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Cleaning, damage and unpaid rent – When can you legally deduct from a tenant’s deposit?

For landlords, disputes can arise with tenants at the end of a tenancy when it comes to deductions from their deposit.

According to the English Private Landlord Survey (EPLS), most landlords returned the deposit in full (59 per cent) or in part (22 per cent) at the end of the most recent tenancy.

However, around one in seven (15 per cent) said they had not returned any of the deposit, often citing damage, cleaning, or rent arrears.

With disputes over deposit deductions being one of the most common sources of conflict between landlords and tenants, you need to know exactly where the law stands.

Making the wrong call can lead to costly disputes, strained landlord-tenant relationships, and even legal action.

What the law says about tenancy deposits

Under the Housing Act 2004 (the Act), landlords in England are legally required to protect a tenant’s deposit in a Government-approved tenancy deposit protection (TDP) scheme.

These schemes are in place to ensure the fair handling of deposits, and they offer free dispute resolution services if disagreements arise.

To lawfully make deductions from a deposit, landlords must provide evidence to justify the costs.

Without sufficient proof, a tenant can challenge the deduction.

Cleaning – What is fair and what is not

Cleaning is one of the most commonly cited reasons for deductions.

According to the EPLS, 59 per cent of landlords who withheld part of the deposit said it was to clean the property for the next tenant.

Landlords cannot charge a tenant to return the property to a better condition than it was in at the start of the tenancy.

You can only expect the property to be returned in the same state of cleanliness (excluding reasonable wear and tear). For example:

Permitted deduction – The property was professionally cleaned at the start but left in poor condition at the end.
Not permitted – The property was only lightly cleaned at the start, but the landlord expects a professional clean at the end.

Always document the initial and final condition with inventory reports and photos.

Damage to the property or contents

Sixty-three per cent of landlords who made deductions cited damage to the property or its contents. This is legally acceptable, but only if the damage goes beyond fair wear and tear.

Fair wear and tear accounts for normal use and ageing. Examples of acceptable deductions include:

Broken appliances due to misuse
Stains or burns on carpets
Holes in walls from picture hooks
Broken furniture (not due to age)

Not acceptable:

Faded curtains
Worn carpets
Chipped paint from long-term occupation

Again, evidence is key. You will need check-in and check-out inventories, dated photographs, and ideally receipts or estimates for repairs.

Unpaid rent

About 31 per cent of landlords said they deducted from the deposit due to unpaid rent.

This is legally valid, but it must be handled correctly.

If rent is outstanding at the end of the tenancy, the deposit can be used to cover it, provided this is documented in the tenancy agreement.

Make sure you:

Ensure all rent arrears are itemised and backed by a rent statement
Notify the tenant of the intended deduction and the amount
Are prepared to justify this through the deposit scheme’s resolution service if challenged

Many disputes arise simply due to a lack of communication or insufficient evidence. To minimise risk:

Always provide a detailed tenancy agreement that sets out deposit terms
Use professional inventory clerks where possible
Keep all receipts and invoices for cleaning or repairs
Communicate with your tenant before making deductions; many disputes can be resolved informally

We specialise in resolving landlord-tenant disputes and advising landlords on their legal obligations.

Contact us today for expert legal advice.