Move-Out Inspections and Deposit Refunds — Wear and Tear vs Damage, Fair Deductions and Avoiding Disputes

Move-out is when landlord–tenant relations are most strained. Tenants want the full deposit back for their next home, landlords want the unit ready to let again, and both see scuffs and stains differently. Most deposit disputes are preventable with a clear, evidenced process that starts on move-in day.

It All Starts at Move-In

A fair move-out inspection needs a move-in reference: dated photos or video of every corner, an inventory of furniture and appliances with their condition, existing defects such as cracks, stains and scratches, and water and electricity meter readings, signed by both parties. If the landlord doesn't do this, tenants should take their own photos and message them to the landlord on move-in day to create dated evidence.

Wear and Tear vs Damage

Normal wear (shouldn't be deducted)	Damage beyond normal use (reasonable deductions)
Paint fading with time; small marks from hanging pictures	Large holes; unauthorised repainting; crayon all over walls
Light scratches on floors from use	Wooden floors swollen by neglected water; tiles cracked by dropped weights
Curtains faded by sunlight	Torn curtains; broken rails
Furniture worn with age	Sofas torn by pets; mattresses with permanent stains
Appliances failing with age without misuse	Appliances damaged by misuse or dropping

The principle: a unit lived in for a year or two won't look new. Landlords shouldn't use tenants' deposits to upgrade the unit beyond its starting condition, but tenants are responsible for damage caused by their actions or negligence.

A Fair Move-Out Process

1. Give notice per the lease — in writing, with the notice period the contract requires.
2. Inspect together — both parties walk the unit on key-return day, comparing with the move-in record.
3. Photograph and list — record agreed and disputed items; both sign.
4. Take final meter readings — to charge utilities up to the move-out date.
5. Return all keys and keycards — matching what was issued.
6. Itemise deductions with evidence — the landlord lists deductions in writing with repair quotes or receipts and refunds the balance.

Refund Timing and the Law

For landlords covered by the controlled residential-lease rules — generally those letting five or more residential units — the Contract Committee's notification requires deposits to be refunded within a set period after the lease ends, with any deductions itemised for the tenant. Small landlords outside these rules should follow the same practice, since unjustified delays can lead to legal claims.

What Tenants Can Do About Unfair Deductions

Request the deduction list and evidence in writing, then dispute it with your own evidence such as move-in and move-out photos. If negotiation fails, tenants can complain to the Office of the Consumer Protection Board where the landlord is a business operator, or sue to recover the money; low-value claims follow a straightforward process.

FAQ

Can landlords deduct general cleaning fees?

It depends on the lease. If the contract requires returning the unit clean and the tenant didn't, actual cleaning costs can be deducted. Flat cleaning fees charged in every case should be stated clearly in the contract from the start.

Can a tenant use the deposit as the last month's rent?

In principle the deposit covers damage, not rent. If the last month goes unpaid, the landlord has no security for damage, so agree any arrangement clearly in writing.

Can I repair things myself before moving out?

Yes, and it's often cheaper than deductions — but tell the landlord first and repair to an equivalent standard and material.

Conclusion

Smooth deposit refunds come from a good move-in record, fair separation of wear from damage, joint inspections and itemised, evidenced deductions. Read more about leases and tenant screening on the MyProperty blog.