How to Settle Tenant Deposits Fairly at Move-Out

The deposit is often the last money exchanged in a tenancy, and the most likely to cause an argument. Good records make it simple.

Before the tenant arrives

• Record the deposit amount and how it was paid
• Note the condition of the unit with dated photos
• Make sure the lease explains how deposits are treated

At move-out: three steps

1. Apply to unpaid bills. Clear any outstanding rent and utilities first, and show the tenant the statement.
2. Deduct only documented damage. Itemise each deduction with a reason, and compare with the move-in photos. Normal wear and tear is not usually damage; check your lease and take advice if unsure.
3. Refund the balance. Record the method and reference so both sides can prove it was paid.

Keep the ledger honest

The amount held should always equal the sum of recorded movements: collected, applied, deducted, refunded. Never adjust a single total by hand.

Oxflare's deposit ledger follows exactly these steps. See Leases & Deposits.