What Stockport landlords should know about deposit deductions

The end of a tenancy can be a stressful time for landlords. You need to be sure the property isn’t going to be vacant for too long and there may well be a need for repairs, maintenance or redecoration. Then, there’s the deposit release process and decisions about whether you need to make any deductions.

Deposits are one of those contentious issues where landlords can get a particularly bad reputation especially if the tenant think their landlord has made an unfair deduction or that they’re wrong for keeping anything back.

Thankfully, security deposits are protected by Government-backed deposit protection schemes. We use Deposit Protection Service (DPS) at Three Sixty Living. These schemed have reduced the controversy around returning deposits. There is a formal dispute resolution process that both landlords and tenants can apply to if there disagreements and these are handled externally. However, it is always worthwhile for landlords to know and understand what deductions can and can’t be made for. After all, being forewarned is being forearmed.

Reasonable deposit deductions

When a tenant moves out, you should receive the property back in the condition that it was found in, accommodating fair wear and tear and your expectations will be set out in your tenancy agreement and accompanying inventory. A good example would be that, if the property was handed over after being professionally cleaned, it is reasonable that it is cleaned to the standard on the way out.

Other reasonable deductions might include:

• Damage caused by the tenants
• Missing items
• Unpaid rent or bills.

So, what is fair wear and tear?

On the face of it, fair wear and tear can sound ambiguous and it is often a sensitive topic on what does or doesn’t meet the requirements. Whilst it isn’t an exact science, it generally boils down to anything that could be caused or attributed to every day living. A good example would be that scuff marks on a wall can occur quite easily and would fall into the category of fair wear and tear. But, a dent in a wall or a broken window would be considered above and beyond fair wear and tear and would therefore be deductible.

It’s imperative to be fair. If a kitchen cupboard, for example, has been broken, it wouldn’t be considered fair to try and reduce the deposit by the cost of replacing the entire kitchen. Alongside this, the level of wear and tear would differ on the number of occupants at a property as well as the length of time they’ve been there. There’s likely to be more wear and tear if you’ve rented to a family with young kids compared to a young couple, for example.

How to avoid deposit disputes

This is where being forewarned is forearmed. Completing a thorough inventory at the start of your tenancy and sharing this with your tenants is a solid foundation to this. Recording the condition in writing and with accompanying photos offers a fair and balanced approach to any potential deposit disputes that may arise. Should any proposed deductions be disputed, an inventory will be vital evidence for a successful second claim. Similarly, a thorough check out report with accompany photos will also be a critical part of any claim.

As part of our managed service, we undertake the inventory and check out reports with accompanying photos, register the deposit and manage any disputes on your behalf at no extra cost.