Arguments over deductions from tenancy deposits are one of the most common areas of conflict between tenants and landlords.

The average rental deposit is approximately £1,100 but despite such a huge sum being involved, there are several grey areas that prompt confusion and disputes.

This article is designed to arm tenants with advice that will help them understand what can - and cannot - be deducted when they move out.

The role of inventory reports

It is essential that an inventory report is completed on a rented property both before a tenant moves in and after they move out. If completed diligently, they are a failsafe way to achieve peace of mind for both the landlord and tenant.

They can be a long read running to dozens of pages. A good one will document each room both in writing and photographically and record any damage to the furniture or white goods as well as the state of the fixtures and fittings.

This report is designed to prevent landlords from making unjustified deposit deductions, and to stop tenants wriggling out of paying for damage they have inflicted on a property.

What can be deducted

The cost of repairing damage

If a tenant causes damage to a wall, white goods, plumbing or carpets, for example, and the inventory reports prove the damage was not present when the tenants moved in, then the cost of completing the repairs can be deducted from a tenant’s security deposit.

But some landlords and letting agents have been known to over-charge tenants for this kind of repair work. One famous case revealed that one tenant had been charged £60 to replace a smoke alarm, even though the local council was distributing them for free. Another case included a landlord who charged tenants £50 to replace a light bulb.

Unpaid rent

If a tenant falls behind in their rent and still owes it when they move out, then this can be deducted from their security deposit.

Missing or damaged items

If a washing machine or table, for example, have been damaged beyond repair and a replacement is needed then a landlord or letting agent can charge the tenant for the replacement.

But the tenant cannot be charged for a new item unless it was supplied as new when the tenant moved in. And even then, a depreciation formula should be used to work out the item’s value up until it was damaged beyond repair.

Pet problems

If your landlord allows you to keep a pet in your home, then the cost of giving the property an extra clean to eradicate its smell can be deducted from your deposit.

But again, this is a grey area. There is no official guidance on how much a tenant can be charged for a ‘deep clean’ to eradicate the smell of a dog or cat, so agents and landlords can intepret 'reasonable cost' differently.

Burden of proof

The good news is that the burden of proof is on the landlord, not the tenant. If a landlord wants to deduct money from a deposit, they must provide proof that it is a legitimate cost - for example by supplying pictures of the damage and receipts for the work involved - and also prove that the cost is reasonable.

As one security deposit provider puts it “the deposit remains the tenant’s money until the landlord has successfully proven their claim”.

On the downside, many tenants give in and allow the deductions because fighting it will delay the rest of their deposit being returned to them.

Gardens

Most tenancy agreements for rented properties with a garden will set out what gardening needs to be done during the tenancy including cutting the grass, pruning back weeds and generally keeping the green space tidy. Tenants who let the garden run riot and then can’t be bothered to get green fingered at the end of the tenancy should expect to be charged for the work.

What cannot be deducted

Wear and tear

Many landlords wrongly believe that the cost of repairing scuff marks to furniture and walls can be deducted from a tenant’s security deposit. The regulations say only ‘excessive’ wear and tear can be charged for. What the difference is between the two is a matter of debate, though.

Anti-social behaviour

A landlord can end a tenancy if there is clear evidence of anti-social behaviour such as excessive noise, partying or illegal activities such as drug dealing. But tenants cannot be ‘fined’ for this via deductions from their security deposit.

Unpaid utility or council tax bills

Unpaid bills left by tenants are a matter for the service suppliers or local authority involved to sort out, not the landlord.

The grey areas

Cleaning

The challenge of property cleaning is that there’s no official guidance on what ‘clean’ means. Many landlords and agents say cleaning prior to a check-out must be to a ‘professional’ standard but what does that really mean? It’s a grey area that some landlords interpret differently.

Repairs

As anyone who has refurbished a property knows, quotes by builders for repairs can vary hugely for the same work. This means that a landlord or letting agents can, within reason, charge a wide range of costs for repairs. Therefore, if the charge is contested by the tenant and it goes to arbitration, it’s difficult for adjudicators to gauge whether the cost is reasonable or not.

CreditLadder can help you improve your credit score

If you want to improve your credit position by reporting your rent payments, CreditLadder is the only way to improve your credit score and position across all four of the main Credit Reference Agencies in the UK, namely Experian, Equifax, TransUnion and Crediva. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money.

CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.

Remember the information provided in this article is for information purposes only and should not be considered as advice.