way as English and Welsh tenancies, with tasks reminding staff before the deadline. Certificates and required tenant information are attached to the tenancy as evidence.
Can letting agents use RIOO for client money?
Yes, with your advisers' input. Letting agents can hold landlord and tenant balances in segregated client accounts and reconcile them in NetSuite, with balances reported by landlord. Confirm your client money protection scheme's requirements, such as reconciliation frequency and account designation, with your provider and advisers. Confirm
Can RIOO register deposits with schemes automatically?
No. Scheme references, protection type and dates are recorded on the deposit in RIOO, but registration uses each scheme's own process and website. Tasks remind staff of the protection and prescribed information deadlines, and the certificate is attached to the tenancy once registration is complete. Confirmscheme integrations
Can holding deposits be tracked?
Yes. Holding deposits, capped at one week's rent in England, are recorded against the applicant with the date received and the agreed deadline. They are then applied to the first rent or tenancy deposit, or refunded within the legal timeframe, and each outcome is recorded with its reason.
How are client accounts reconciled?
Each client account is a NetSuite bank account reconciled monthly against the bank statement, with balances broken down by landlord, so the total held always equals the sum of client balances. Differences are investigated before the reconciliation is signed off, and reports support your client money protection obligations.
Can deposits be returned through the portal?
Deposit refunds are paid through NetSuite to the tenant's bank details, together with a statement of any deductions, rather than through the portal itself. The tenant can see the refund and statement on their account, and the deposit liability clears once payment is made. Confirmrefund method
What if a tenant disputes deductions?
If a tenant disputes deductions, the scheme's dispute resolution service decides using the check-in inventory, check-out report, photos and invoices you provide. Attach that evidence to the move-out record in RIOO as you go, so it is ready to submit and the outcome can be recorded.
Can one tenancy have deposits in more than one scheme?
No. Each tenancy deposit should be protected in a single scheme, with the scheme name, type and reference recorded on the lease in RIOO. If you change schemes, for example at renewal, record the new protection and dates so the deposit stays protected without a gap.
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