What Reasons Can a Landlord Keep My Deposit?
Key Takeaways:
- Landlords can keep your deposit for unpaid rent, but they cannot deduct more than what is owed.
- Outstanding utility bills are your responsibility, not your landlords – unless they have paid them on your behalf.
- Landlords can withhold your deposit if you leave the property or garden in a worse condition than when you move in.
- Landlord can keep your deposit if there is damage to the property that is beyond fair wear and tear.
- Any missing inventory items must be replaced or accounted for.
- You are not responsible for damage caused by poor landlord maintenance or external factors (eg. burglary) if the damage is reported promptly.
- Your landlord can make deductions for breaking the terms of your lease, such as subletting or keeping pets without permission.
- Your landlord can keep your deposit for breaking the lease if early termination causes financial loss to the landlord.
Moving into a rental property is often the first step towards independence, but it can be full of confusion and uncertainty. Your first time paying real bills, your first rent payment and your first dealings with landlords can all be overwhelming. Whether you are a seasoned pro or new to renting, one thing that consistently causes contention is the tenancy deposit.
Before moving in, you will have handed over a significant sum of money to the landlord to act as security against potential damage or unpaid rent. If you are a responsible tenant, you will usually receive your full deposit back at the end of your tenancy. However, your landlord can legally withhold part or all of your deposit if you have unpaid rent, outstanding bills or property damage.
Many landlords are reconsidering their investments due to increased regulations like the Renters’ Reform Act, with many choosing to sell tenanted properties rather than continue dealing with tenancy agreements and disputes. That is why it is all the more important to know your rights and obligations as a tenant.
How Much Deposit Should I Pay My Landlord
In most cases, the deposit is set out in the contract that you will sign to take on the tenancy of the property. It will also be documented in paperwork in advance of you signing your agreement, so you can judge if the property is affordable.
It is normally calculated at a rate of 5-6 weeks’ worth of rent. Once paid, it secures the property ahead of moving in. The landlord benefits from the security of having funds to cover repairs and outstanding costs. For the tenant, it acts as a solid interest to the landlord that they are keen to rent the property.
In some instances, where pets are allowed to stay in the property, you may find that the deposit is slightly higher to cover the increased risk of damage to the property. You will be pleased to know that a cap has now been put in place on deposits, stopping landlords from exploiting tenants. Thanks to the Tenant Fees Act 2019, deposits are much more affordable than they were before.
What Does the Landlord Do With My Deposit?
Landlords in the UK are legally required to protect your deposit in an approved tenancy deposit protection scheme (TDP) within 30 days of receiving it. These schemes include:
Your landlord has an obligation to you as a tenant to show you how they have protected your deposit and at the end of the tenancy, they must return the deposit to you within 10 days of both parties reaching an agreement on how much should be returned. Your landlord must provide details of where your deposit is protected, and if they fail to do so, you may be entitled to compensation of up to three times the deposit amount.
Check out our landlord’s guide to tenancy deposit protection for a more in-depth explanation of the schemes.
Can My Landlord Keep My Deposit?
Yes, in certain situations landlords can legally withhold a deposit to cover specific costs, including:
Landlord Keeps Deposit for Unpaid Rent or Bills
Any unpaid rent will come directly out of your deposit, and this can make putting down a deposit for the next place even harder with reduced funds. However, for some people, it is a practical way to pay rent.
It has been a common occurrence for some tenants to withhold paying their last month’s rent and instead allow the landlord to take it from the deposit. This can be deemed acceptable by some landlords and not by others, so it is always wise to check the full terms of your tenancy agreement to see if this is an option.
Where it is not, look for sections on the agreement that refer to late payments. If you are hoping to pay your final rent from your deposit, it will not hit the landlord’s bank account until after the regular due date. This could incur late payment fees that make your final rent much higher than it should be. Keep in mind these charges can only be applied if the agreement states they can, and your rent is at least 2 weeks late.
You should also remain aware that rent is fully payable up until the end of the tenancy agreement. Check the small print as sometimes it isn’t quite as clear as you would hope. It could be that your tenancy is a rolling one or that you are responsible for rent payments until new tenants move in!
You are responsible for paying any outstanding utility bills. However, the landlord can only withhold the deposit if the utility bills have cost them money directly.
Your debt lies with the energy provider, not the landlord. This means you must inform your providers of the moving date or you could be chased for months with lots of additional charges being stacked on top of the original bill.
Cleaning and Property Condition
These are perhaps the most common areas that cause landlords to withhold some or all the deposit. Your tenancy agreement will state that you must leave the property in a condition that matches the one you found it in when the tenancy began.
Some tenancy agreements will state that it must be professionally cleaned, but this is sometimes a loosely used term for saying that it must be cleaned to a very high standard. If you feel you are unable to do that or feel your efforts may not match the expectations of the landlord, hire a professional cleaning company.
If there is a term in the agreement that states it must be cleaned by a professional company upon the end of your tenancy, you have every right to ask for proof that the same was done at the start of your agreement.
Kerb appeal is a huge asset to landlords, and if the property looks messy from the outside, prospective tenants may think the same about the inside. As a result, if you let the garden get overgrown, kill the lawn or leave it in poor condition, the landlord may take back some or all of the deposit to restore it to how it was. You are under no obligation to improve the garden, but like with the rest of the property, you should leave it in the same condition you found it.
When it comes to decorating, your landlord cannot keep the deposit because they fancy carrying out a bit of decorating. They can keep it if you make any significant changes without consent from them. They could also keep the deposit if you have caused damage that requires an area to be redecorated.
It is always wise to check with the landlord in advance of any work you may wish to do, as some may categorise significant changes differently to others. Painting a door in one property may have vastly different implications to what it would in another!
Damage to the Property or Missing Items
All landlords understand that fair wear and tear is likely during the time of a tenancy and cannot make deductions from your deposit for this. It is only when the damage comes at a significant cost to them that they may claim some of the deposit to cover them.
Things such as holes in walls, broken furniture or stained carpets may all see deductions.
You should try your best to keep the property in its best possible condition but also understand that fair wear and tear is to be expected. Things like scuffs on walls, cannot be held against you.
In some instances, damage is caused by the landlord. For example, the landlord booked a repair job and it was done poorly. You are not liable for any charge brought about because of poor workmanship on the initial repair. If you report a problem to the landlord about damage that was not caused by you, such as a burglary, you cannot have any of your deposit deducted for the work needed to rectify the damage. However, if you didn’t report it, you could find deductions being made.
When signing your tenancy agreement, there will be an inventory in place which catalogues the items that belong to the property. If any of these items are missing or broken at the end of the tenancy, the landlord could hold some of your deposit to cover the cost of replacing them. Inventory check-in reports can be very detailed, so it is wise to make sure you don’t miss anything and replace anything that may be missing from the original report. This extends to lightbulbs and utensils.
Breach of Tenancy Agreement
If you were in breach of your agreement, your landlord will use your deposit to recover any costs. Breaches could include, leaving the property before the fixed term has ended. The landlord will keep the deposit to cover lost rent and, if the deposit does not cover outstanding rent amounts, you could find yourself in court.
Should you have bought a pet into the property despite the agreement forbidding it, you will not have your deposit withheld, but they could deduct from the final returned amount a sum that covers any damage caused by your pet.
Should you leave the property before the tenancy ends, whether it be on a rolling contract or a fixed term, the landlord has the right to use the deposit to cover any rent they have lost.
How much can landlords charge for damage?
Whilst a stain on a carpet may lead a landlord to see an opportunity to refurbish the living room, they cannot charge you for the full cost of a new carpet if it could be cleaned or repaired at a cheaper cost than the new one.
Where items cannot be restored to as close to new as possible, the landlord cannot charge you the full price for a new item unless they were new when you moved in, or you have not been a tenant for very long. If the items are quite old and you have caused damage to them, you could be billed for a proportion of the cost to replace the item. If this happens, investigate the costs of a replacement item to see whether the landlord is charging you a realistic amount. If the curtains cost £150 brand new, and they are asking you for that amount or more, you can challenge them and potentially get more of your deposit back.
How to Dispute a Landlord Keeping Your Deposit
If you feel your landlord is withholding your deposit unfairly, follow these steps:
- Request a detailed breakdown – Ask for a list of deductions with receipts or proof of damage.
- Check your tenancy agreement – Ensure deductions align with the terms of your contract.
- Use the deposit protection scheme’s dispute service – If your deposit is protected, you can challenge deductions through their free Alternative Dispute Resolution (ADR) service.
- Seek legal advice – If the dispute remains unresolved, organisations like Shelter, Citizens Advice, or a housing solicitor can assist.
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Landlord Deposits: FAQs
What is considered fair wear and tear?
Fair wear and tear is expected and far from significant damage to the property. General changes caused by everyday living, for example, faded furnishings, loose door handles, or worn flooring or carpets. There can be disagreements between landlords and tenants with regards to what counts as fair wear and tear. If you’re looking to resolve a dispute relating to this topic, we advise escalating to a deposit protection scheme.
How can I reduce the likelihood of disputes?
Clearly communicate your expectations to your tenant regarding their responsibilities during the tenancy, including what is and isn’t allowed on the property, and how it should be left when the tenancy ends. This can be achieved by:
- Building and maintaining a positive relationship with tenants to facilitate smooth negotiations when needed.
- Ensuring your property is in excellent condition before the tenancy begins.
- Conducting a thorough check-in inventory.
- Photo evidence to cover your back if you are accused of causing damage that was already there before you moved in.
- Scheduling regular inspections to monitor the condition of the property.
What should I include in the check-in inventory for my tenants?
The check-in should include a detailed list of the property’s condition, including all furniture, appliances and fixtures. Accompany this list with clear, dated photographs of the property to support any future claims about damages or maintenance issues.
Can I ask my tenants to make repairs to the property?
Tenants are usually responsible for minor repairs, such as changing light bulbs or unclogging drains, but landlords are generally responsible for maintaining the property’s structure and major systems (eg. plumbing, heating). Ensure that the tenant’s responsibilities are clearly outlined in the tenancy agreement.
