Insured tenant deposit in dispute with no response from tenant?
Hello Everyone, The former tenant is disputing the deductions from his deposit. I need some clarity about what to do with the tenant deposit when it is an insured deposit scheme, as against a custodial one, while waiting for a resolution.
I was finally able to take possession of my property before the renter’s bill comes into law. However, the tenant had damaged the kitchen floor, removed some fixtures and made some unauthorised installation, which I had previously asked to be removed, but it wasn’t.
I got some costings and communicated them to the tenant, who is disputing and requesting to do the work himself via a contractor whom he says is cheaper.
I refused to allow him to re-enter my property and mentioned that he had more than 2 months’ notice to fix the obvious disrepair. I wrote to him that he can raise his dispute vis the Deposit Scheme.
I have been waiting for him to get back to me either via the deposit scheme or to agree on an amount so I can repay the balance of his deposit, but he hasn’t responded to me. I asked for his bank details, but he has refused to send them.
So, my question is: do I keep securing the deposit or end the insured deposit while waiting for a resolution? Especially as the tenancy has ended.
Thank you.
Naomi
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Member Since October 2023 - Comments: 70
10:26 AM, 20th October 2025, About 6 months ago
I would have thought the damage you outline would be more than the deposit but if you have some to return that cant be the case.
Some numbers woukd be heloful because how much was thevdamage, and what is tge difference in yours and his prices?
Since the numbers must be smallish, why not agree to deduct his contractors sum (prividing he provides a written quote from an insured contractor) and still use yours to do the work.
Write off the difference and move on.
If he wont provide bank details you cant make any refund but if it does go to resolution, you have demonstrated you have done everything possible to be reasonable
Member Since February 2018 - Comments: 627
10:36 AM, 20th October 2025, About 6 months ago
The question is what to do with the deposit, simple, nothing. The tenant hasn’t requested the deposit scheme to arbitrate, if they had, the scheme I use requires the refund of any undisputed balance and sending them the rest. You don’t need to ‘continue to insure the deposit’, it already is insured and will now be under continuation
Member Since July 2024 - Comments: 112
3:29 PM, 20th October 2025, About 6 months ago
I have a similar issue. I am going back and forth with a tenant who’s deposit is was Secured by OpenRent.. they do nothing other than prompt us to settle – I think they have to hold the desposit for 3 months as I have an asconded tenant not fighting her deposit and I need to wait 3 months they say for what its not clear. but if this new tenant and I cannot agree then what happens? as they cannot release the deposit I assume unless we agree? not sure what to do if this tenant wont pay up what he owes and we settle and he gets paid the balance.. advice?
Member Since September 2023 - Comments: 1
7:43 PM, 20th October 2025, About 6 months ago
Reply to the comment left by Tim Peters at 20/10/2025 – 10:26
It is actually more but I wrote off some aspects already. I already knew he would dispute it. That is the sort of person he is. He even refused to pay some workmen and they reported it to me but I refused to get involved since it was between them and the tenant.
Member Since October 2023 - Comments: 70
9:15 PM, 20th October 2025, About 6 months ago
Well if heis messing about, dont write off anything…. Claim every penny.
If he hasnt filed a claim, YOU can file one. He probably wont respond as there is nothing in it for him since he wont be getting anything back…. Especially if he thinks he is likely to lose at arbitration.
I guess you then make a statutory declaration (£5 fixed fee at solicitors) and he has 14 days to respond or the money is yours
Either way you force a resolution
Member Since September 2023 - Comments: 157
9:50 AM, 22nd October 2025, About 6 months ago
Contact whoever runs your insured scheme.
Most insured schemes only last 3 months after the end of the tenancy. If the tenant doesn’t request it back, the insurance ends, and the tenant would need to file a small claims court case to get it back, but they’ll need to win to get it, and from the sounds of it,that doesn’t look likely, especially as the tenant has chosen not to use mediation which courts frown upon.
The property needs fixing, if the quotes are reasonable, get the work done, make the relevant deductions and offer to return the remainder when they give you the bank details to do so. If the deposit doesn’t cover the work in full, you can start your own claim against the tenant if it’s worthwhile.
You are under no obligation to let the tenant return and for all they know you might have already relet or sold the property, so it’s not viable.