This means that at the end of the tenancy you can deduct money from the security deposit for items the tenant is liable for. This can include rent arrears, cost of repairs for damage caused by the tenant, and costs of cleaning for items that are beyond normal wear and tear. If a tenant believes they are not liable for any costs, legal action can be taken against you as landlord.

The tenancy agreement can also specify any other condition for return of the security deposit, for example, the return of keys or for specific maintenance and repair items. It is important to have a clear understanding about exactly what the deposit represents and what conditions have to be filled for the deposit to be returned to the tenant at the end of the tenancy.

January 2006