How to avoid a deposit dispute
Find out what steps you can take to avoid disputes and what is a dispute resolution service
Disputes usually arise through misunderstandings, so the best way to avoid a deposit dispute is to be clear and up-front with your tenants right from the start of the tenancy.
When a tenant moves into your property, go through the check-in inventory with them and have them sign to say they agree with the contents, condition and cleanliness of the property as recorded in the document. See our ultimate guide to an inventory and schedule of condition, for more information and advice on when and how to use inventories.
Explain that the property should be handed back at the end of the tenancy in the same condition, and that they will be responsible for the cost of repairing any damage over and above reasonable wear and tear – making sure they understand the difference between ‘damage’ and ‘wear and tear’.
Carry out periodic inspections and if you notice any damage, discuss it with the tenant there and then, giving them the opportunity to make repairs before the end of the tenancy. Read our guide to landlords’ and tenants’ repair responsibilities for more information.
It’s also a good idea to arrange an inspection two to three weeks before the tenant is due to move out, so you can highlight any damage they might have to pay for and remind them about cleaning.
That way, if you need to make deductions from the deposit, it shouldn’t come as a surprise to the tenant. Our ‘End of tenancy cleaning and inventory checklist’ covers the key areas landlords and agents should mention to tenants, to help them return the property in as clean a condition as expected.
And when explaining how much you propose to withhold from their deposit, be specific and have evidence and quotes to hand, so they can see you are being reasonable.
Every TDP scheme provider offers a free, impartial dispute resolution service that will make a decision on a deposit deduction, if negotiation between you and your tenant is unsuccessful.
This benefits both landlords and tenants as it provides an independent, evidence-based assessment of the deposit allocation to make sure there is a fair outcome for both parties. It also helps landlords and tenants avoid costly court fees and reduces the chances of further issues occurring.
While it’s a valuable and effective service, it’s worth knowing that less than three per cent of deposit protections end in dispute.
Working with numerous landlords and agents over the years, it is clear that maintaining a good relationship with your tenants, and having good evidence at hand for discussion about costs at the end of the tenancy proves successful in most cases. Where it is unsuccessful, our free, impartial dispute resolution service does provide peace of mind when things become contentious. Our early resolution process, which is an option for some cases, allows both the landlord and the tenant to settle their differences quickly.
