At the end of a tenancy in England, you can deduct from a tenancy deposit for damage beyond fair wear and tear, missing items, cleaning needed to get the room back to the condition it was let in, and unpaid rent, if the tenancy agreement allows it and you can prove it. Agree the deductions with the tenant, then return the rest within 10 days of agreeing, as GOV.UK explains. If you can't agree, the disputed amount stays protected and the scheme's free dispute service can decide. What wins disputes is evidence: a detailed inventory with dated photos at the start and end of the tenancy, and receipts or quotes.
How deposit deductions work
Your deposit should already be protected in one of the government-approved schemes, with the prescribed information given to the tenant. If it isn't, sort that out first and see tenancy deposit protection: the 30-day rule. GOV.UK lists the schemes on its page about deposit protection schemes and landlords.
At the end of the tenancy the process is broadly:
- Inspect the room (and any shared areas you're claiming for) against the start-of-tenancy inventory.
- Work out any deductions and what each one is for, with evidence.
- Propose them to the tenant in writing.
- Agree the split, or raise a dispute.
- Return the agreed amount through the scheme or yourself, depending on the scheme type, within the time limit.
What you can deduct for
The tenancy agreement sets out what a deposit can be used for. Typical reasons include:
- Damage: a burn on a worktop, a broken wardrobe door, holes in the wall from shelves put up without permission.
- Missing items: things listed on the inventory that aren't there at the end.
- Cleaning: where the room is left dirtier than it was at the start, allowing for normal use.
- Unpaid rent: arrears still owing when the tenancy ends.
- Other costs the agreement allows: only payments the Tenant Fees Act 2019 permits. GOV.UK's guidance on fees you can charge as part of a tenancy lists them. They include default fees for a lost key (the reasonable cost of replacing it, with evidence) and late rent (only once rent is at least 14 days overdue, and at no more than 3% above the Bank of England base rate on the overdue amount), and only if the tenancy agreement includes them. You can't charge a fee that isn't on the list, so don't take one from the deposit either.
Fair wear and tear
You can't charge a tenant for the ordinary wear that comes from someone living in a room. There's no single statutory definition. The Deposit Protection Service describes it as deterioration due to reasonable use, and adjudicators look at things like:
- how long the tenant lived there;
- how many people used the room or area (more occupants means more expected wear in shared areas);
- the age and condition of each item at the start; and
- whether the change is normal use (a slightly worn carpet path, faded curtains, light scuffs) or damage (stains, burns, tears, breakages).
Betterment
If something is damaged, you generally can't charge the tenant for a brand-new replacement of an old item. Making the property better than it was when the tenant moved in is called betterment, and the Deposit Protection Service says adjudicators can't award it. If a carpet was already seven years old, an adjudicator will usually expect the deduction to reflect its age, not the cost of a new carpet, and may ask for receipts or other evidence of how old an item was. Claiming more than your actual loss is a common reason landlords lose part of a dispute.
Evidence: inventories, photos and receipts
The start-of-tenancy inventory
An inventory at the start of the tenancy (often called a check-in inventory) records what's in the room and its condition: furniture, walls, floor, windows, fixtures and anything else you provide. Good inventories have:
- a list of items with a short description of each one's condition;
- dated photos, close enough to show marks and wide enough to show the room;
- the date and who did it; and
- a copy given to the tenant, with a chance for them to point out anything you missed.
The end-of-tenancy inventory
At the end, compare the room against the start record, item by item, with new photos from the same angles. Anything different is a candidate for a deduction, after allowing for fair wear and tear.
Receipts and quotes
Show what each deduction costs: invoices for work done, quotes for work not yet done, or receipts for replacement items. Keep the costs reasonable.
Returning the deposit
GOV.UK says the landlord must return the deposit within 10 days of both sides agreeing how much the tenant will get back. How the money moves depends on whether the scheme is custodial (the scheme holds the money) or insured (you hold it). Follow your scheme's process. If you agree part of the amount but not the rest, don't sit on the agreed part; ask your scheme how to release it while the rest is disputed.
If you can't agree: the dispute service
GOV.UK's page on deposit disputes explains that each scheme offers a free dispute resolution service. Both sides must agree to use it, and the decision is final. While the dispute goes on, the deposit stays protected. If you use an insured scheme, GOV.UK says you or your agent must give the deposit to the scheme to hold until the dispute is settled.
The adjudicator decides on the written evidence, so:
- put each deduction as a separate item with its reason, cost and evidence;
- link each item to the start and end inventory entries and photos;
- explain why it isn't fair wear and tear; and
- be prepared to compromise on items where your evidence is thin.
GOV.UK says there may be a time limit to raise a dispute, so contact your scheme promptly and check its rules. If either side won't use the dispute service, the alternative is usually to settle it by agreement or in the county court. Take advice before going to court.
Rooms in a shared house
Deposits in a house let by the room raise a few specific questions.
One deposit per tenancy
Where each tenant has their own tenancy of a room, each deposit is separate, with its own protection, inventory and return. A problem in one room is that tenant's matter, not the whole house's.
Shared areas
Damage in the kitchen, lounge or hallway is harder. Several people use those areas, and their tenancies may have started at different times. Deducting from one tenant's deposit for damage to a shared area needs clear evidence that this tenant caused it. Spreading a cost across everyone "just in case" is unlikely to succeed in a dispute, and adjudicators expect more wear in shared areas where more people live. Regular shared-area inspections with dated photos, and a simple way for tenants to report damage when it happens, help a lot.
Joint tenancies
If several people hold one joint tenancy of the whole house, there's usually one deposit for the tenancy, and deductions and returns need to be agreed with the tenants together. See tenancy agreements for a room.
Turnover
Rooms turn over often. If each new inventory starts from the last end-of-tenancy record, you only need to note what's changed, and the chain of records stays unbroken.
Common mistakes that cost landlords disputes
- No start-of-tenancy record. Without it, you can't show the room was in better condition when the tenant moved in, and adjudicators will usually find in the tenant's favour.
- Vague descriptions. "Good condition" for every item says very little. Note marks, wear and age, item by item.
- Photos without dates or context. A close-up of a stain doesn't show which room it's in. Take a wide shot and a close-up of the same thing.
- Charging new-for-old. Claiming the full price of a new item for an old one usually fails. Reflect the age and condition of what was damaged.
- Round numbers without receipts. "£100 for cleaning" with no invoice or quote is hard to defend. Get a quote, even if you plan to do the work yourself.
- Waiting too long. Inspect promptly when the tenant leaves, propose deductions quickly and keep to the return deadline.
- Mixing up the tenancies. In a shared house, make sure each deduction is linked to the right tenant's room and tenancy.
Worked example
This is an invented example. The amounts are made up to show the method.
Leah moves out of Room 1 in a four-room house after two years. Her deposit was £750.
The end-of-tenancy inventory compared with the start record shows:
- Desk chair: the start inventory and photos show it in good condition; at the end the seat is torn. A similar chair costs £60. The chair was three years old when Leah moved in, so the landlord, Owen, proposes £30, reflecting its age.
- Walls: there are four small holes from picture hooks. The tenancy allowed small picture hooks. Owen treats this as fair wear and tear and doesn't claim.
- Carpet: a large red stain by the bed that isn't on the start photos. Professional cleaning was quoted at £85. Owen proposes £85.
- Rent: the final month's rent was paid in full, so nothing to deduct.
Owen sends Leah the list with photos and the quote. She agrees to the carpet and the chair. Owen returns £635 within 10 days of agreeing. If she hadn't agreed, the £115 in dispute would have stayed protected while the scheme's dispute service decided.
How Rentap helps
- Room inventories: record what's in each room, then a start-of-tenancy and an end-of-tenancy inventory with photos. Each new inventory starts from the latest one, so you only change what's different.
- Deposits: record the amount, the date you received it and notes, then what you returned and each deduction with its reason. See deposits.
- Expenses: keep the receipt for every repair or replacement against the room.
- Issues: tenants report damage with photos when it happens, so there's a dated record. See issues and repairs.
Rentap doesn't protect deposits, track the scheme or the deadlines, or handle disputes; you do those with your scheme. For the words used here, see our glossary of letting terms, and for ending a tenancy, see the Section 8 grounds.
Sources
- Tenancy deposit protection (GOV.UK)
- Tenancy deposit protection: disputes and problems (GOV.UK)
- Deposit protection schemes and landlords (GOV.UK)
- Tenant Fees Act 2019 (legislation.gov.uk)
- Fees you can charge as part of a tenancy (GOV.UK)
- In disputes, be fair (Deposit Protection Service)
Last checked: 10 October 2026. This guide is general information, not legal advice.