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Landlords · Originally published · Updated · 2 min read

When tenancy damage costs more than the deposit

How landlords and tenants in England can assess proposed deductions, organise evidence and separate the protected deposit from any additional claim.

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A repair bill can exceed the protected tenancy deposit. When that happens, first establish what the tenant may actually owe. A contractor’s estimate shows what work could cost. Liability depends on the agreement, the condition of the property and the evidence about what happened during the tenancy.

Build the evidence item by item

Compare the check-in and check-out reports and match any photographs to the same room or fitting. Record when the item was installed, what condition it was in at the start, and what changed. For each proposed deduction, explain the relevant tenancy obligation and why the amount reflects the loss. A dated quote or invoice helps show how the figure was reached.

Tenancy Deposit Scheme guidance distinguishes damage from fair wear and tear and takes account of betterment. Consider a carpet that was already several years old at check-in. Even if the tenant caused a new stain, the price of fitting a brand-new carpet is only the starting point for assessing the loss. The original condition, remaining useful life and possibility of cleaning or repair all matter.

Discuss the protected deposit

Share a clear breakdown with the other party and give them an opportunity to respond. A tenant can point out an item recorded as damaged at move-in or provide messages showing that they reported a defect during the tenancy. Set out which sums are agreed and which remain disputed, then check how the scheme releases any undisputed money.

GOV.UK explains that deposit schemes offer a free dispute resolution service when the parties disagree about the amount to return. Both parties must agree to use it and provide evidence. Check the applicable scheme’s process and deadlines promptly.

Consider the balance separately

Deposit adjudication deals with allocating the disputed deposit. If an evidenced loss remains after any agreement or award, take advice before deciding whether a separate claim is worthwhile. Show the adviser the full calculation, amounts already recovered and any earlier settlement. The strength of the evidence, time and likely costs all affect that decision.

Keep the original reports, relevant correspondence and a simple schedule of costs together. This lets both sides see how the proposed figure was calculated and identify any point that can be resolved without a wider dispute.

Sources: GOV.UK, Tenancy deposit protection disputes and problems. Tenancy Deposit Scheme, A guide to deposits, disputes and damages.

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