How to get your deposit back

A few months ago, I moved out of my old apartment. Moving is stressful for everyone. Packing, finding a new place, moving boxes, unpacking, sorting and decorating are all necessary steps. Retrieving your deposit is, however, one of the most important steps. Unfortunately, what should be a simple task too often turns out to be Mission Impossible.

Retrieving my deposit was not easy. The landlord came up with some creative ideas to fix a few things in the apartment at my expense. Needless to say that the real estate agency was completely complicit in an attempt to maintain a good relationship (and business) with the landlord. Not all landlords are bad. I just had a bad experience and I acknowledge that. Having said that, it is important to know how to act in those unfortunate situations.

Let’s also be fair: if you caused damage to the property beyond simple wear and tear, then you should compensate the landlord. The idea is not to cheat the landlord or game the system. For all other cases, you should get your deposit back.

If the landlord is not being fair, then you need to fight back and build your case. After all, the deposit is yours and it’s hard earned cash. Do not leave money on the table!

1. Gather the key documentation

Prior to moving out, make sure that you have gathered any document that you might require to build a case. Those include at a minimum:

• The lease agreement, including all schedules;
• The inventory check made at the beginning of the tenancy;
• Any supplemental forms provided by the landlord or the agency such as prescribed information leaflets, deposit protection certificate etc.

At the time of your exit, there will be a new inventory check made. This is especially important as the landlord will use this inventory check to show that you have caused damages. Ideally, you should be present when the inventory is made. This will limit the chances of having an unscrupulous clerk exaggerating defects for the benefit of the landlord.

Tip: to show that you mean business, take pictures of the condition of the apartment while the clerk is conducting the inventory check. It is still your apartment at that time and you are entitled to gather proof. The clerk will know that you have pictures to counter any inconsistencies in his report.

Once you have moved out, the clerk will draft the report within a week or so. You should receive a copy of that inventory report. If the landlord or agency do not volunteer to send you a copy of the report, chase them.

 

What happened to me: I had the lease agreement but I had never received an electronic copy of the inventory check. When I realized this, I immediately emailed the agency, which was after I moved out. They provided me with the relevant documents. Now, I safely keep those stored in a file should I ever need them. I was lucky that the documents were provided by the agency: had they refused, I could not have challenged certain deductions.

 

2. Be fair and recognize if you damaged the property

An important step to save time and money is to assess the situation. When the inventory check is conducted, you will know if you left the property in good conditions. It is important to differentiate two types of damages:

• Wear and tear: wear and tear is damage caused by the repeated usage of the property. In other words, this is damage that naturally occurs as a result of the usage and aging of the property. For instance, it is typical to have more wear and tear if a family of four lives in the apartment compared to a single occupant. With kids, those white walls stand less of a chance to stay immaculate! The landlord cannot make any deductions to your deposit to fix wear and tear issues.
• Other types of damages: if you decided to hang pictures and made holes in all the walls, then you will need to fix this. If you don’t do it, then the landlord will at your expense. The list could go on forever.

Being realistic and honest about how you left the property is a much more efficient way to deal with the situation. The landlord may not give you back all your deposit but that’s only fair as you damaged the property. If you are at fault (and did not fix the issue prior to the inventory check), try to be upfront and reach an amicable settlement. It will still cost you money but saving time and anxiety is invaluable.

Of course, if you genuinely believe that you left the property in stellar conditions with only minimal wear and tear, you should get your deposit back.

 

What happened to me: I expected deductions regarding certain unsettled utility bills (one remained outstanding at it had just been issued while the other one would only be available at the end of the quarter). As a single occupant, I knew that the apartment was left in excellent conditions. I had also paid for professional cleaners and replaced all light bulbs. I was therefore shocked to see many deductions for items (damaged chair, chipped wall, stains in the bathroom near the sink).

 

3. Email the landlord or agency to claim your deposit

Once you have handed over the keys and concluded the inventory check, the next step is to claim back your deposit.

The easiest way is to send an email to the landlord or agency. In the email, mention that you have given back the keys, that the inventory check has been concluded and that you would like your deposit back. Request additional information on how and when they intend to transfer the monies to you.

Typically, the email will either be ignored until the inventory check has been received or you will receive a response stating that nothing can be done while the landlord has not signed off on the inventory check.

This is fine. The purpose of the email is to ensure that the clock starts ticking. The email – your request to retrieve your deposit – will start a 10-day period during which the landlord must respond to your request. Making such a request also happens to be a requirement by major deposit schemes (and you will need proof that you made such a request). For example, on My Deposits, the tenant must ask for the deposit back and the landlord/agent has 10 days to respond before the tenant can raise a dispute with the scheme administrator. Without this, the tenant cannot initiate a claim.

Claim early so that this period starts running. By doing so, you will be in a position to raise a dispute straight away instead of waiting for a new 10-day period to lapse.

 

What happened to me: I made the mistake of waiting around and not immediately claiming my deposit. I had simply assumed that the landlord or agency would be proactive, which was a mistake. It took them over two weeks to come up with the first batch of proposed deductions! Eventually, I formally requested the deposit back. The delay was not detrimental to me as I was in no rush and did not need the money. It was however poor planning and I will be much quicker next time.

 

4. Check the proposed deductions and negotiate with the landlord

There are two possibilities at this stage. The first one is the landlord accepts the inventory check and surrenders the deposit in full (or with minor deductions, which you agree with). The second possibility is the landlord starts to make unwarranted deductions, which significantly reduces your chances to recover the deposit.

The landlord or agency will send you a copy of the proposed deductions. The most efficient way to deal with those is to go over each proposed deduction line by line. If you have a solid reason to challenge the deduction, then list it next to that line-item. Repeat the process until you are done.

There are a couple of ways to challenge deductions:

• Check the inventory check when you entered the premises: if the damage already existed when you moved in, you should not have to pay for it;
• Check the inventory check when you moved out: there may be inconsistencies or gaps in the report. Pull up the pictures you took and determine how accurate the report is. If there is a mistake in the report, then the deduction is unwarranted;
• Claim wear and tear: some landlords will want to repaint a room claiming you damaged the painting in one corner of the room. Unless there is a hole in the wall, it probably is simple wear and tear. In theory, it will be up to the landlord to demonstrate that this is not the case. In practice, this can be difficult, the outcome will depend on the facts, and the evidence presented.
• Say no: if you disagree but don’t have supportive evidence, you can always say no. This will block the process and prevent the landlord from moving forward. The landlord has the advantage of holding the deposit but eventually, landlords are not in the business to litigate. They will want to close the case and move on to the next tenant who might even pay more rent.

Prescribed Information: under the Housing Act 2004, when a landlord, or their agent, protects a tenant’s deposit with an approved Tenancy Deposit Protection Scheme, they are required to provide to the tenant specific information regarding the protection of the deposit, known as the Prescribed Information. Failure to do so can result in penalties amounting three times the deposit amount. If you have not been provided the Prescribed Information, this could be a good argument to incentivize the landlord to settle the dispute.

Negotiate with the landlord to reach an acceptable settlement. If this does not work, then litigation is the next (and final) step.

 

What happened to me: I went through every single deduction and was able to prove that the chipped wall was already mentioned in the original inventory check. I pushed back on the stains in the bathroom stating that this was standard wear and tear and knowing that the landlord would have difficulties proving otherwise. As for the scratch on the chair, the landlord wanted to charge me over £90 to fix it! I first refused and then offered half of the amount to settle the claim.

 

5. Take legal action

There are two ways to litigate: either litigate through the adjudication process provided by the deposit protection schemes or sue the landlord in small claims court (for claims below £10,000).

Raising a dispute through the deposit protection scheme is quite simple and works like a private court case. Instead of a judge, you will have impartial adjudicators who will review the evidence submitted by you and the landlord. To be effective, both the tenant and the landlord must agree to use this alternative dispute resolution mechanism. If either the tenant or the landlord refuses to be a party, you cannot use the service and the only option left is legal action in court. If both parties accept to participate in this adjudication process, the adjudicator’s decision is final with no right of appeal. It essentially is an alternative to the use of courts. The hope is to settle claims quickly and reduce the workload of the courts.

If everything fails, then you must resort to legal action. You will need to send a letter before action to the landlord’s home address as a last warning. If the landlord refuses to engage or discuss the deductions any further, then it is time to file the claim form and pay the initial court fees.

If you are looking for letter templates, have a look at the Shelter’s website.

What happened to me: the landlord did not accept my arguments very easily. She claimed that the chipped wall was not properly documented in the inventory check and that there should have been a picture (the inventory check was perfectly clear). She also resisted the wear and tear argument and insisted on the full amount for the chair. In the end, I issued a letter before action to her home address. As a lawyer, I was quite comfortable going to court and was therefore eager to avoid the dispute resolution mechanism provided by the scheme. She then settled, accepted my offer on the chair and gave me the deposit back (minus deductions for the utility bills). This process took over three months.