<p>Suzy Hershman, Resolution Department Lead</p>
While there are alternative products on the market, taking a security deposit from the tenant is still the most common practice. It protects landlords and letting agents from any action or omission by the tenant that causes loss.This may be due to the tenant not maintaining the property for the duration of the term or not paying all their rent.By law, the deposit belongs to the tenant, who is entitled to a full refund unless the landlord can evidence that they have a claim for costs.If you need to propose deductions from the deposit and, despite your best efforts at negotiation, cannot agree a successful resolution with the tenant, you may need to use an alternative dispute resolution (ADR) service.This guide can help landlords and letting agents understand how to approach a formal dispute, explaining the circumstances under which a claim can be made and what is required to support any deductions at the end of the tenancy.
For more information, read ‘conditions of deposit disputes’ on our website.