Checkout, deposit deductions and evidence

The checkout process determines what — if anything — can be deducted from a tenant’s deposit. England landlords must compare the property’s condition at checkout against the check-in inventory, account for fair wear and tear, and provide supporting evidence for any deductions they propose. Reviewed March 2026.

What the rule is

Tenancy deposit scheme rules require landlords to return deposits promptly (within 10 days of agreeing the amount) and to provide written evidence supporting any deductions. If the tenant disputes deductions, the scheme’s alternative dispute resolution (ADR) service adjudicates based on the evidence submitted. The burden of proof is on the landlord.

When it applies

• At the end of every tenancy where a deposit was taken
• When a tenant leaves before the end of a fixed term (if deposit deductions arise)
• Partial returns can be agreed mid-tenancy in some circumstances

What landlords must do

• Conduct a checkout inspection, ideally with the tenant present, on or close to the move-out date
• Compare the checkout condition room by room against the check-in inventory
• Photograph all areas of damage or concern, dated
• Obtain quotes or invoices for any repair, cleaning, or replacement work
• Account for fair wear and tear — do not deduct for normal deterioration during the tenancy
• Propose deductions in writing with evidence and a clear breakdown
• Return the undisputed portion of the deposit within 10 days of reaching agreement
• If disputed, use the scheme’s ADR service rather than withholding the whole deposit

What is fair wear and tear?

Fair wear and tear means the reasonable deterioration of the property and its contents through normal use over time. You cannot deduct for:

• Small scuffs and marks on walls after a long tenancy
• Carpet fading or thinning with age
• Slight fading of paintwork
• Minor scratches on wooden floors

You can deduct for:

• Large holes in walls, deep stains
• Burns or significant damage to carpets
• Broken furniture or fittings (not from age)
• Professional cleaning where the property was left in a poor state

The length of the tenancy matters — more wear and tear is expected over 3 years than 3 months.

What evidence to keep

• Dated checkout photos (room by room, mirroring the check-in inventory layout)
• Check-in vs checkout comparison document
• Cleaning invoices (if professional cleaning was required)
• Repair quotes or invoices with itemised costs
• Any written communication with the tenant about the proposed deductions
• Evidence of the property’s condition throughout the tenancy (inspection reports)

Common mistakes

• No check-in inventory to compare against — without a check-in record, no deductions can be justified
• Deducting for wear and tear — adjudicators routinely reject deductions for normal deterioration
• Using inflated quotes — support deductions with competitive quotes or actual invoices; one contractor’s high estimate is not enough
• Withholding the entire deposit pending negotiation — return the undisputed portion promptly; withholding it all risks a court order
• Not accounting for the tenant’s length of stay — a 3-year tenancy justifies more wear and tear allowance than a 6-month tenancy

FAQ

How quickly must I return the deposit? The undisputed portion should be returned within 10 days of reaching agreement. Do not wait for the full dispute to resolve before returning what is agreed.

What if the tenant disputes every deduction? Raise a dispute with the tenancy deposit scheme’s ADR service. Submit all your evidence — the adjudicator will decide based on what’s provided.

Can I deduct for professional cleaning if the property wasn’t left clean? Yes, provided you have evidence (dated checkout photos, an inventory showing clean condition at check-in, and a cleaning invoice). The deduction must reflect the actual cost of cleaning.

What if the damage exceeds the deposit amount? You can pursue the balance through the county court as a separate money claim. The ADR only deals with the deposit amount.