Deposit Deductions - Is it Fair?

What is and is not allowed to be deducted from student deposits.

Many students will go through their university life without having to deal with an unfair deposit deduction. However, too many of you deal with this problem every year. Some landlords misunderstand what is a valid reason for a deposit deduction. We want you to be ready to defend your money if you ever have to deal with an unfair deduction.

The Law- What’s Allowed

Deposit law is notorious for being ambiguous. What is fair wear and tear? What counts as indirect damage due to negligence? How can you disprove that the mark on the wall was because you didn’t take reasonable care? We’re here to help answer your questions.

Let’s start with the easy stuff:

Unpaid Bills and/or Rent

This one is pretty obvious. If you or anyone in your house has outstanding rent your landlord can deduct this from your deposit.
If you haven’t paid off your bills, for example, electricity and your landlord is left with the bill they can deduct the amount from your deposit.

Missing items that belong to the landlord

If you accidentally take something that was the landlord’s your landlord can reclaim the cost from your deposit.
However, if you still have the item, you can organise a time to return it.
This happens more easily than you’d think. I was living with someone who accidentally took the bin from their room thinking it was theirs. We returned it and got our deposit returned in full.

Cleaning costs

If you leave your house in a worse condition than when you received it, your landlord can deduct money for cleaning.
Students often lose money on this one.
The best way to protect yourself is to take pictures when you move in and when you leave the property.
You should also make sure that your landlord goes around the house with you at the end of the tenancy to check that they are satisfied with the state of the house. Ask them are they satisfied, are there any issues?
Follow up with an email to thank them and confirm that no issues were raised.
If something was raised and you accept the issue, you should list the items and costs.

Unwanted belongings

If you leave anything at the property your landlord can deduct the cost of removal.
However, you are allowed to organise a pick-up to be arranged with the landlord promptly. This will protect your deposit and stop you from losing money.
Your landlord may have to store it somewhere which can incur costs. This would be deducted from your deposit. You need to consider this in making your decision on whether you should collect your belongings or have them disposed of.

Onto some of the harder to define deductions:

Direct damage

Examples of direct damage include cigarette burns, holes in walls from hanging pictures or a broken chair.
Your landlord must have proof that the damage occurred during your tenancy.
For example, if there is a cigarette burn on a carpet your landlord must have proof that the burn wasn’t there when you started as well as proof that it is there now. You will be able to rely on the before and after photographic evidence.
To protect yourself you should take photos of every room and every area of damage at the start of your tenancy. For more information on this check out our Moving In post.

Indirect damage

One of the more common forms of indirect damage is the build-up of mould due to you not keeping the property well ventilated.
Unfortunately, mould is very common in student properties even if the property is well ventilated. Often recurring mould is because it wasn’t properly treated the first time it appeared. Anti-mould paints only deal with the surface problem of mould and there is often a larger problem behind the wall.
Most landlords will be fair on this matter and as long as you report it when it first appears, they will deal with it at their cost. However, it is technically your problem. Unless it is caused by a leaky pipe or structural defects.
To protect yourself you should keep a record of when your first report the issue and your landlord’s response. The best way to create a record is by sending an email to your landlord about everything that was discussed and agreed upon.
Another example of indirect damage may be water damage from leaving the window open during heavy rain.

The Law - What isn’t allowed

Your landlord is responsible for the maintenance of structural elements and utility systems. For more information on your and their responsibilities consult our blog on Assured Shorthold Tenancy Contracts here.

They are responsible for:

Maintenance of fixtures and fittings that are used for the supply of water, gas, electricity, heating and sanitation.

This includes, but is not limited to, sinks, baths, toilets, central heating, boilers and essential electrical appliances.
For example, if your dishwasher breaks it is your landlord’s responsibility unless you do something to it that causes it to break.
This applies to all appliances that come with the property.
If your landlord wants to deduct money from your deposit for appliances not working, they must prove that you have done something to stop it working.
An example of you causing an appliance to break is accidentally smashing the oven door.
However, if the fridge stops working by itself it is their responsibility. It is your responsibility to report it and you should at the earliest opportunity.

Maintenance of the structure of the building

This includes walls, ceilings, the roof, gutters, drains and external pipes.
An example of this is a crack appearing in the wall due to the building moving over the years.
Or a gutter falling after a storm.

Fair Wear and Tear

Wear and tear- Wear and tear is the damage or change that is caused to something being used normally.

Fair wear and tear is more important in longer tenancies (more than 5 years). However, you should be aware of it in case something breaks during your tenancy due to wear and tear.

If something breaks always report it as soon as possible to your landlord.

If you believe something broke because it is old, and your landlord is deducting money from your deposit for its replacement you should collect as much of the following information as possible:

Type of item and its projected life span.
Type of damage and the item’s material.
Age of item and tenancy length.
Brand and manufacturer specifications.
Documented state in the move-in inventory.

This what will be considered by the deposit adjudicator. With fair wear and tear you may still be required to pay for some of the damage. It is at the discretion of the adjudicator once they have independently verified all the information from both parties.

You will be in a much better position to demonstrate something broke due to fair wear and tear if you have completed our inventory checklist. Detailed inventories when moving in can protect you against so many issues when it comes to deposit deductions. It is the single best way to protect your deposit from unfair deductions and we cannot recommend it enough.

I can personally vouch for this. In 2019 my landlord wanted to deduct around £600 for cleaning. I had taken photos of every room in the house when we moved in. Including 3 specific photos of areas that hadn’t been cleaned. All the evidence was submitted to the adjudicator and we had our full deposit returned because of just 3 photos. So, remember always take photos!

Have you ever had an unfair deposit deduction? Let us know how you handled it in the comments below!