5 ways to avoid deposit disputes this summer

Summer is a busy time for landlords, the end of tenancy season brings a whole lot of moving in and moving out, especially with students wrapping up their courses and families relocating during the school holidays. But with all this activity comes the potential for disputes over deposits. The good news is, with a bit of preparation and communication, you can avoid the common issues that cause headaches later on. Here, the Tenancy Deposit Scheme explains how!

1. Set clear expectations from the start

One of the best ways to avoid deposit disputes is to get the rules clear from the beginning. If your tenants know exactly what’s expected of them when it’s time to move out, they’re less likely to leave things in a state that’ll spark disagreements. Start by discussing the key aspects of move-out at the start of the tenancy, and reinforce these expectations with a move-out checklist a few weeks before their departure. You’d be surprised how much confusion can be avoided by simply laying everything out clearly.

TDS Tip: Provide tenants with a move-out checklist a few weeks before they leave. Include cleaning expectations, things like lawn mowing or fixing any damage, and a reminder to return the property in the same condition it was in at check-in (fair wear and tear excluded). Clear guidelines can prevent a lot of confusion, especially around cleaning and garden maintenance. The clearer you are upfront, the less likely tenants are to feel surprised at the end of their tenancy when they’re faced with cleaning, repairs, or maintenance tasks they weren’t expecting.

2. Take clear photos and keep your inventory updated

A picture is worth a thousand words, especially when it comes to deposit disputes! Keeping a thorough inventory at the start and taking photos of everything from the carpets to the outside spaces can save you from disputes later down the line.

TDS Tip: A thorough inventory, along with photo evidence, is essential for a smooth end-of-tenancy process. Here’s how to do one properly:

• Create a detailed inventory: Start by documenting every room in the property, including all furniture, fixtures, and fittings. This inventory should cover everything from the carpets and walls to the condition of kitchen appliances and bathroom fixtures. Include details such as any existing marks, stains, or wear (like scuffs on the walls or slight damage to a couch), which will help later in distinguishing between ‘fair wear and tear’ and ‘damage’.
• Take high-quality, date-stamped photos: For each item and area on your inventory, take clear, date-stamped photos or video footage. Capture not just the major features like furniture but also the smaller details such as floorboards, window sills, and even the condition of the garden. Close-ups of any existing damage (like scratches on furniture or stains on carpets) are particularly important to help differentiate between tenant-caused damage and normal usage.
• Be thorough with the garden and outdoor areas: The garden is a common source of disputes, especially during summer when things like overgrown grass or neglected plants can lead to problems. Make sure to photograph the garden from several angles and highlight any existing issues, such as bare patches on the lawn or damaged garden furniture.
• Get tenants to sign the inventory: Once the inventory and photos are ready, it’s always a good idea to have tenants sign off on it when they move in. This ensures they’re aware of the property’s condition and can’t later argue about things that were already noted.
• Update the inventory during the tenancy if necessary: If any significant changes happen during the tenancy like new furniture, repairs, or improvements, make sure to update the inventory and take new photos. This keeps everything current and ensures you have an accurate record of the property’s condition at the end of the tenancy.

Download our free landlords guide to inventory, check-in and check-out here.

3. Keep communication open

When it’s time for tenants to move out, clear and timely communication is key. This is a busy period for everyone, so checking in with your tenants before the move-out date can help smooth things along and prevent misunderstandings.

TDS Tip: Send a friendly reminder about the move-out date and any final tasks a couple of weeks before they leave. A little heads-up goes a long way, and if they’re running into any issues like cleaning or making repairs, it gives you a chance to sort them out before the big day. The sooner you can catch issues, the easier they are to fix.

4. Stay on top of common summer issues

Summer brings a few specific challenges, like overgrown gardens and missed cleaning. Both are consistently top reasons for deposit disputes, but a little early attention can stop them from becoming a big deal. 

TDS Tip: If your tenants are responsible for the garden, make sure to send a friendly reminder a month before check-out to mow the lawn and trim the bushes. It might seem small, but gardens can quickly get out of hand and it’s always best to give tenants a nudge ahead of time. Also, cleaning is a big one, a lot of disputes happen because tenants don’t realise how deep they need to clean. Provide a checklist for things like carpets, windows, and the oven to make sure they leave things in tip-top shape.

5. Be quick, fair, and transparent about deposit deductions

Once your inspection is done, the next step is to figure out if you need to make any deposit deductions. Being clear and fair about what’s getting deducted - and why - helps avoid any disputes from tenants who feel blindsided.

If you need to deduct money for cleaning, damage, or missing items, be sure to back it up with evidence. Get a quote for cleaning or repairs and share the breakdown with your tenant. For example, “£50 for cleaning the kitchen” or “£30 to repair the damaged bookshelf”, this shows your tenants exactly what they’re paying for. The clearer you are, the easier it is for them to agree to.

TDS Tip: Make sure to return the deposit promptly. By law, you have 10 days to return any agreed deductions, and delays can lead to unnecessary frustration. If you’re still in the middle of negotiations, don’t leave it too long, aim to get any deductions sorted within a few days of the inspection.

By following these tips, you can make your summer check-outs smoother and reduce the risk of disputes. Clear expectations, thorough inventories, and fair communication are the key to a successful move-out season. Remember, the more transparent and proactive you are with your tenants, the fewer headaches you'll have when it comes time to return their deposit.

Not with the Tenancy Deposit Scheme?

Visit our TDS Help Centre to find more guides, tools and templates, all designed to make the life of a landlord easier.  Some of our resources are only available to landlords who use the free deposit protection scheme at TDS Custodial or the insured scheme at TDS Insured. You can access all templates, tools and the full tenancy deposit management dashboard by joining the Tenancy Deposit Scheme.