Common reasons for tenancy deposit disputes

Cath, Assistant Lettings Manager at CPS Homes in CardiffCath, Assistant Lettings Manager, highlights a few of the most common reasons deposit disputes are raised between tenants and landlords at the end of a tenancy...

Estimated reading time: 3 minutes

Before a tenancy begins, renters can expect to be asked to pay a deposit which the landlord must hold in a government-approved tenancy deposit scheme. The deposit amount is usually at least one month’s rent and acts to not only secure the property for the soon-to-be tenants so they can be sure it’s definitely going to be their new home, but also as a security in case the tenants fail to meet their obligations in connection with the tenancy.

The deposit is a way of a tenant saying they will treat the property with care and respect and will pay the rent on time throughout the tenancy.

At the end of a tenancy the landlord or their letting agent should be carrying out an inventory check-out so they can fully assess the condition of the property before the tenants vacate. If the tenants have failed to care for the property and there is evidence of damage or broken or missing items that aren’t considered fair wear and tear, then they have the right to seek deductions from the deposit to fund the repair and/or replacements.

What are some of the most common reasons for a tenancy deposit dispute?

For tenants and landlords to have the best chance of avoiding problems come the end of the tenancy it’s worth knowing the most common reasons for a tenancy deposit dispute. If you both know the most common reasons, you can both do your best to avoid them from occurring! So, the top reasons for a tenancy deposit dispute include:

  • Not leaving the property in an agreed clean state
  • Damage caused to the property or furnishings
  • Tenant not receiving the deposit back from the landlord at the end of the tenancy
  • Redecoration costs
  • Items missing from the property
  • Rent arrears

Read: Expectations for deposit claims and potential disputes

Understand your tenancy agreement

It’s important for both tenant and landlord to read through the tenancy agreement before signing it and ensuring that they each fully understand the obligations and responsibilities of themselves and each other.

If a landlord wants to request deductions at the end of the tenancy, they must do so through the correct avenue with their chosen deposit protection scheme, and this will allow the tenant to either agree to the deductions or challenge them if they deem them to be unfair. Hopefully, an amicable resolution would be reached, but if not, it would have to be escalated to a formal deposit dispute which would be overseen by one of the government-approved tenancy deposit schemes.

The evidence would be assessed before a decision is made on whether the suggested deductions requested by the landlord are fair or not.

Read: What you need to know about tenancy agreements and deposits

If you’re a landlord or tenant in Cardiff looking for property suitors or your next home, don’t hesitate to get in touch with our lettings experts here at CPS Homes. You can reach out to us to learn more about how we can help by calling 02920 668585, e-mailing enquiries@cpshomes.co.uk or by popping into one of our three Cardiff branches.

14 September 2022

The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.

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