Damage to the Property
What happens if items have been damaged?
Where damage (dilapidation) has occurred and these can be agreed between the parties, estimates should be obtained for repairs/replacements. The Tenant should be informed of all the costs in writing and amounts of deductions from the deposit clearly shown.
all costs involved for additional payments. Where the Tenant is insured, this evidence should be provided for the insurance company.
Where items need to be replaced, betterment may be involved. This means that the original age and condition of the replaced item should be taken into account, and the landlord should be prepared to accept less than the full replacement cost of the item.
What if the parties cannot agree on deductions to the deposit?
If the parties cannot reach agreement as to which items have been damaged, the severity of the damage or dilapidation, the repair or replacement costs etc, then great care should be taken in:
Disputes over these matters may eventually need to be solved through arbitration usually managed by the Tenant Dispute Service or the Small Claims Court.
IMPORTANT - DID YOU FAIL TO PROTECT THE DEPOSIT
If you did not register the deposit (taken in respect of ANY Tenancy/renewal after April 2007) and you simply left the money in your BANK then you have no lawful right to deduct monies.
Whilst there is case law (Gladehurst Properties Ltd v Hashemi ) a Tenant cannot sue for three times compensation, once the Tenancy has been ended. In this case the Landlord had returned the monies.
You could take the risk of keeping the money but not adviced for legislation being introduced this year could open the door to litigation and fines