A foreword from the adjudicator
Suzy Hershman, Resolution Department Lead
While there are alternative products on the market, taking a security deposit from the tenant is still the most common practice. It encourages tenants to look after the property and protects landlords and letting agents from any action by the tenant that breaks the terms of the tenancy agreement.By law, the deposit belongs to the tenant, who is entitled to a full refund unless the landlord can evidence to prove they are entitled to compensation. This may be due to the tenant not maintaining the property during the tenancy, causing damage or not paying all their rent.If you need to propose settlements from the deposit and, despite your best efforts, negotiation is unsuccessful, you may need to use a formal resolution service.This guide can help landlords and letting agents understand how to prepare for negotiation or a formal resolution, explaining the circumstances under which a settlement can be requested and what is required to support any proposed settlements at the end of the tenancy.
For more information see our ‘conditions of deposit disputes’ on our website.