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Landlord Bond & Deposit Issues

Bond & Deposit Lawyers

Failing to register a tenant’s deposit can result in you having to pay your tenant up to three times the value of the deposit and can also make it far more costly and time-consuming for you to regain possession of a rental property. If you have a deposit issue then please call us and we can put your mind at rest and build a strategy going forward.
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Landlords & Deposits

Deciding to rent out a property can be a daunting process. Unfortunately, many landlords are unaware of the legal steps they must take when renting a property.

One of the most common oversights made by landlords is the failure to register the tenant’s deposit. Since the 6 April 2007, most landlords have been required to register any deposit from their tenant.

Failing to register a tenant’s deposit can result in a landlord having to pay their tenant up to three times the value of the deposit and can also make it far more costly and time-consuming for a landlord to regain possession of a rental property.

When a tenant leaves the property landlords can make certain deductions from a tenants deposit after they leave the rented property. What they can deduct money for must be set out in the tenancy agreement or a separate document signed by both parties. If deductions are taken incorrectly the tenant is able to challenge this.

It is therefore extremely important for landlords to seek legal advice if they are unsure as to their position.

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Landlords FAQ

The notice will depend on the location of the property and the result you are trying to achieve.


In England, the only notice available is a Section 8 Notice. The notice period ranges from 2 weeks to 4 months. There are several grounds that will cover any breach of tenancy caused by the tenants actions and also, a route for if you wish to move into the property or sell your property. The Renters Rights Act 2025 has abolished the Section 21 Notice for non-fault evictions.


In Wales the notice most commonly used is the RHW20 which deals with breaches of the notice and the other notice is RHW16 which replaces the former S21. However, the RHW16 is for 6 months’ notice and not 2 months.


Please note, whatever ground you decide to seek possession under, there are very strict regulatory hurdles you first have to go through to ensure that the notice is valid.

This is dependent on where in the UK the property is based.

If the property is based in Wales, then you must either serve a RHW20 (breach of contract serious rent arrears), or a RHW16 notice. Other breaches you need to use the RHW23 notice.

The notices in Wales will rely upon the contract between you and the contract holder and whether you have all the necessary documentation you need in place to serve that notice.

Preparation helps reduce the likelihood of successful challenges from tenants and helps to streamline the process of repossession.

It is also dependent upon whether you have a potential counterclaim (set off) against you for failing to comply with any of the legislative documents.

It is also dependent on your specific requirements (e.g. Do you want to return to live in the property? Do you want to sell the property?). Your requirements will be specific to your own needs.

If the contract holder is more than 2 months in arrears in Wales, you should serve a RHW20, but be careful of setoffs against you, as many contract holders raise last minute claims (e.g. disrepair or failing to register a deposit).

The following are just some of the documents you will need to have in place:

  • A gas safety certificate that must be in place for the duration of the occupancy
  • A valid Energy Performance Certificate (EPC)
  • An electrical safety report
  • You must be registered and hold a licence with Rent Smart Wales.

In addition to this, you must ensure that your property is fit for habitation (outlined in the Renting Homes (Wales) Act) and that any bond has been registered in time and the prescribed information has been served.

Apart from the RHW20, you cannot serve a notice in the fixed term.

In England:

Please note the new Renters Rights Bill will possibly change the following advice:

You can serve a S8 for a breach of the tenancy. The S21 notice will not be available to Landlords once the new act comes into force. Instead, there will be more grounds for a Landlord to rely upon in the new S8 notice.

It will make it a lot harder for Landlord to gain possession of properties in England, so if you need to obtain a possession order, it should be dealt with before the new act comes into force.

The notice period of a Section 8 notice will increase; you will not be able to obtain possession within the first 12 months, without specific grounds (e.g. serious rent arrears, which will increase from 2 months to 3 months’ rent arrears, and if there is repossession).

Again, as per Wales, it is important that all the regulatory matters are attended to before the notice is served. Such regulatory matters include (but are not limited to):

  • Serving a how to rent guide
  • Making sure the gas certificates are updated every year
  • That no improvement notice is outstanding
  • That the deposit has been registered and the prescribed information has been served.
  • There is an EPC and an electrical report available that is in date.


Obtaining possession in England and Wales is very challenging and there are many pitfalls along the way. If you are looking to recover possession in England or Wales, it is important that you seek expert advice. We strongly advise you not to rely on the information we have provided because of the speed of change in housing legislation and case law, and the fact that we cannot cover your circumstances (and each landlords circumstance will vary from another). We are happy to discuss how we can help you in our 10-minute free chat, or we can check your documents to ensure you will be compliant, and what is the most appropriate notice for you to serve, in our £150.00 checking service. If we have completed this, our notices will be served for only £50.00 plus vat per tenant.

We understand how frustrating this situation can be and how it can impact your finances and, in some cases, your mental health. As landlords ourselves, we are dedicated to recovering rental income as quickly and effectively as possible.

We have an excellent track record in rent recovery and obtaining possession when a tenant (contract holder in Wales) fails to meet their rental obligations.

You can issue a notice for serious rent arrears (S8 in England, RHW20 in Wales). If you already have a judgment order, you can enforce that order against the tenant. Enforcement options include:

  • A third-party debt order to freeze a bank account
  • A bailiff or sheriff recovering goods equivalent to the debt
  • An attachment to the tenant’s earnings
  • Serving a statutory demand


However, it’s crucial to take a step back and consider whether the tenant has any potential claims they might use to offset the rent owed. Sometimes, exploring alternative options to regain possession may prove more beneficial than focusing solely on serious rent arrears.


Similarly, when considering enforcement options, it’s important to evaluate which approach is appropriate and whether it merits your investment to recover the debt. We adopt a practical and commercial approach, collaborating with you to make informed decisions. We do not proceed with a careless approach to the outcome, we always ensure that we do our very best to obtain the most effective outcome for you.

Both tenants (contract holders in Wales) and landlords have obligations to uphold. Tenants are required to fulfil their obligations just as much as Landlords, and if they fail to do so, a landlord can serve a notice for possession on them.

This notice effectively grants the tenant a two-week period to rectify the breach. If they do not comply, the landlord may proceed with a possession application.

This application will lead to a court hearing. We can represent you at that hearing, or alternatively, arrange for a qualified professional (such as a barrister) to attend on your behalf.

We have strong connections with barristers’ clerks across England and Wales, enabling us to secure their services at low and cost-effective rates.

If your tenant is in breach of contract there are both discretionary and mandatory grounds for possession. As the name suggests, discretionary grounds allow a judge to decide whether to grant possession or issue a suspended possession order. In contrast, with mandatory grounds (for instance, serious rent arrears), if all other elements are proven, the judge is expected to grant possession.

It is crucial that your notice clearly outlines the issue before you apply to the court. We can assist you in preparing this notice and advise you on whether a notice for breach of contract is the most appropriate course of action.

Since 1 December 2022, the Renting Homes (Wales) Act 2016 has fundamentally changed how properties are rented in Wales. The previous Assured Shorthold Tenancy agreements have been replaced by occupation contracts (unless exemptions apply). Therefore, from 2022 onward, landlords are required to provide a written contract to all tenants.

The Welsh government has issued a model occupation contract, but landlords will often need to modify this model to suit their specific needs and those of the contract holder.

The contract includes provisions that cannot be altered, referred to as ‘Key matters’ — these include the names and addresses of the parties, the property address, and the rental amount. Additionally, there are ‘fundamental terms’ which govern the basic functioning of the contract (e.g. how the contract can be terminated).

Furthermore, there are clauses known as ‘supplemental terms’ that address day-to-day issues. These terms must be mutually agreed upon by you and the contract holder and may echo the provisions found in the original AST (Assured Shorthold Tenancy).

Lastly, there are ‘additional terms’ which comprise practical arrangements agreed upon between the landlord and the contract holder. These can be added as long as they do not contradict the fundamental or supplemental terms, and they must not include any unfair provisions.

If you find this information overwhelming, we can provide you with an occupation contract tailored to your specific needs, ensuring you don’t have to worry about differentiating between supplemental and additional terms to include in your contract.

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