The tenancy deposit is legally the tenant’s money, and any deductions made by a landlord at the end of a tenancy must be fair, reasonable, and supported by evidence. Whether you’re a landlord or a tenant, understanding what can—and can’t—be deducted helps avoid disputes and protect your rights.

Here’s a detailed breakdown of what landlords can legally deduct from a tenant’s deposit in the UK.

Unpaid Rent

If the tenant leaves without paying the full rent (as agreed in the tenancy agreement), the landlord can deduct the outstanding amount from the deposit. However, use caution: if the full deposit is used to cover rent, no funds remain for damage or cleaning costs.

Damage Beyond Fair Wear and Tear

This is the most common reason for disputes. Damage that exceeds “fair wear and tear” (defined as normal use and aging) is deductible. Examples of deductible damage include holes in walls, stained carpets, and broken fittings due to misuse.

Other Deductibles

• Outstanding Bills: Utility bills or council tax if tenant responsibility.
• Missing Items: If items are missing from the inventory report.
• Cleaning Costs: If the property is left unreasonably dirty.
• Garden Maintenance: If agreed in tenancy.
• Unauthorised Alterations: Cost to restore property.

Deposit Dispute Resolution Service (DRS)

If there’s disagreement over deductions, all government-approved Tenancy Deposit Protection schemes offer a free Dispute Resolution Service. Independent adjudicators review written evidence only and make binding decisions within 28 days.