.
It is worth a reminder that the deposit is the tenant's money.
It is not the landlord's "repair pot" or to dip in and out of throughout the tenancy. It should remain completely untouched and returned to the tenant at the end of the tenancy, in full, unless you have genuine reductions and receipts to prove work done to return the property to the condition the tenant took it in.
In the event of a deposit dispute, without an inventory & schedule of condition from check in and check out, it is very unlikely that the landlord would win. This is because the deposit is the tenant's money, and the onus is on the landlord to provide proof of damage or excessive wear and tear to justify deductions.
Best practice dictates that the tenant's deposit is registered with one of the government approved schemes, which can be insurance backed or custodial. It must be registered within 30 days of the start of the tenancy and returned within 10 days of the end of the tenancy.
The tenant must be given the deposit registration number, details of the scheme, and preferably a copy of the scheme's leaflet.
along with:
the address of the rented property
how much deposit has been paid
how the deposit is protected
the name and contact details of the TDP scheme and its dispute resolution service
Landlord (or the letting agency’s) name and contact details
how to apply to get the deposit back
what to do if there’s a dispute over the deposit
There is increasing pressure on landlords and lettings agents to raise standards and tick a lot of boxes, and this is going to continue into 2013. Tenancy deposit protection is one area coming under intense scrutiny, so make sure you understand your obligations.
If you do not follow the correct procedure, you have no hope of winning a deposit dispute.
House Critter recommends the following related discussions:
Important ruling about deposit protection that all landlords should be aware of.
Not having an inventory is giving your tenant an unfair advantage.
Video interview from the TDS Workshop