Can I claim unpaid rent from the deposit?

Can I take unpaid rent out of the deposit?

Yes. A tenancy deposit is security for the tenant’s obligations under the tenancy (Housing Act 2004, section 212), and paying rent is the main one. TDS lists rent arrears among the reasonable deductions (TDS). The law also names unpaid rent as a sum a landlord can claim through a custodial scheme when the tenant can’t be contacted or doesn’t reply (Schedule 10, paragraph 4A).

Rent arrears are a common deduction. They were the reason for 16.5% of DPS deposit claims in 2025, after cleaning and damage (DPS).

Do I need a deposit use clause?

It matters more than landlords expect. TDS says that if there is no deposit use clause, it is unlikely the adjudicator will make an award to the landlord (TDS). Its advice on rent is to make sure the tenancy agreement clearly says the deposit can be used for it (TDS).

Check your agreement before you propose the deduction. Then quote the clause, by number, when you write to your tenant and in your evidence.

When can I use the deposit for rent?

At the end of the tenancy. Write to your tenant promptly with each deduction and its amount (TDS). Once you both agree, the deposit must be returned within 10 days (GOV.UK). If you can’t agree, it stays protected until the dispute is settled.

Using the deposit for rent while the tenancy is running is different. It needs your tenant’s agreement, and TDS warns that automatically using the deposit against rent can cause problems for landlords (TDS). A deposit spent on rent leaves nothing for cleaning or damage at the end.

The same applies when a tenant asks to treat the deposit as the last month’s rent. You don’t have to agree. TDS points out that once the deposit has been agreed against rent, there is nothing left for its dispute service to decide (TDS).

What evidence do I need for rent arrears?

The tenancy agreement and a full statement of the rent account. Those are the two documents the schemes’ joint guide says must be provided (joint guide). DPS also calls the rent account statement important for any claim involving arrears (DPS).

Bank statements alone aren’t as compelling as a full rent account statement (joint guide). A clear statement shows:

1. the property and the tenant it relates to
2. each rent due date and amount, from the tenancy agreement
3. each payment received, with its date
4. the running balance, up to the date the tenancy ended

It also helps to show you told your tenant about the arrears, ideally by sending them the statement, and gave them a chance to comment (joint guide).

How is rent for part of a month worked out?

TDS works out rent for part of a month as the monthly rent × 12 ÷ 365 × the number of days owed, rounded to two decimal places. Its example is rent of £485 a month and 19 days owed, which comes to £302.96 (TDS).

Show the sum in your statement, so the adjudicator (the scheme’s impartial decision-maker) can check it line by line.

How much rent is owed when the tenancy ends?

Rent is owed up to the date the tenancy ends. Since 1 May 2026, most tenancies in England are assured periodic tenancies. A tenant ends one with two months’ written notice, given on the rent due day or the day before, and has to keep paying rent during the notice period (GOV.UK). You and your tenant can agree a shorter notice period in writing.

When the end date itself is in question, for example after a tenant left without notice, the answer depends on the facts. A solicitor or Citizens Advice can help with that part.

What if the arrears are more than the deposit?

The scheme can’t award the balance. An adjudicator can award no more than the deposit, though you can still put the full amount in your claim (TDS). mydeposits says the same for its service (mydeposits).

Deposits are capped, so larger arrears often exceed them. In England, the cap is five weeks’ rent where the annual rent is under £50,000 (Tenant Fees Act 2019, Schedule 1). It is six weeks’ rent where the annual rent is between £50,000 and £100,000 (GOV.UK).

Anything above the deposit can be claimed through the county court, online or by post (GOV.UK). GOV.UK suggests a mediation service can be quicker and cheaper than going to court.

Can I add a late rent charge?

Only if your tenancy agreement provides for one, and only within the Tenant Fees Act’s limits in England. The rent must be unpaid for 14 days. The charge can be no more than 3% a year above the Bank of England base rate, worked out daily on the unpaid rent (Schedule 1, paragraph 4). Show it as a separate line from the arrears, with the calculation.

Is it the same in Wales?

The schemes treat rent arrears the same way in both countries. The law around deposits differs. In Wales, the payments a landlord can require are listed in the Renting Homes (Fees etc.) (Wales) Act 2019, Schedule 1. That list covers rent, a security deposit and payments in default. The Tenant Fees Act 2019 doesn’t apply in Wales.

Where next?

Check the deposit use clause, prepare the rent account statement, and propose the deduction in writing as soon as the tenancy ends. The page on what you can deduct covers cleaning and damage alongside the rent, and the evidence deadline calculator works out when your evidence is due. If your tenant disputes it, a deposit dispute pack sets the rent statement and the clause beside each deduction for the adjudicator.