The RENTERS REFORM BILL will revoke your mandatory right to claim possession of your property. This means problem Tenants will be afforded greater protection PIMS NEW GUIDE court application for a Section 21 your mandatory right as is now

How to Handle Tenant Deposit Disputes Fairly (and Legally)

Posted : 11/08/2025 | By Alice Davies

Disputes over deposits are one of the most common conflicts between landlords and tenants. Here’s how to stay on the right side of the law while protecting your property.


Image credit: iStock

The Law on Deposits

Landlords must protect deposits in a Government-approved scheme (TDS, DPS, or MyDeposits) within 30 days. Failure to do so can result in fines and limit your ability to serve a Section 21 notice.

Common Causes of Disputes

  • Cleaning issues at move-out

  • Unpaid rent

  • Damage beyond fair wear and tear

  • Missing items from the inventory

How to Avoid Disputes

  • Use a detailed inventory with photos at check-in and check-out.

  • Communicate clearly about expectations for cleanliness and repairs.

  • Be reasonable—normal wear and tear isn’t chargeable.

If a Dispute Arises

  • Submit evidence (photos, invoices, emails) to the deposit scheme.

  • Independent adjudicators will review both sides.

  • The decision is binding—avoiding costly court battles.

📌 Takeaway: Good records and fairness are your best defence. Treat tenants fairly, and you’ll reduce disputes.