Deposit Protection Service > Claims and disputes > What makes a reasonable deposit claim?
There are many reasons you might want to claim some or all of the tenant’s deposit. They mainly fall under five categories.
Rent arrears
Cleaning and removal of items/rubbish left by the tenant
Repairs and redecoration
Replacement of missing or damaged goods
Garden maintenance
Landlords and letting agents have a duty to act reasonably and not claim more than is necessary to compensate for any loss. Each of these categories have different considerations to take into account when deciding on whether to claim, what to claim for, and how much of the deposit to ask for. If your claim ends up in dispute, adjudicators may consider a range of options to make good any breach of tenancy. These include:
- Replacement of an item if it's left in poor condition or damaged beyond repair
- Repair or cleaning where replacement cannot be justified
- Compensation if an item's been damaged and its value reduced or lifespan shortened
When making a claim — especially for repairs, redecoration, or the replacement of missing or damaged items — two key principles to consider are Betterment and Fair Wear and Tear. But what do these terms mean?
Betterment
The claim shouldn’t be used as an opportunity to make upgrades at the tenant’s cost. Betterment refers to the property being returned in a better condition than when the tenancy started. For example, claiming:
- The full cost of a replacement carpet when the tenant lived at the property for several years, and/or the carpet was already a few years old at the tenancy start
- Contribution towards the cost of a prestige brand replacement item when the original item was a more modest brand
- The cost of full professional end of tenancy cleaning but there were some cleaning defects when the tenancy started
Fair wear and tear
The House of Lords defines fair wear and tear as “reasonable use of the premises by the tenant and the ordinary operation of natural forces”. What’s considered ‘reasonable’ is open to interpretation so strict guidance on accounting for fair wear and tear isn’t available. Landlords should take into consideration the following factors during the check-out process. Adjudicators are likely to use similar guidelines when assessing the evidence:
Length of tenancy
The longer the tenancy, the more natural wear and tear there will be. How long items have been in use and through how many tenancies should also be considered.
Number and age of occupiers
Higher wear and tear can be expected in a tenancy with more occupants, like families with children. Scuffs, scrapes, higher appliance usage (like washing machines) are a part of normal family life. In contrast, a property occupied by a single person should see much less wear It’s important to consider these differences at the end of the tenancy.
Lifespan, quality and condition
If a landlord provides lower-budget or older items, it’s not reasonable to fault the tenant for damage from normal use. Adjudicators may want receipts or other evidence to confirm an item’s age, or cost and quality when new. The quality of the property itself is another consideration. Newer builds constructed with less durable materials can create a greater need for redecoration at tenancy end. Adjudicators may find it unreasonable to expect anything more than an equitable contribution towards these costs.
Wear and tear vs. actual damage
Wear and tear refers to items that have been worn out through natural use, while actual damage refers to items that have been negligently broken or marred. For example, light marks on a carpet might have to be viewed as normal wear and unavoidable. On the other hand, burnt out lightbulbs, or damage such as nail varnish spills on the floor or iron burns that occurred due to negligence could see the tenant liable for repair. Consider whether the item has been damaged or worn out through natural use versus negligence when making a judgement call.
Keeping good records
Despite best efforts to maintain a good relationship with your tenant, you may still need to claim from the deposit at the end of the tenancy. To give your claim the best chance of success, gathering good quality evidence at the right time is essential.
It's good practice to put everything in writing from the start of the tenancy and keep records of your communications and actions throughout (things like texts, emails and receipts for work done, mid-term property inspections). Detailed records can serve as evidence in the event of a dispute, and sometimes help you avoid them altogether.
Here's a list of important items to keep in order, and how they can serve as evidence during the adjudication process, if needed.
1) Signed tenancy agreement*
The signed tenancy agreement outlines each party's responsibilities, what they've agreed to and what they can expect from one another. It's useful to review the agreement when the tenancy ends to consider if you need to discuss any deductions with the tenant. It's also a document the adjudicator can use to help determine a fair and reasonable resolution.
2) Signed check-in and check-out inventory reports*
Check-in and check-out reports can be used to compare the property condition at the beginning and end of the tenancy. It's important the reports are signed by all parties showing everyone agrees with the description of the property. Signed reports hold more weight as evidence, whereas unsigned reports can't be verified, making it more likely the claim is rejected.
3) Signed reports of periodic property inspections*
Periodic property inspections are an opportunity to make sure it's being maintained, as well as identify any potential issues. These reports don't need to be as detailed as check-in/out reports but can add useful evidence.
4) Copies of any correspondence between the landlord and tenant
Communications showing when repairs were reported, when they were completed, what was agreed to between parties, admissions of liability and service of notice can help the adjudicator establish a timeline of events.
5) Invoices/estimates/receipts and quotes*
These documents illustrate claim costs for repairs or restoration, redecoration, replacement of damaged goods, gardening, cleaning and waste disposal. Where possible, the contractor should itemise their costs, detailing the work completed.
6) Statement of the rent account**
A rent account statement is important when the claim involves rent arrears. It helps the adjudicator understand what payments were owed, what payments were made and what payments were missed. The statement should document the property, person the account relates to and a breakdown of how the rent arrears are calculated.
7) Date stamped photographs or video recordings*
Before and after photos allow adjudicators to see the reason for the claim. Photos should be submitted with an explanation of what they're showing (e.g. colours, item description, marks on surfaces, etc.) and clearly show the alleged damage or defect.
8) Witness statements
Witnesses, such as independent contractors, surveyors' reports or third-party agencies can have useful information for the adjudicator to consider regarding a claim. Landlords and tenants can both submit witness statements, or letters to support their claim. The adjudicator won't contact witnesses to obtain further evidence, cross-examine them, or take evidence under oath.
* Good evidence for: non-payment of rent, cleaning, damage to property, gardening, outstanding utility bills, contractors' fees for maintenance, wear and tear
** Good evidence for: claims relating to the payment of rent.