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Deposit deductions letter template

A deposit deductions letter is what a landlord or letting agent sends a tenant at the end of a tenancy in England to propose deductions from the deposit and return the balance. It sets out each deduction with the evidence and how it was worked out, and asks the tenant to agree or dispute it. The property, the deposit, the deductions and the scheme are different each time.

Made by DocuWeave. Use at your own discretion.

What changes each time

22 values. Everything else is your wording, kept exactly.

Who is writing and to whom

  • Landlord's or agent's name, address, email and phone
  • Date of the letter
  • Tenant's name or all joint tenants' names
  • Forwarding address or email

The tenancy

  • Property address
  • Tenancy end date
  • Date keys returned
  • Length of tenancy
  • Check-in report date
  • Check-out date

The deposit

  • Deposit amount
  • Deposit scheme name
  • Scheme reference
  • Custodial or insured scheme

Deductions and balance

  • Deductions: item, room, condition at check-in, condition at check-out, amount, how worked out, evidence
  • Total deductions
  • Unpaid rent included
  • Balance to be returned

Reply and next steps

  • Reply date
  • Days to repay under an insured scheme
  • Scheme's dispute deadline
  • Contact name, role, phone and email

The rules it usually needs

Written in plain English when the template is set up.

  • One of several wordings

    “Say the deposit is custodial and held by the scheme, or insured and held by the landlord or agent.”

    Only the chosen description appears.

  • One of several wordings

    “Describe repayment after agreement as made by the scheme within 10 days, or by the landlord or agent within a stated number of days up to 10.”

    Only the chosen repayment route appears.

  • One of several wordings

    “If the tenant does not reply, either ask the scheme to begin its process for unanswered claims, or contact the tenant again first.”

    Only the chosen step appears.

  • Only when…

    “Include the unpaid rent line only when there is unpaid rent.”

    The amount is written in and refers to the attached rent statement.

  • Only when…

    “Include the right to ask the scheme to step in only for an insured scheme.”

    It applies where the deposit has not been repaid within 10 days of a request.

  • Only when…

    “Include the link to the evidence only when it is available online.”

    The link is written in beside the list of attached copies.

  • Once for each item

    “One row in the deductions table for each deduction.”

    Three deductions give three rows, each with the item, room, the condition at both ends, the amount, the basis and the evidence.

Questions people ask

Can a landlord deduct from a deposit for any damage?

Deductions are for things the tenant is responsible for under the tenancy, such as damage, cleaning or unpaid rent. Fair wear and tear cannot be deducted.

What evidence should support a deduction?

The inventory and check-in report, the check-out report, dated photos, quotes or invoices, and the rent statement for any unpaid rent.

How quickly must a deposit be returned?

Once the landlord and tenant agree the amount, the scheme or landlord must repay it within 10 days under the rules for custodial and insured schemes.

What if the tenant disagrees?

Either side can use the deposit scheme's free dispute resolution service, which looks at the evidence from both sides. The undisputed amount should be returned straight away.

Does the tenant have to agree to deductions?

No. The letter proposes them. If the tenant disagrees, the dispute can go to the scheme.

Use this template

It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.