Tenancy deposit
A tenancy deposit is a sum of money a tenant pays you at the start of a tenancy as security against specific risks. Unpaid rent, damage beyond fair wear and tear, missing items, or reasonable cleaning at the end of the tenancy. It is not an extra fee or income. If there are no justified claims, it must be returned.
In England, for most assured tenancies you must:
Keep within the tenancy deposit cap, usually up to five weeks’ rent, or six weeks for higher rent tenancies.
Protect the deposit in a government-approved scheme within the legal deadline.
Serve the scheme’s prescribed information and relevant documents to the tenant.
Under the Renters’ Rights Act, correct protection and paperwork remain strict pre-conditions for using key possession grounds. Failing to comply can lead to financial penalties, restrictions on recovering possession, and difficulties defending deposit disputes.
Good practice is to:
Use a detailed inventory and schedule of condition at check-in and check-out.
Set out your proposed deductions in writing with evidence, photos, invoices, quotes.
Distinguish clearly between fair wear and tear and true damage or loss.
Disputes are usually handled through the deposit scheme’s free adjudication service, where clear records and proportionate claims are essential.
Also see our landlord blog article, including:
