Most of the time, deposit deductions run totally smoothly at the end of a tenancy. But, truth be told, on the odd occasion, landlords and tenants do disagree about how it should be divided.

If you’re in that boat, here’s everything you need to know to resolve a deposit deadlock and make your claim the right way.

Before you contact your tenant to open the discussion about holding back some or all of the deposit, get some evidence together and do a bit of maths.

Use the inventory check in and check out and compare them with quotations for remedial works to establish how much you want to deduct from the deposit. Then lay it all out on the table when you speak to your tenant.

If the tenant accepts your point of view and gives you the thumbs up to withhold some of the deposit, great.

How to make a deposit deduction

If you and your tenant are agreed on the deposit deductions, everything can be tied up quickly and quietly through your deposit protection provider.

You’ll make a claim against the existing deposit with the provider, listing any deductions thoroughly and clearly. That will send an automated email to the tenants for their agreement, and you can all move on, happy as Larry.

But if the tenant disputes the amount via your deposit platform, you’ll need to go through the dispute process. (This should get automatically escalated on your provider’s platform.)

How does the dispute process work?

Using a Dispute Resolution Service is pretty straightforward and very fair, but you will need to get your tenant to agree to use it. (If you need any help at any time, please do give us a call.) Here’s how the process goes:

1. You start the case on your provider’s website and submit evidence to support your claim (and your tenant does the same).
2. The provider passes all the evidence to an independent, impartial adjudicator.
3. They review everything you’ve submitted and make the big deposit division decision.
4. You and your tenants receive the adjudicator’s decision directly from your provider.

How long does it take to resolve a deposit dispute?

Both you and your tenant will have 14 days to submit your evidence, from the start of the adjudication process. The adjudicator then gets a further 28 days to give you a decision.

So you’re looking at a maximum of 6 weeks from start to finish, though disputes are (thankfully) often cleared up more quickly than that.

How can you make your claim as strong as possible?

The DPS don’t ask for specific items of evidence, so it’s your responsibility to make sure you send everything that’s relevant to your claim. Make sure you include the following:

• Signed inventory reports
• Signed tenancy agreement
• Signed inspection reports
• Contractors’ invoices, estimates, receipts and quotes
• Rent statement
• Time-stamped photographs or videos
• Correspondence between you and the tenant
• Witness statements

Now, it really is crucial that you submit the signed check-in and check-out inventory reports.

A comparison of the property’s condition will help the adjudicator assess grounds for deposit division based on damage, outstanding bills, cleaning and contractors’ fees. Without the inventories, adjudicators usually reject the landlord’s claim.

The original tenancy agreement is essential too, since you’ll need to establish what your and your tenant’s contractual obligations are.

The other things listed above are non-essential but will each put you in a way better position to win the case. If you can show the adjudicator the issues that have caused friction, illustrate the costs involved and the payments owed, or point out any admissions of liability, you’re much more likely to succeed.

Why you should keep up the conversation with your tenants throughout the process

Even while the DPS dispute is happening, there’s always a chance you can reach a friendly agreement with your tenants – but only if you keep in contact.

If you’re on friendly enough terms, don’t be afraid to reach out and see if there’s any room for manoeuvre even after that the dispute process has begun.

You’ll only have until the adjudicator reaches their decision though, since it’s final and binding.

With the right referencing and move-in process, you’ll find yourself in a much stronger position if you’re ever faced with a deposit dispute, or even an eviction. And if you want help tightening the bolts at the start of every tenancy, we should talk.

Give us a call on 020 3432 3888 or send a hello to

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and let’s talk tenants!