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Deposit Deductions - What landlords need to know

Landlords have a bad rap when it comes to deposits, with many tenants feeling that they are on the receiving end of unfair deductions. Thankfully, services such as the Tenancy Deposit Scheme (TDS) and Deposit Protection Service (DPS) have reduced the controversy around returning deposits. There’s a formal dispute resolution process that both landlords and tenants can apply to if there are disagreements. However, as a landlord, it’s still worth knowing what you can and can’t make deductions for:

Reasonable deposit deductions:

Your property should be returned to you in the condition that it was found in (excluding fair wear and tear), and your expectations should have been set out in your original tenancy agreement.

For example, if the property was handed over after being professionally cleaned, it is reasonable that it’s cleaned to the same standard on the way out.

Reasonable deductions can also be made for the following:

  • Unpaid rent or bills
  •  Damage caused by tenants
  • Missing items (in the case of furnished properties)
  • Gardening

Fair wear and tear:

The area that always causes trouble when it comes to returning deposits!

This is anything that could be caused by everyday living. For example, scuff marks on the walls can occur quite easily and would fall into the category of ‘fair wear and tear’.

However, a dent in the wall or broken window could be seen as beyond the usual level of wear and tear and therefore be deductible.

It’s also important to be fair. So, if one kitchen cupboard has been broken, it wouldn’t be fair to reduce the deposit by the cost of replacing an entire kitchen!

Our lettings team at VA are always here to help if you’re looking for new tenants or need renovations to your property.

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