How to Avoid Rental Deposit Disputes

A smoother exit starts long before move-out day

Rental deposits. Two words that have ended more landlord-tenant relationships than noisy neighbours or broken geysers. But the good news? Most disputes are completely avoidable with a little planning, a touch of clarity, and the right paper trail.

Here's how to keep things clean (and calm) at the end of a lease:

1. Start strong with a proper inspection

Before a single box is unpacked, do a full walkthrough together. Make detailed notes of every mark, scratch, dent, or drip. Better yet, take photos. This isn't nitpicking, it's protection. That scuffed skirting board? If it's logged at the start, no one has to argue about it later. Make sure that both parties sign off on the report and keep a copy.

2. Keep the paper trail alive

Leases don't live in drawers. If damage happens during the tenancy, document it. Fixes, wear, breakages - raise them early and in writing. Tenants should also report maintenance issues promptly. It's about being proactive, not defensive.

3. Know the difference between "used" and "damaged"

Faded curtains, light scuffs, or a few nail holes? That's fair wear and tear. Cigarette burns, cracked tiles, or a door that's come off its hinges? That's damage. Landlords can't charge for ageing gracefully. Tenants can't claim ignorance on breakage.

Read more: Rental Property Inspections

4. Walk out the same way you walked in

Before move-out, schedule a joint inspection and compare it to your original report. This is the time to talk about what's changed and what's chargeable. If things get sticky, document everything and consider a neutral third party before escalating.

5. Don't wing it - get the paperwork right

A good lease is your first line of defense. Make sure it spells out how deposits are handled, what inspections are required, and who's responsible for what. Use a qualified rental agent or attorney. It's worth it.

Whether you're a landlord or a tenant, avoiding deposit drama comes down to one thing: attention to detail. And if you'd rather not handle it alone?

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