The deposit is the landlord's main financial protection against a tenant who leaves the property damaged, dirty, or in arrears. But the deposit cannot be retained arbitrarily — every deduction must be justified, evidenced, and proportionate. Deposit adjudicators see thousands of claims each year and routinely reduce or reject deductions that are unsupported by evidence.
The starting point for any deposit deduction is the check-in inventory. Without a detailed, photographic check-in report signed (ideally) by the tenant, every deduction is contested from a position of weakness — because you cannot prove what condition the property was in at the start.
What landlords can deduct from the deposit
Deductions are permitted for the following categories:
- Damage beyond fair wear and tear: Holes in walls, broken fixtures, smashed tiles, stained or burned carpets (beyond normal ageing), damaged appliances or furniture
- Cleaning: If the property is left in a materially worse state of cleanliness than at the start of the tenancy — the check-in inventory must document the starting standard
- Rent arrears: Any unpaid rent at the end of the tenancy — supported by a rent account statement showing the exact arrears figure
- Unpaid utility bills: If the tenancy agreement makes the tenant responsible and the landlord has paid bills that the tenant was liable for
- Missing items: Furniture, white goods, or fixtures listed in the inventory that are missing at check-out
- Unauthorised alterations: Cost of reinstating the property to its original condition if the tenant made changes without consent (e.g. painted walls a different colour, removed fixtures)
What landlords cannot deduct — fair wear and tear
The fair wear and tear rule is the most important limitation on deposit deductions:
- Fair wear and tear is the gradual, inevitable deterioration of the property from normal, reasonable use — minor scuffs on walls, slight carpet wear in heavy-traffic areas, faded paintwork over a long tenancy
- A landlord cannot charge the tenant for fair wear and tear — only for damage or deterioration that goes beyond what normal use would cause
- Age and condition matter: A carpet that was 5 years old at the start of the tenancy has 2–3 years of useful life left — you can claim the remaining value, not a new carpet
- Pre-existing damage: Any defect documented in the check-in inventory cannot be charged at check-out — only new damage is recoverable
- Landlord's own time: You cannot charge for your own labour — only actual contractor costs with invoices or quotes are acceptable
- Speculative charges: A bare assertion ('cleaning — £200') without an invoice or quote will be rejected by a deposit adjudicator
Evidence requirements — what adjudicators expect
Every deduction must be supported by contemporaneous evidence:
- Check-in inventory: Dated, with room-by-room photographs and written condition notes — signed by the tenant if possible
- Check-out report: A comparable document, ideally carried out on the day of handover or immediately after — photographs alongside the check-in photos show 'before and after'
- Contractor quotes or invoices: At least one quote per deduction — an invoice for completed work is stronger; retain both
- Rent account statement: For arrears — a clear chronological statement showing every payment received and the closing shortfall
- Utility bills: For utility deductions — copies of the bills paid and evidence that the tenant was responsible under the agreement
- Send the deduction schedule to the tenant within 10 days of the tenancy ending — delay suggests the deductions are an afterthought and weakens your position
The deposit adjudication process
If the tenant disputes your proposed deductions, the scheme's adjudication service resolves the dispute:
- All three government-authorised schemes (TDS, DPS, mydeposits) offer free adjudication — the adjudicator reviews written evidence submitted by both parties
- The adjudicator does not inspect the property — their decision is based entirely on the documents and photographs submitted
- Decisions are typically issued within 28 days — both parties are bound by the decision (subject to appeal on a point of law)
- If the adjudicator awards less than claimed, the remainder is returned to the tenant from the protected scheme
- Over-claiming damages your credibility — adjudicators view inflated deductions sceptically and may reduce legitimate claims if the overall schedule appears unreasonable
If the deposit is insufficient to cover your losses
The deposit is capped at 5 weeks' rent — it may not cover all losses. If you have a shortfall:
- Write to the tenant formally requesting payment of the shortfall within a specified period (14 days is reasonable)
- If the tenant does not pay, issue a county court claim for the balance using the online Money Claim service — claims under £10,000 go to the Small Claims Track (no solicitor required)
- Obtain a county court judgment (CCJ) — this can be enforced via a bailiff, an attachment of earnings, or a charging order on property
- Keep all evidence (inventory, invoices, correspondence) — you will need it for the court claim as well as the deposit dispute
Frequently asked questions
Can I deduct for professional cleaning even if the tenant cleaned the property?+
Yes — if the check-in inventory shows the property was professionally cleaned at the start of the tenancy, you can require it to be professionally cleaned at the end, regardless of the tenant's efforts. Include a clause in the tenancy agreement requiring end-of-tenancy professional cleaning if the property was cleaned professionally at the start. The deduction must be evidenced with a cleaning invoice and the property must genuinely require professional cleaning — adjudicators will not award cleaning costs if the property is already clean.
What is the fair wear and tear rule in practice?+
Fair wear and tear is the gradual deterioration from normal, reasonable use — minor carpet wear in high-traffic areas, slight scuffs on walls, faded paintwork after a long tenancy. Damage (holes in walls, burns on carpets, broken fixtures) is not fair wear and tear. Age matters: a carpet that is 7 years old at check-out cannot be charged at full replacement value even if it is stained — an adjudicator will apply a depreciation factor. A carpet that is 1 year old and seriously stained can be charged at a higher proportion of replacement cost.
Can I keep the whole deposit if the tenant owes me more than the deposit amount?+
You can retain the full deposit (up to the scheme's rules) if the evidenced losses exceed the deposit amount. However, keeping more than your evidenced losses is unlawful — the balance must be returned to the tenant. For losses exceeding the deposit, you need to pursue the excess through the county court (Small Claims Track for amounts under £10,000).
What if the tenant moves out without giving proper notice?+
If the tenant abandons the property or leaves without giving the required 2 months' notice, you can include any loss arising from the short notice in your deposit deduction — specifically, the rent for the shortfall in the notice period, up to the deposit amount. This is treated as a breach of the tenancy agreement. Obtain legal advice before making this deduction if the amount is significant, as the calculation of the loss needs to be correct.