Negotiating on deposits

If you paid your deposit before 6 April 2007, and you think your landlord is keeping it unfairly, the first step is to try to negotiate with her/him.

Negotiation isn't guaranteed to always work but you should try it before you consider any further action. If you need help, contact a local advice centre.

Get all your paperwork together

Get together all of the paperwork you have relating to your deposit and any evidence of the condition of the property when you moved in. This can be helpful if you have to negotiate with your landlord later. Useful items might include:

• the inventory
• any photographs you took when you moved in
• receipts for items you have replaced
• receipts or estimates for repairs done to the property
• receipts for rent payments
• letters from and to your landlord (eg about repairs or replacement items).

These may also be useful later, if you need to go to court to get the deposit back.

Write to the landlord

The first step is to write and ask your landlord to return your deposit. Your letter should ask why your deposit is being kept,  and what specific costs are being taken out of your deposit. Ask for an explanation and a breakdown of specific expenses.

You may find our first sample letter helpful.

Give your landlord a deadline for replying (such as within two weeks). Keep a copy of the letter.

Your landlord may reply with a list of the deductions from your deposit rather than returning it. Look at these and see whether you agree with them. If you don't agree with some or all of the costs you will need to write again.

If your landlord doesn't respond to your letter at all, you should write again once the deadline has passed (see below).

Write a second letter

You will need to write to your landlord again if:

• s/he hasn't responded to your first letter
• you disagree with any of the costs s/he is deducting from your deposit
• you agree with some, but not all of the deductions.

You can download and adapt our second sample letter. 

Your letter should set out clearly:

• which costs (if any) you do not accept
• the reasons why you do not accept them
• the amount of money you think should be returned to you.

Give your landlord a deadline for a second reply (such as within two weeks). In your letter warn that you will take your landlord to court if your deposit is not returned by this date.

If you don't get a reply or are not happy with it

If you don't get a reply or your landlord still won't give you the money, you can try to get it back by taking her/him to court. This is quite straightforward, so you won't need a solicitor. You may not even have to go to a court hearing at all - your landlord may pay up once s/he knows you are considering this action.

Before you do this, however, you should send a formal 'letter before action' with a completed copy of the relevant court form (form N1, which you can download from the Court Service website). 

If your deposit is held by a letting agent

If you rented through a letting agent and they hold your deposit, they do so on behalf of your landlord. If they are unfairly refusing to return your deposit, or the company stops trading and disappears with your money, you should contact your landlord directly. S/he is responsible for returning your deposit even if you originally paid it to the agency.

You are entitled to know the name and address of your landlord. Your letting agent has a legal duty to provide this information within 21 days, if you request it in writing. Get advice if you need help with this.

If your letting agent behaves unreasonably and is registered with a regulatory organisation, you can contact that body to report the problem. The National Approved Lettings Scheme and the Association of Residential Letting Agents are the two main regulatory bodies for letting agencies.

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