A landlord can deduct from a tenancy deposit for damage beyond fair wear and tear, missing items, cleaning back to the check-in standard and unpaid rent. Each deduction has to be shown by comparing the check-in and check-out records, and has to reflect the age of the item, not the cost of a brand-new one. Once you and the tenant agree the amount, the deposit must be returned within 10 days. If you can’t agree, the deposit scheme’s free dispute service decides. This guide covers how to run the check-out, tell fair wear and tear from damage, and work out deductions that stand up to an adjudicator. It’s written for landlords in England.
What’s changed in 2026
On 1 May 2026, assured periodic tenancies replaced assured shorthold tenancies in England under the Renters’ Rights Act 2025. Tenancies no longer have a fixed end date, so check-out happens when the tenant gives notice or the tenancy ends on a valid ground. A tenancy could run for many years, which makes a detailed check-in record and dated photos from mid-tenancy inspections even more important.
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The core deposit rules still apply: the deposit must be protected in a government-approved scheme within 30 days of receiving it. An unprotected deposit can also now stop you getting a possession order on most grounds.
What you can and can’t deduct for
You can usually claim for:
- Damage beyond fair wear and tear, such as burns, breakages, holes and stains
- Missing items listed on the check-in inventory
- Cleaning, where the property isn’t returned as clean as it was at check-in
- Unpaid rent and other breaches the tenancy agreement covers, such as an overgrown garden the tenant agreed to keep
You can’t claim for:
- Fair wear and tear
- Upgrades, or new-for-old replacement of an item that was already part-worn (called betterment)
- Anything you can’t evidence from your check-in and check-out records
What counts as fair wear and tear
Fair wear and tear is the deterioration that comes from normal use and ageing. When deciding what’s fair, the deposit schemes look at:
- How long the tenancy lasted. Five years of living leaves more wear than six months.
- Who lived there. A family with young children will wear a carpet faster than a single professional.
- The age and quality of the item at the start of the tenancy
- Its condition at check-in, from your inventory
| Usually fair wear and tear | Usually chargeable |
|---|---|
| Carpet flattened in walkways | Burns, rips, large stains or pet damage |
| Faded paint, light scuffs and a few small picture-hook holes | Unauthorised redecoration, large holes or crayon on walls |
| Loose door handle or worn hinges | Broken door or a damaged lock |
| Minor wear to worktops from normal use | Burn marks or deep knife cuts |
| Sun-faded curtains | Missing or torn curtains |
Cleaning is treated differently. Fair wear and tear doesn’t apply to dirt, so the tenant should return the property as clean as it was at the start, however long they lived there. You can’t charge for a professional clean if the property wasn’t professionally cleaned at check-in.
How to work out a fair deduction
The fairest deduction is usually the lowest of these three:
- The cost to repair (if the item can be repaired)
- The cost to replace, apportioned for age (if it can’t)
- Compensation for loss of value (for minor damage that doesn’t need fixing now)
Worked example 1: carpet
A lounge carpet cost £800 to fit. You have the invoice showing it was 3 years old at check-out, and you reasonably expect it to last 8 years. The tenant burned a hole in it, and it can’t be patched.
- Remaining life: 8 − 3 = 5 years
- Apportioned claim: £800 × 5/8 = £500
Claiming the full £800 would leave you with a new carpet partly paid for by the tenant. That’s betterment, and an adjudicator is likely to reduce it.
Worked example 2: redecorating
The tenant painted the lounge dark purple without permission. It was redecorated 4 years ago, and you expect paintwork to last about 5 years. Repainting will cost £400.
- Remaining life: 5 − 4 = 1 year
- Apportioned claim: £400 × 1/5 = £80
Your evidence of age and cost matters. Keep invoices for carpets, appliances, furniture and decorating, and record the age and replacement cost of items on your inventory. Our Rental Property Inventory has a replacement cost column for exactly this.
How to do the check-out, step by step
- Use the check-in inventory. Work through the same document, in the same room order, so you compare like with like. If you need to build one first, see our landlord check-in inventory checklist.
- Record the check-out condition beside the check-in condition for every item, using the same plain words (Good, Fair, Poor, Damaged, Missing).
- Take dated photos from the same angles as the check-in photos, with the same reference numbers.
- Read the meters and count the keys, and note anything not returned.
- Invite the tenant to attend and sign, or send them a copy straight away.
- List any proposed deductions in writing. For each one, say what the problem is, show the check-in and check-out evidence, and give the cost with a quote, invoice or receipt and your apportionment.
- Agree the amount and repay promptly. The deposit must be returned within 10 days of you both agreeing how much the tenant gets back.
- If you can’t agree, the disputed amount stays protected in the scheme. The scheme’s dispute resolution service is free, but both sides must agree to use it, and the decision is final. Schemes set time limits for raising a dispute, so check yours.
An easy way to keep on top of it
The Rental Property Inventory is an Excel and Google Sheets workbook that puts check-in and check-out side by side, so your evidence is ready if you need to claim.
- Inventory: 100 lines across 10 room areas, with separate check-in and check-out condition dropdowns, cleanliness and replacement cost.
- Attention flags: items marked Poor, Damaged or Missing at check-out are flagged automatically, and the Dashboard shows the total replacement value at risk.
- Photo Evidence: a P01–P100 reference for each line, with space for check-in and check-out photos.
- Handover & Meters: electricity, gas and water readings, keys issued and returned at both stages, and a sign-off section. It’s a one-off purchase, with no subscription.
See the Rental Property Inventory →
Deposit deduction FAQs
How long does a landlord have to return a deposit?
The deposit must be returned within 10 days of you and the tenant agreeing how much will be paid back. If there’s a dispute, the amount in question stays protected in the scheme until it’s settled.
Can a landlord charge for cleaning after a tenancy?
Yes, if the property isn’t as clean as it was at check-in. The claim should only bring it back to that standard. You can’t charge for a professional clean if it wasn’t professionally cleaned when the tenant moved in.
Can a landlord charge for repainting?
Only for damage or unauthorised changes beyond normal wear, and only for the remaining life of the decoration. Faded paint and light scuffs after a long tenancy are usually fair wear and tear.
Who decides if there’s a dispute?
If both sides agree to use it, an independent adjudicator at the deposit scheme decides, based on the evidence. That’s why a detailed, dated inventory with photos matters so much.
This guide is general information for landlords in England, based on GOV.UK and deposit scheme guidance as of October 2026. It isn’t legal advice. Rules differ in Wales, Scotland and Northern Ireland and can change, so check GOV.UK, your deposit scheme or a letting professional for your situation.
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