Every deposit held under an Assured Shorthold Tenancy — now automatically converted to a Periodic Assured Tenancy under the Renters' Rights Act 2025 — must be registered with an approved tenancy deposit protection scheme: Deposit Protection Service (DPS), MyDeposits, or Tenancy Deposit Scheme (TDS). At the end of the tenancy, landlords have a right to make fair and evidenced deductions from the deposit before returning the balance to the tenant.
The deposit is the tenant's money held as security. Deductions must be reasonable, proportionate, and supported by evidence. Landlords who cannot evidence their claims through check-in/check-out reports, photographs, receipts, and invoices routinely lose deposit disputes — even where the damage is genuine.
Deductions landlords CAN make
The following are legitimate grounds for a deposit deduction, provided the landlord has evidence:
- Damage beyond fair wear and tear — holes in walls, broken fixtures, cracked tiles, burns on surfaces, stains that cannot be cleaned
- Professional cleaning — where the property was returned in a dirtier condition than at the start of the tenancy (evidenced by check-in report and check-out report)
- Unpaid rent — rent arrears owed at the end of the tenancy
- Missing or broken furniture/items — items listed in the inventory that are absent or irreparably damaged at check-out
- Unauthorised alterations — decoration changes, fittings added or removed without permission
- Gardening — where the garden was maintained at check-in and left neglected at check-out
- Outstanding utility bills — where the landlord is liable to the utility company and bills remain in arrears at the end of the tenancy (rare — confirm this is in the tenancy agreement)
Deductions landlords CANNOT make
The following are not valid grounds for deduction:
- Fair wear and tear — scuffs on walls, faded curtains, worn carpets in high-traffic areas, minor marks from normal use. This is the tenant's legal right.
- Pre-existing damage — anything that was already damaged at check-in and recorded in the inventory
- Repainting due to age — walls and paintwork have a lifespan. Repainting after a 5-year tenancy is maintenance, not a tenant cost.
- Improvements — you cannot charge a tenant for betterment. If a 10-year-old carpet is replaced with a new one after 1 year of tenancy, you can recover only the proportion attributable to the tenant's damage.
- Unsubstantiated costs — quotes and invoices must relate to actual or planned remedial work. Speculative or inflated estimates are rejected in adjudication.
The 'fair wear and tear' rule explained
Fair wear and tear is the legal recognition that property deteriorates through normal daily use. The longer a tenancy, the more wear and tear the tenant is entitled to cause without liability. Adjudicators apply an age/condition formula:
- A carpet that was new at the start of a 5-year tenancy has a remaining value calculated on its estimated lifespan (typically 10 years). The tenant is only liable for damage beyond what that 5-year use would reasonably produce.
- Faded or slightly marked walls at the end of a long tenancy are fair wear and tear — especially in high-traffic areas like hallways.
- Heavy carpet staining from a spill is damage, not wear and tear — regardless of tenancy length.
- The condition at check-in matters: a property let with tired décor cannot be returned in showroom condition — the tenant's obligation is to return it in the same condition (minus fair wear and tear).
The deposit protection scheme dispute process
If you and the tenant cannot agree on deductions, the dispute goes to the free Alternative Dispute Resolution (ADR) service provided by the approved scheme. The process is:
- Either party raises a dispute with the deposit scheme within the scheme's timeframe (usually 90–120 days after tenancy end or from when the deposit return is disputed)
- Both parties submit evidence — check-in report, check-out report, photographs, invoices, communications
- An independent adjudicator reviews the evidence and issues a binding decision
- The decision is final — neither party can appeal to court simply because they disagree with it (though judicial review is available in exceptional cases)
- Most adjudicators will not award deductions where the landlord's evidence is limited to photographs without a check-in comparator or professional assessment
How to maximise recovery: the evidence requirement
Landlords who win deposit disputes consistently follow this evidence protocol:
- Check-in inventory: detailed, room-by-room condition report with photographs. Tenant signs to confirm accuracy.
- Mid-tenancy inspection: documented inspection (with 24+ hours' notice) with photographs — this shows any damage was caused by the tenant, not pre-existing.
- Check-out report: room-by-room condition report with photographs, ideally conducted jointly with the tenant.
- Invoices and receipts: from cleaning companies, tradespeople, or suppliers for any remedial work — with dates that confirm the work was done after the tenancy ended.
- Like-for-like costings: adjudicators reject inflated costings. A fair quote from a local tradesperson is more compelling than a premium contractor invoice.
Deposit return timescales
Once the tenancy has ended and an agreement is reached (or a dispute raised), the landlord must return the undisputed portion of the deposit promptly. The scheme rules set strict timescales:
- The undisputed portion must be returned promptly — most schemes specify within 10 days of agreement
- If the landlord fails to protect the deposit initially, they cannot make deductions and face a penalty of 1–3× the deposit
- If a court awards the tenant a penalty for non-protection, the landlord still has no right to retain the deposit
Frequently asked questions
Can a landlord deduct for cleaning if the tenant cleaned the property?+
Only if the property was returned in a dirtier condition than at the start of the tenancy. The landlord must compare the check-out condition with the check-in condition — if the property was dirty at check-in and the tenant returned it in the same condition, no cleaning deduction is valid. Adjudicators require a check-in report and check-out report to assess cleaning claims.
Can a landlord charge for repainting at the end of a tenancy?+
Only where the decoration has been damaged beyond fair wear and tear — for example, scuffs, marks, or staining that would not be expected from normal use. Repainting simply because the paint has aged over a long tenancy is maintenance, not a deduction. Adjudicators will apply an estimated lifespan to paintwork and reduce any award proportionately.
What is the maximum a landlord can deduct from a deposit?+
There is no statutory cap on deposit deductions — a landlord can deduct the full deposit if the legitimate claims exceed it. However, deductions are capped by the deposit amount itself. If the landlord's losses exceed the deposit, they would need to pursue the tenant through the small claims court for the balance.
How long does a landlord have to return a deposit?+
Once agreed or following an adjudication decision, the undisputed portion must be returned promptly — most deposit schemes require return within 10 days of agreement. If you cannot agree, raise a formal dispute with the scheme before the scheme's dispute window closes (typically 90–120 days after tenancy end).
Can a landlord deduct for unpaid rent from the deposit?+
Yes. Unpaid rent is a legitimate deposit deduction. The landlord must be able to evidence the arrears — typically with a rent account statement showing payments received and the balance outstanding. Where the deposit is insufficient to cover the full arrears, the landlord can pursue the balance in the small claims court.