Tenancy Deposit Dispute Process: Guide for North London Landlords

When a tenancy comes to an end, landlords often face the daunting prospect of a tenancy deposit dispute. The checking out inspection conducted by the landlord or agent commonly uncovers issues such as damage to doors and walls, stains in carpets and pet damage.

In many cases the tenants will take accountability and agree that costs for repairs and cleaning can be deducted from their tenancy deposit. However, not all tenants are prepared to part with their money without challenging it and this can lead to a dispute.

Even tenants who came with great references and have otherwise been good tenants throughout the tenancy may now debate their responsibility for any damages caused.

Resolving the issue swiftly will help to minimise void periods if there are any major damages to repair. If you have property in areas in Kensal Rise, Queens Park or Cricklewood, you’ll want to make sure that prospective tenants viewing the property see it at its best to meet their expectations.

To help you to navigate a tenancy deposit dispute, this guide outlines the procedure to follow to avoid unnecessary costs, delays and frustrations.

What’s The Tenancy Deposit Scheme Dispute Procedure?

The Tenancy Deposit Scheme was set up by the government not only to provide more protection for tenants but also to assist with dispute resolution. Landlords are required to put their tenant’s deposit into an approved tenancy deposit protection scheme and this includes an impartial free dispute resolution service.

So, if you find yourself in the position where you want to withhold money from the deposit for repairs or cleaning required for damage caused by more than normal wear and tear, and your tenant disputes it, these are the steps to follow:

1. Reach out to your deposit protection scheme provider

As soon as you are aware that the tenant is contesting responsibility for paying for the damage out of the tenancy deposit, you should get in touch with the provider. Each provider has slightly different processes to follow, so when you contact them, they will be able to guide you through the correct steps to raise deposit disputes.

2. Follow their specific process

Deposit Protection Service – Go to depositprotection.com and log in to the service using the details provided when you set up an account. You will then be able to submit a dispute, upload evidence and await their review. Both parties have 14 calendar days from the submission date to submit their evidence.

MyDeposits – Go to mydeposits.co.uk and log in. Click on “Submit a dispute” and you will need to enter your Deposit Protection Certificate number and click “Go.” You will now be able to enter the details and upload evidence. Both parties have 10 working days to submit evidence and then the evidence will be reviewed.

Tenancy Deposit Scheme – Go to tenancydepositscheme.com and log in to your account. To submit a dispute, you will need your certificate code and you can upload your evidence online.

3. Submit your dispute evidence

The quality and legibility of evidence to support your claim can provide can have a big influence on the outcome, so be as comprehensive as possible with the evidence you submit and make sure to include all of the following:

• The tenancy agreement
• Inventory reports
• Photos or videos of the property (make sure they are in the required file format)
• Receipts for cleaning or repairs
• Any correspondence between tenant and landlord about the dispute.

4. Wait for the scheme to make a verdict

Once your evidence has been submitted, the review process will take no longer than 28 days as each provider must meet this deadline. A report will then be sent to both the tenant and landlord detailing their decision and instructions on how the deposit should be repaid.

5. You return the deposit – or withhold it

The landlord then returns any deposit to the tenant and withholds the specified sum instructed by the adjudicator (if applicable).

6. Pursue legal action (if necessary)

While an impartial dispute service will resolve many cases, if one party disagrees with the outcome, either party can escalate the case to court. However, in many cases, the outcome of the dispute resolution service will stand and there will be court fees to pay, which is currently £377 for using a Form N208.

At what point can you claim back the deposit?

Landlords have 10 days from the end of their tenancy to make tenants aware of any proposed deductions. If the tenant disagrees with the proposal, the landlord can then submit a dispute claim and the deposit will be held until the independent adjudicator provides their report.

This process involves allowing time for evidence to be submitted (14 calendar days or 10 working days depending on the scheme) and then 28 days for the review. Once the report has been sent to the tenant and landlord, the landlord can claim back deposit as outlined in the report.

How to protect yourself in the tenancy deposit dispute process

Going through a dispute is not the way anyone wants to end a tenancy, either as a tenant or a landlord. However, landlords can prepare for this eventuality by doing the following:

• Create a thorough inventory at the start of the tenancy. Take photos and videos to show as much detail of the condition of the property as possible. Store the files in a secure folder on your computer.
• Look after your property and make sure that any maintenance work is completed in a timely manner.
• Conduct regular inspections, preferably with the tenant present so any issues can be discussed rather than only coming to light at the end of the tenancy.
• Keep track of communications with tenants and store emails, text messages etc. In case you need them as evidence.
• Take photos and videos at the end of the tenancy and where damage is identified, record detailed descriptions, including date and possible cause.

Dealing with tenancy deposit disputes is never easy but landlords can use the expertise of lettings agents to handle these processes. Find out how to navigate all aspects of life as a landlord with our guides on landlord repair obligations, rent increases and selling a house with sitting tenants. If you’re a London landlord in Kilburn, Willesden Green or Neasden, please get in touch if you’d like to hear about how we can help.