Deposit Disputes: How to Protect Yourself and Win at Adjudication

Around 10% of tenancy deposits end in some form of dispute. Of those that go to adjudication, landlords lose more often than they win — usually because of poor evidence rather than a weak case. Here's how to build a strong position from the start.

How the dispute process works

When a tenancy ends, propose any deductions promptly. Once you and the tenant agree the amount, the deposit must be returned within 10 days. If the tenant disagrees, either party can raise a dispute with the deposit scheme (DPS, MyDeposits, or TDS). An independent adjudicator reviews the evidence and makes a binding decision.

What you can deduct for

• Damage beyond fair wear and tear: Holes in walls, broken fixtures, stained carpets (beyond normal use)
• Missing items: If furnished, items listed on the inventory that are no longer present
• Cleaning: If the property was returned significantly dirtier than it was received
• Unpaid rent: Including any rent owed for the notice period
• Unpaid bills: If the tenancy agreement makes the tenant liable

What you cannot deduct for

• Fair wear and tear: Scuff marks on walls, worn carpet in high-traffic areas, faded curtains — these are normal and expected
• Pre-existing damage: Anything present before the tenant moved in (unless it's worsened)
• Improvement costs: You can't charge the tenant to upgrade beyond the original condition
• Betterment: If you replace a 10-year-old carpet because of a stain, you can only claim a proportion of the cost, not the full replacement

Evidence that wins

• Detailed check-in inventory with dated photos: This is the single most important document. Without it, you have no baseline
• Check-out inventory with dated photos: Taken on the same day the tenant leaves, room by room
• Signed inventory: Having the tenant sign the check-in report eliminates disputes about original condition
• Quotes or invoices: For cleaning, repairs, or replacements you're claiming for
• Correspondence: Emails or messages where you raised issues with the tenant

Why landlords lose

• No check-in inventory (fatal — the adjudicator has no baseline to compare)
• Photos without dates or room labels
• Claiming for betterment (replacing a 15-year-old item and billing full cost)
• Claiming for fair wear and tear (adjudicators are experienced at spotting this)
• Late return of the deposit (you should propose deductions within 10 days)

Build your case from day one

Use Tendmere's document vault to store check-in and check-out inventories, inspection photos, and maintenance records against each property. When a tenancy ends, you'll have a timestamped audit trail that stands up to adjudication.