Woodhouse's Landlord Guide to Deposit Disputes: Maximising Your Claim
This comprehensive guide outlines the evidence and principles (Betterment and Apportionment) required by Tenancy Deposit Scheme (TDS) adjudicators when reviewing a claim against a tenant's deposit.
Part 1: Evidence and Preparation Checklist
The burden of proof rests entirely with the landlord. Adjudicators must be persuaded "on a balance of probabilities" that a loss was suffered due to the tenant's breach of the tenancy agreement.
Critical Evidence Requirements
Check-In/Out Reports and Photographs
Check-In/Out Reports
Must be dated, detailed, clear on the property address, and preferably prepared by an independent clerk. Must be comparable to each other.
These are the most important documents to show the change in condition.
Photographs
Must be dated. Adjudicators require comparable 'before and after' photos of the exact area being claimed.
Ensure photos clearly support the claim and show the damage is beyond Fair Wear and Tear.
Financial Proof and Tenancy Agreement
Financial Proof
Must include invoices or quotes that clearly break down the work done (e.g., "Deep clean kitchen" not just "End of tenancy work").
Invoices for work completed hold the most weight. Estimates are useful but less persuasive.
Tenancy Agreement
Mandatory for all claims to verify the tenant's contractual obligations (e.g., cleaning clause, maintenance of fixtures).
Provide the original agreement and all renewal or addendum documents.
Item Age & Cost
Original receipts or invoices proving the Purchase Date and Original Cost of any item claimed for replacement.
Essential for calculating Betterment (Apportionment).
Part 2: Claims for Cleaning, Repair, and Disposal
Cleaning Claims (Payable at Full Cost)
The law does not apply betterment to cleanliness. If the standard of cleanliness at check-out is worse than at check-in, the tenant is liable for the full cost of restoring that standard.
- Standard Required: The property must be returned in the same standard of cleanliness as it was at the start of the tenancy. If professional cleaning was performed at check-in , the tenant must meet this standard.
- Adjudicator's View: An award will be made for the reasonable cost of cleaning to restore the original standard, provided the landlord submits a professional invoice.
Repair Claims and Disposal Claims
Repair Claims (Full Cost for Non-Betterment Work)
If damage is minor and only requires a repair (e.g., fixing a loose fitting, plastering small holes, fixing a broken hinge), the adjudicator will typically award the reasonable full repair cost. Repair is considered the most reasonable and economical remedy and does not put the landlord in a better financial position.
Disposal Claims (Full Cost for Tenant's Property)
If the tenant abandons personal belongings or bulky items, the landlord is entitled to claim the full, reasonable cost of removal, disposal, and any associated labour.
Part 3: Claims for Replacement and Betterment (Apportionment)
The Rule of Betterment
Where damage requires replacing an item (like a carpet, sofa, or missing item), the landlord cannot claim "new for old." This is Betterment and is not lawful. The law makes an adjustment to account for Fair Wear and Tear (F.W.T.).
F.W.T. adjustment factors include:
- The age and condition of the item at the start of the tenancy.
- The item's average useful lifespan.
- The length and nature of the tenancy (e.g., single person vs. family with children).
Applying Apportionment (Calculating Lost Value)
To avoid betterment, the landlord must use Apportionment to determine the item's depreciated value—the tenant's liability is only for the remaining useful life of the item.
The Apportionment Formula
Step-by-Step Apportionment Calculation
01
Calculate Annual Depreciation (E)
This determines the item's value loss per year.
02
Calculate Remaining Lifespan (D)
This determines how many years of value were lost due to the damage.
03
Calculate Apportioned Claim (F)
This is the final amount the landlord can claim from the tenant.
General Guidelines for Expected Useful Lifespan (C)
Adjudicators use these guidelines (or similar ones) to assess the expected lifespan of items. The Landlord must choose the quality level and justify it with evidence.
Note on Decoration/Redecorating
Note on Decoration/Redecorating: The lifespan of décor is critical. If paintwork has exceeded its useful lifespan (e.g., a hallway hasn't been painted in 4 years), the adjudicator will likely make no award for general wear, even if scuffed. Claims for damage (holes, nail screws) are separate and will be awarded for the additional repair work needed.
Getting Quotes and Making Claims
When preparing to make a claim against a tenant's deposit, it is crucial for landlords to gather solid evidence. Always obtain detailed quotes or invoices for any work required. This ensures transparency and strengthens your claim for deductions.
1
Cleaning Costs
If the property's cleanliness has deteriorated beyond the standard recorded at the start of the tenancy, obtain quotes or invoices from professional cleaning services. Ensure these reflect the cost to restore the property to its original condition.
2
Disposal of Left Items
Should tenants leave behind personal belongings or waste, document these items thoroughly with photos and a descriptive list. Secure quotes or invoices for the cost of their removal and legal disposal.
3
Minor Repairs
For any minor damages that extend beyond fair wear and tear, such as small holes, scuffs requiring touch-ups, or minor fixture repairs, gather professional quotes or invoices to cover the cost of restoration.
Landlord's Legal Responsibilities
Landlords have specific legal duties when it comes to tenancy deposits and dispute resolution. Understanding these obligations is crucial for navigating any claim process successfully.
Provide Full Evidence for Claims
It is the landlord's responsibility to provide the full evidence for any deposit claim. Without comprehensive documentation, claims are unlikely to be upheld.
Protect Deposits with Approved Scheme
Tenancy deposits must be protected with an approved scheme. It is essential that Landlords understand the Terms and Conditions of the scheme.
Adjudicator's Decision is Final
Any dispute is determined by the scheme's independent adjudicator, whose decision is final and binding on both the landlord and the tenant.
Important Disclaimer
If you intend to carry out cleaning, decorating, or repairs with a view to claiming the cost from the tenancy deposit, please note you do so at your own financial risk. You may submit a claim for damage, but the scheme’s independent adjudicator may not award the full amount—or anything at all. Any shortfall will be your responsibility.