Returning the deposit
Returning the deposit entails giving back the initial security deposit, deducting any applicable costs for damages or unpaid rent post-lease
It’s important to note that it is up to the deposit protection scheme provider to decide what can be deducted from the deposit. That means you should never agree to the deposit being used in lieu of the tenant’s last month’s rent – they must make their final rental payment as usual.
Not only are deductions in the hands of the scheme provider, but there may be damage that costs more to repair than the balance of the deposit after rent, so it’s in your own interest to have the full deposit funds available in case you need to make a claim.
Once the tenant has left and any deductions have been agreed, both parties must confirm to the scheme how much of the deposit should be returned to the tenant within 10 days.
In the case of mydeposits, the funds will then be released to the tenant within one to two days.
If you want to make deductions and the tenant disagrees, you will have to provide the scheme with evidence to support your claim.
The adjudicator will investigate and make their decision, which is final.
You and/or your tenant should then receive the money within five days.
For full information, see our ultimate guide to tenancy deposit protection legislation.
