Forum spotlight: Returning the deposit when tenants split

A landlord posted on our forum a question around returning a tenancy deposit to their tenants.

The tenants had split up, which is why they had ended the tenancy. The landlord wanted to know whether the returned deposit needed to go to the lead tenant, or be split 50/50.

They took to our forum to ask for the advice of fellow landlords.

The responses on the forum

The first landlord to share their opinion on the thread suggested the deposit should simply be paid back to the person who paid it. That way, the landlord can leave the tenants to sort out whether it needs to be split 50/50.

The second user to post recommended the landlord take a look at the terms in the tenancy agreement or other documents to double -check if anything was stipulated around how the return of the deposit would be managed.

They said that if there is no agreement signed then its the landlord's decision, but to communiate everything in writing with the tenants.

Our advice

An advisor from the NRLA's dedicated landlord support team then joined the thread. They said that because the couple have signed a joint contract, just as they are both equally liable for the rent, they are equal recipients of the deposit.

If the deposit is held in a custodial scheme, the scheme will apportion the deposit according to the tenants' wishes.

If the landlord holds the deposit and the tenants want the distribution of the deposit to be anything other than 50/50, then they as the landlord would be better off asking both tenants to agree to this in writing and provide their respective bank account details.