Can you deduct unpaid rent from a tenant’s deposit?

If your tenant has rent arrears, you can use their deposit to cover the unpaid rent.

There should be a clause in the tenancy agreement that states you will make deductions from the deposit in specific circumstances, so ensure that this clause includes rent arrears. If properly documented in the tenancy agreement, the tenant will not be able to dispute this.

All deposits must be protected in a government-approached deposit protection scheme. You are required as a landlord to provide the tenant with the information of the scheme that their deposit is protected in. Any disputes can be mediated through the deposit protection scheme.

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