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Why Landlords Make Deductions from Tenant’s Deposits

By 2 min read • September 20, 2018

A house made of money and the blog title

Landlords are required to place a tenant’s deposit in a deposit protection scheme for the duration of a tenancy. When the tenant leaves, the deposit is handed back, but if there are any issues, a landlord can withhold some or all of the money. The Deposit Protection Scheme (DPS), a government-backed service, has revealed the reasons why deposits are withheld by landlords.

Cleaning Costs

The main reason why landlords withhold money from a deposit is to cover the cost of cleaning a property. 63% of landlords who used the dispute resolution service cited cleaning as an issue. Apparently, filthy ovens and toilets were a big problem, closely followed by dirty kitchen sinks, mucky skirting boards, and light switches.

“I’m always amazed how many tenants have lived in a property for maybe a year or so but say they have ‘never’ used the ovens,” says the head of adjudication at DPS.

Damage caused by tenants was another issue, with 53% of landlords stating they had withheld money to cover the cost of fixing the damage.

Dispute Resolution Process

Despite this, only 2% of landlords felt the need to enter the dispute resolution process, which suggests that the other 98% of landlords had good relationships with their tenants.

“Many of the problems that lead to deductions can be avoided when both tenant and landlord are aware of their responsibilities and stay in regular communication throughout the tenancy,” says Julian Foster from the DPS.

Other issues cited were redecoration, rent arrears, garden problems, missing items, and not paying the bills.

What do you think about bond deductions? Tell us in the comments.

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