Are deposit schemes fair to landlords?

Are deposit schemes fair to landlords?

Blue piggy bank and house model with coin stacks symbolizing landlord deposit disputes
12:01 AM, 30th September 2025, 6 months ago 23

Having used one of the government-backed deposit schemes for many years, I have recently been exposed to the unfairness of the system by the one I use (I won’t name them here). I am interested in other landlords’ experiences of using the government schemes and if there are any schemes that give landlords a fairer hearing.

My focus is when there is a dispute over any claims against the deposit when the tenancy is over due to damage, poor hygiene, poor garden maintenance and smell.

My experience of using the Adjudicator is that they always side with the tenants, no matter what compelling evidence a landlord submits and will always give the tenant the benefit of the doubt. The system is stacked against the landlords as the tenant is allowed to comment on any landlord evidence, and as they input their testimony last, the landlord cannot comment on the tenant’s version of events, which is normally a pack of lies.

Damage to walls, doors, electrical fittings, carpets, kitchen units etc is difficult to prove unless you have taken 100s of photos at the start of the tenancy and if you are lucky, you may have photographed the damaged area; if you haven’t, the tenants claim it was there on Day 1. The Adjudicator just puts many of these issues down to fair wear and tear. The cleanliness of the property/ tidiness of the garden at the start and end of tenancy is another subjective area which an Adjudicator will ignore if the tenant has said the property was spotless and the garden tidy.

I have a landlord friend whose tenants damaged the gas boiler by continually over-pressuring the system. He had his plumber write an expert report summarising the damage to the boiler by the tenants but this was discounted by the Adjudicator as the plumber was not independent enough!

Pet smell is one of those areas that can be subjective. I do not have dogs, but I can identify the presence of a dog in a house as soon as the door is opened, but owners are nose blind and will refute that there is a doggy smell in the house. It is very hard to prove there was no dog smell before the tenancy started, and the only way to remove it is by extensive carpet shampooing, if you are lucky, or by replacing any carpets.

I have taken to employing an inventory company that produces a report at the start of the tenancy that contains 300+ photos to try and capture the condition and smell, of the property at the start of the tenancy at a cost of about £70. I have not had to use these reports yet in any Adjudication, but time will tell. They will no doubt be accused of not being independent as well!

Thanks for reading,

Mike


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Comments

  • Member Since July 2013 - Comments: 357

    1:16 PM, 5th October 2025, About 6 months ago

    Let’s face it the deposit is far to small to cover damage never mind rent arrears.

    Trades cost a lot £500 deposit it anywhere near enough

  • Member Since December 2023 - Comments: 31

    2:55 PM, 5th October 2025, About 6 months ago

    After a bad experience I now only use the insured schemes, not the custodial ones. It means that if the tenant disagrees with the deduction they have to make a complaint to the deposit scheme or take it to court. You can refuse the arbitration from the deposit scheme meaning they have to take it to court (but can’t accept the arbitration and then ignore the judgement).

    The bad experience was that I had unpaid rent after a tenant left. It should have been easy, but the deposit scheme needed the tenant to agree the rent was unpaid or wait a significant length of time (some months) then get a solicitor produced affidavit statement from me to say it was not paid. Of course the tenant just ignored the requests. If I’d used the insured scheme it would have been easy.

    By comparison a tenant recently moved out and had damaged paint after being in the property for 18 months. They also left the property in an awful state of cleanliness. It had been fully redecorated and cleaned just before they moved in. I deducted 18% of the redecorating costs to take into account fair wear and tear and an 8 year redecorating lifetime and the cost of a professional clean. The tenant initially said they thought that was unreasonable, but then once they’d vented their frustration they accepted it.

    Of course, your inventory should include a photo of every wall/carpet/ceiling and the outside. And also you need a maintenance log to show how old everything is. Otherwise if they do push it, you haven’t a leg to stand on and any judge or mediator will just say you can’t prove it’s tenant damage or anything other than fair wear and tear.

  • Member Since June 2014 - Comments: 1562

    3:03 PM, 5th October 2025, About 6 months ago

    “You can refuse the arbitration from the deposit scheme meaning they have to take it to court”

    That’s not correct, if the landlord refuses arbitration, they have to take it to court.

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