Tenant Deposit Deduction Letter Generator
Itemise proposed deposit deductions, total them against the deposit held, and generate a printable letter explaining the balance due.
Deposit Details
Deduction Items
Letter Details
Scenario Analysis: If A Dispute Reduces Deductions
| Deductions Upheld | Total Deductions | Balance Due To Tenant |
|---|
Illustrative only. An ADR adjudicator could uphold all, some, or none of the proposed deductions.
Itemised Breakdown
| Item | Category | Raw Amount | Wear & Tear Adj. | Adjusted Amount |
|---|---|---|---|---|
| Enter deduction items to see the breakdown. | ||||
What Is A Deposit Deduction Letter?
A deposit deduction letter sets out, item by item, what a landlord proposes to deduct from a tenant's deposit at the end of a tenancy, and what balance will be returned.
How Is The Balance Worked Out?
Each item's amount is adjusted for any fair wear and tear percentage, the adjusted amounts are totalled, and that total is subtracted from the deposit held to give the balance due back to the tenant.
Who Is This For?
Landlords and letting agents preparing an end-of-tenancy deposit breakdown, and tenants wanting to check that a proposed deduction adds up correctly.
Common Mistakes
Common mistakes include charging full replacement cost without a wear-and-tear adjustment, not itemising deductions clearly, and not keeping evidence to support each item.
What Evidence Supports A Deduction?
If a protected-deposit dispute goes to adjudication, the burden of proof sits with the landlord, and the decision is made on paper — the adjudicator only sees what you send. The strongest package is a signed check-in inventory and a matching check-out report, dated photographs of each item you are claiming for, invoices or at least two quotes for the remedial work, and the tenancy agreement clause the deduction relies on. Without a check-in inventory there is usually no baseline to compare against, and claims commonly fail for that reason alone. Gather the evidence before you send the letter, and reference it item by item — a deduction the tenant can see is properly evidenced is far more likely to be accepted without a dispute at all.
What Happens Next?
Send the itemised letter to the tenant with supporting evidence. If the tenant disagrees, and the deposit is protected in a scheme, either side can use that scheme's free dispute resolution service.
Important Considerations
A shortfall where deductions exceed the deposit is not automatically recovered; it would need to be pursued separately. Always keep the deposit protected in a government-authorised scheme throughout the tenancy.
Frequently Asked Questions
What is a deposit deduction letter?
It is a written breakdown a landlord sends a tenant at the end of a tenancy, itemising any proposed deductions from the deposit before releasing the balance.
How is the balance due to the tenant worked out?
The total deposit held minus the total of all itemised deductions, floored at zero.
What if deductions exceed the deposit?
The shortfall is shown separately. It is not automatically recovered from the deposit; the landlord would need to pursue the tenant separately with evidence.
What is the wear-and-tear adjustment?
It reduces an item's raw cost to reflect fair wear and tear, so the deduction does not amount to betterment for an older or already-worn item.
What evidence should support a deduction?
Check-in and check-out reports, dated photos, invoices, quotes and receipts all help support a proposed deduction.
What happens if the tenant disagrees?
If the landlord and tenant cannot agree, deposits protected in a custodial or insured scheme go through that scheme's free Alternative Dispute Resolution (ADR) service.
Can I include rent arrears as a deduction?
Yes, rent arrears can be one of the itemised categories, but arrears beyond the deposit amount need a separate repayment discussion.
Is there a time limit to propose deductions?
There is no single fixed deadline, but deposit scheme rules expect deductions to be raised and resolved promptly after the tenancy ends.
Does this tool verify my evidence?
No. It totals the figures you enter and drafts the letter. You are responsible for gathering and keeping the supporting evidence.
Can a tenant use this tool?
Yes. Tenants can use it to check whether a landlord's proposed deductions add up correctly before responding.
What deposit schemes operate in England and Wales?
The Tenancy Deposit Scheme (TDS), mydeposits and the Deposit Protection Service (DPS) are the three government-authorised schemes.
Should cleaning costs be itemised separately?
Yes, itemising cleaning, damage, arrears and other categories separately makes the breakdown clearer and easier for the tenant to check.
Can I edit the generated letter?
Yes. Copy the letter and adjust the wording before sending if needed.
Is this legal advice?
No. This tool drafts an itemised letter and totals the figures entered. It is not legal advice.
Where can I read more about deposit rules?
GOV.UK, TDS and mydeposits all publish guidance on deposit protection and the dispute process.
Sources
- GOV.UK: tenancy deposit protection
- GOV.UK: if there's a dispute about your deposit
- TDS: dispute resolution
Last updated: 2026-07-06. This page gives an estimate and drafting tool only and is not legal, tax, financial, or employment advice.