"If you take a deposit from a tenant for an Assured Shorthold Tenancy agreement, you should protect this with one of three Government authorised tenancy deposit schemes.

If you don't want to d this, there are some alternatives, including taking out a guarantee and purchasing insurance cover instead.

"Most of the alternatives, with the exception of the local authority guarantee bond, do not give you as much protection as a deposit.

"The insurance cover, although good when it is available, will only be available when the tenants have been satisfactorily referenced. It's generally agreed that tenants take more care of your property when a deposit is at stake. In most case, landlords are best advised to continue to take a deposit"