Your deposit is your money. It's only fair that you want to know what happens to it when you move out.
Moving out is stressful enough without having to worry about your deposit too.
These are some questions you might have:
They're all fair questions. And quite often, the worry comes from simply not knowing what happens next.
At 1Let, we manage deposits through SafeDeposits Scotland, one of Scotland's approved tenancy deposit schemes. Your deposit is protected through the scheme, and when your tenancy ends, there's a process for dealing with the repayment.
Here's what happens.
What is a tenancy deposit?
SafeDeposits Scotland describes a tenancy deposit as “a sum of money paid as security to guarantee a tenant's obligations under a lease.”
Put simply, it's there to cover certain costs you're responsible for as a tenant. That could be unpaid rent, damage or cleaning costs, depending on what's happened during the tenancy.
Your deposit is there as security for the tenancy. It isn't simply money the landlord can keep.
If there's nothing that needs to be paid from it at the end of your tenancy, you should get it back.
If we believe something is your responsibility, we'll explain what we've found and why. You'll also have the chance to respond.
Where is my deposit held?
In Scotland, tenancy deposits have to be protected through an approved tenancy deposit scheme. At 1Let, we use SafeDeposits Scotland.
We don't hold your deposit ourselves. It's protected through the scheme, which also provides a process for dealing with disagreements about deductions.
You'll receive confirmation when your deposit has been registered.
If you've lost your SafeDeposits Scotland details, you can contact the scheme directly for help.
What happens when you move out?
When you tell us you're leaving, we'll send you our move-out information. This covers what you need to do before you hand the keys back.
Once you've moved out and returned the keys, we'll carry out an end of tenancy inspection.
We'll compare the property with the inventory from when you moved in. This is one of the reasons we put so much importance on having a good inventory in the first place.
If you haven't already read our blog Your Inventory Report: What to Check and Why It Matters, it's worth a look.
The inventory records what the property was like when you moved in, including photographs, furniture and fittings, the condition of the rooms and the standard of cleanliness.
And it works both ways. If there was a mark on a wall or damage to something before you moved in, the inventory can help show that it wasn't caused by you.
Does every difference mean money will be taken from my deposit?
Not at all.
A property is going to look a bit different after you've lived in it for a year or two. That's normal. Carpets get worn, paint gets marked and things generally show signs of being used.
That's fair wear and tear.
It's not the same as damage, and we have to take it into account when we look at the property at the end of your tenancy.
We're not walking around looking for everything that's changed so we can charge you for it.
We're looking at what has changed, why it has changed, how old the item is and whether it's something you're actually responsible for.
If an old carpet is simply worn because it's old, for example, we wouldn't expect you to pay for a brand-new carpet.
What happens if we think there should be a deduction?
Sometimes we'll find something during the inspection that we believe you're responsible for. If that happens, we'll explain what we've found and what we're proposing to deduct.
You may not agree with us, and that's okay. You may also look at what we've raised and agree that the deduction is reasonable. Either way, we'll explain what we've found and give you the opportunity to respond.
You might have information we haven't seen, such as:
- photographs from the beginning of your tenancy
- an email showing that you reported a problem
- evidence that something was already damaged
- proof that a repair was carried out during your tenancy
- or something else you think we should know about
Send it over and we'll look at it.
If there's something you think we've missed, we'd rather you told us so we can look at it again.
What if I don't agree with the deduction?
You don't have to accept a deduction just because we've proposed it. But equally, you don't need to disagree with it simply because it's a deduction.
If you've looked at what we've raised and think it's reasonable, it's perfectly okay to agree to it. If you genuinely think we've got something wrong, or there's information we've missed, tell us why.
The important thing is that you understand what's being proposed and have the opportunity to consider it properly.
Sometimes a conversation and a bit more information are enough to clear something up.
If you and the landlord still can't agree, SafeDeposits Scotland provides a self-resolution process. This gives both sides the opportunity to try to reach an agreement before the dispute goes to an independent adjudicator.
We think that's a good thing. Not every disagreement needs to become a formal dispute. Sometimes both sides just need the opportunity to explain their position, look at the information properly and consider whether there is a sensible way forward.
If you still can't reach an agreement through self-resolution, the dispute can move on to SafeDeposits Scotland's independent dispute resolution process.
Both sides can provide evidence, such as:
- the original inventory
- the end-of-tenancy report
- photographs
- emails and other correspondence
- repair records
- invoices or other relevant documents
An independent adjudicator will then consider the evidence and decide how the deposit should be divided.
What does “fair” mean when it comes to deductions?
This is where things can get a bit more complicated.
Take a carpet. If it's been in the property for several years and is damaged during your tenancy, it wouldn't be fair to simply charge you the full cost of a brand-new carpet.
The age and condition of the original carpet matter.
The same goes for furniture, decoration, appliances and other items.
You might hear the term “betterment” used here. It basically means that a landlord shouldn't be financially better off because something has had to be replaced after being damaged.
So it's not just a case of looking at the price of a replacement and passing that cost on to the tenant.
The question is what's reasonable in the circumstances.
What if the problem wasn't my fault?
Not everything that goes wrong in a property is down to the tenant.
An appliance might stop working. There could be a leak. Something might have been damaged before you moved in. Or it could simply be normal wear and tear.
If something goes wrong during your tenancy, tell us.
Even if you're not sure whether it's your responsibility, ask. We'd much rather you checked than spent weeks worrying about whether you've done something wrong.
You're a person before you're a tenant
This is something we think is important to say.
We know that people don't all come to the end of a tenancy with the same experiences or expectations.
Maybe you've had a bad experience with a deposit return in the past. Maybe you've had a deduction you didn't understand. Maybe you've rented for years and never really known what happens when you hand the keys back.
We understand that a deposit can mean different things to different people, and that can affect how you feel when a deduction is proposed.
We don't walk into an end of tenancy inspection looking for ways to take money from you. That's not the point of the deposit, and it's not how we want to work.
If we think something is your responsibility, we'll explain what we've found and why. We'll look at the inventory, the condition of the property, the age of the item and the circumstances around what has happened.
And if you don't agree, we'll listen.
We won't always agree with you, and you won't always agree with us. That's okay. What matters is that you're given a fair chance to explain your side and that we look at the evidence properly.
And if, after looking at the evidence, you agree that something is your responsibility, that's okay too. We don't see that as a failure on either side.
We're managing the property for our client, but that doesn't mean the tenant's experience doesn't matter.
At the end of the day, we're dealing with people. We think you deserve to be treated with respect, listened to and dealt with fairly.
What happens to my deposit after the inspection?
Once the inspection is complete, we'll submit the deposit repayment through SafeDeposits Scotland.
If there are no deductions, your deposit can be returned in full.
If we're proposing deductions, you'll be told what they are and what happens next.
Don't ignore the correspondence from SafeDeposits Scotland
This is an easy one to overlook when you're in the middle of moving.
When SafeDeposits Scotland contacts you, read it and deal with it.
If you agree with the proposed repayment, confirm it through the scheme.
If you don't agree, follow their instructions and make sure you respond within the timeframe they've given you.
Don't leave it until the last minute.
What if I think my deposit has been handled unfairly?
If something doesn't feel right, talk to us.
You don't have to assume that we've got everything right, but you also don't need to disagree with something simply because we've proposed it.
You might have information we haven't seen. We might have information you haven't seen either. The important thing is that both sides have the opportunity to look at the evidence and explain their position.
We'll consider the evidence, take fair wear and tear into account, and listen if you think we've missed something.
If you look at the evidence and agree that a deduction is reasonable, that's fine too. The aim isn't for either side to “win”. It's to reach a fair outcome based on the facts.
If we can resolve the issue between us, that's usually the simplest outcome.
If we can't, SafeDeposits Scotland's self-resolution and independent dispute resolution processes are there to give both sides a further way forward.
There are safeguards in place for both sides.
Want to give yourself the best chance of getting your deposit back in full?
There are a few things you can do before you hand back the keys that can make things much easier.
In our next tenant blog, we'll look at How to Avoid Deposit Deductions.
We'll cover the things that are easy to overlook when you're moving out, from cleaning and appliances to keys, furniture, gardens and all those little jobs that tend to get forgotten when you're trying to get everything done at once.
A note about this article
This article is general guidance for tenants renting in Scotland and isn't legal advice. Your tenancy agreement and individual circumstances will always be relevant.
For the latest information about tenancy deposits, we recommend checking the guidance from SafeDeposits Scotland and the Scottish Government.
