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Commercial Rent Deposits: Are They Protected?

Commercial deposits aren't covered by the residential schemes.

Commercial Rent Deposits: Are They Protected? Commercial Property & Office Space

Updated October 2026 · Fraser Bond

Commercial · Deposits

Commercial rent deposits

Nostatutory scheme
Rent depositdeed
Separateaccount
Insolvencyrisk
In short: Unlike residential tenancy deposits, commercial rent deposits aren't protected by a government scheme. Their safety depends on the rent deposit deed, which should require the landlord to hold the money in a separate, ideally interest-bearing, account, set out when it can be drawn on and when it must be returned, and what happens if the landlord sells. Holding it on trust or as a charge in the tenant's favour can give protection if the landlord becomes insolvent. Have a solicitor review the deed.

Frequently asked questions

Is my commercial deposit protected?

Only by the terms of the deed.

How much is usual?

Often three to six months' rent.

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