How to handle a TDS deposit dispute as a landlord

How does a TDS dispute start?

How it starts depends on whether TDS holds the deposit (TDS Custodial) or you or your agent hold it and TDS insures it (TDS Insured). Your deposit protection certificate says which.

TDS Custodial. TDS doesn’t act when a tenancy ends. You, your agent or the lead tenant start it by asking TDS to repay the deposit. Before you do, the custodial scheme rules (rule 8.4) expect you to tell the tenant in writing what you want to deduct and why. TDS then gives the other side 30 working days to agree, partly agree or disagree. If they disagree, TDS asks both of you whether you consent to its dispute service. If they don’t reply at all after 15 working days, there is a separate route using a statutory declaration.

TDS Insured. A dispute can be raised from 10 days to 3 months after the tenancy ends (insured ADR rules, rule 4.1). When it is, you send the amount in dispute to TDS, and you pay the tenant any part that isn’t disputed yourself, promptly.

In both, TDS first gives you a chance to settle between you. It sends cases back to that stage until both sides have shown they’ve tried.

Do both sides have to agree to use TDS’s dispute service?

Yes. The service is free, and each side pays only its own costs of preparing, but neither of you has to use it. That is the law, not just TDS’s policy: the Housing Act 2004 says a scheme can’t make it compulsory.

If either of you refuses, the money stays protected until there’s a court order or you agree. TDS expects to see court proceedings started or an agreement within 3 months, or it may repay the other side. In an insured case, TDS can treat silence as consent if it’s satisfied you received its request.

Unlike court, it costs nothing, and the adjudicator works only from the papers, so it rewards the side that prepares them well.

How long do I have to send TDS my evidence?

TDS gives you 5 working days from its invitation to submit your evidence, for custodial and insured deposits alike. The tenant then has 5 working days to respond. These come from the rule editions in force since 1 May 2026 (custodial ADR rules 5.1 and 6.1, insured ADR rules 4.10). Older documents still online say 10 working days: they were replaced.

Working days leave out weekends and bank holidays in England and Wales, so the deadline can land later than a week. Our free evidence deadline calculator counts them for you. If you need more time, ask TDS before the deadline: an extension is at its discretion (custodial rule 6.8).

What evidence does a TDS adjudicator expect?

The adjudicator decides on the papers. Nobody visits the property, and there’s no hearing. TDS’s own guidance and the joint guide the three schemes publish list the same core evidence:

• The tenancy agreement, signed. It sets out what the tenant agreed to, and each deduction should point to a clause.
• The check-in inventory. It carries most weight when an independent clerk made it, with dated photos, and the tenant signed it. If you made it yourself, show the tenant had it and could comment.
• The check-out report, done soon after the keys came back, ideally with the tenant invited. Use the same descriptions as at check-in so the two compare item by item.
• Dated photos or video that match the reports. End-of-tenancy photos help only if there are start-of-tenancy photos of the same thing.
• Invoices, quotes and receipts for each cost. Itemised invoices count for more than quotes, but you don’t have to have done the work before you claim.
• A rent statement for any arrears, showing what was due, what was paid and the balance.
• Correspondence where it matters, such as the tenant agreeing to the inventory or being told about arrears.

Two rules catch landlords out. TDS doesn’t chase evidence you say is “available on request” (custodial ADR rule 2.12): if it isn’t uploaded, it isn’t considered. And the tenant sees everything you submit.

How should I set out my claim?

TDS’s guide How to present your case to a TDS adjudicator is specific, and it is worth following closely:

1. Break the claim into TDS’s headings: cleaning, damage, redecoration, gardening, rent arrears and other.
2. Under each, list every item with its own amount, so the subtotals add up to the claim.
3. For each item, say why you are entitled to it, citing the tenancy clause.
4. Point to the evidence precisely: the page of the check-in and check-out reports, the photo numbers, and the time in a video.
5. Where you are asking the tenant to pay part of a cost, show the sum. TDS’s own example: a carpet that should have lasted 10 years is ruined with 4 years of its life left, so the claim is 4/10 of the £500 to replace it, £200.
6. Say what should happen to the rest of the deposit.

Leave out opinion, comments about the tenant’s character and long email chains. “See enclosed estimates” isn’t an explanation: the adjudicator won’t work it out for you.

How does TDS treat fair wear and tear?

The adjudicator allows for fair wear and tear and won’t give you the full cost of a new item to replace an old one. Awards reflect the item’s age and quality, how long the tenancy lasted and how many people lived there, and you can’t end up better off than at the start (custodial ADR rules 3.6–3.7, insured 3.7–3.8).

In practice that means claiming a share of the cost, worked out from the item’s age and expected life. Our guide to fair wear and tear explains how, with the schemes’ own lifespan figures.

What happens after the evidence is in?

Once both deadlines pass, a member of TDS’s resolution team reviews the case. They may ask a question, ask for a missing document or try once more to help you agree. Then an adjudicator is assigned.

TDS aims to decide within 15 working days of the case reaching the adjudicator. Its own FAQ says a whole dispute can take up to 16 weeks from acceptance. For a custodial deposit, TDS pays out within 2 working days of the decision (custodial scheme rule 10.3).

Can I claim more than the deposit?

No award can be more than the amount in dispute (custodial ADR rule 3.4, insured 2.7). Still list every cost with its evidence, even if the total is more than the deposit. Don’t round your claim down to fit. Anything above the deposit can only be recovered through the courts, as a separate claim.

Once the evidence deadline passes you can’t add new items, so put everything in the first time.

Can I challenge a TDS decision?

The decision is final and binding on both sides. TDS will review one only if you can show a clear error of fact or law, and you have 28 calendar days from the decision to send its review form. Disagreeing with how the adjudicator weighed the evidence isn’t enough. Beyond that, the only route is the courts.

Does this apply in Wales?

TDS protects deposits in England and Wales, and its dispute process works the same way in both. The law around deposits differs, though: this guide describes England. In Wales, deposits fall under the Renting Homes (Wales) Act 2016.