Guide · 2026
Security deposit disputes: landlord and tenant rights
By Winfred Quek · 9-minute read · Last reviewed May 2026
Facts verified: May 2026 · Sources linked below
Key Takeaways
- • A deposit can only be deducted against what the tenancy agreement specifies, and only at actual cost.
- • Fair wear and tear, the natural ageing of paint and fittings, is not deductible. Damage beyond it is.
- • A landlord should itemise deductions with receipts or quotes, not hold back a round sum.
- • A signed move-in and move-out inventory with dated photos settles most disputes before they start.
- • If a deposit dispute cannot be resolved, the Small Claims Tribunals can hear it within their limits.
The security deposit dispute is the most common falling-out between landlords and tenants in Singapore, and it is almost always avoidable. The deposit is held to protect the landlord against genuine loss. It is not a windfall, and it is not a slush fund for refreshing a tired unit at the tenant's expense. When a dispute happens, it is usually because nobody documented the property's condition at the start. According to IRAS, a tenancy agreement is a chargeable document that must be stamped within 14 days at 0.4% of the rent, and an unstamped agreement is far harder to rely on if a deposit dispute reaches a tribunal.
This guide sets out what can and cannot be deducted, how to document a handover properly, and what to do if the two sides cannot agree.
What can a landlord deduct from the deposit?
The deposit secures the landlord against specific, defined losses. The deductible categories, all of which should be named in the tenancy agreement, are:
- Unpaid rent for any period the tenant occupied the property and did not pay.
- Unpaid utilities or other charges the tenant was contractually responsible for.
- Damage beyond fair wear and tear, the cost of repairing actual damage caused by the tenant, above the natural ageing of the property.
- An unfulfilled reinstatement obligation, the cost of returning the property to the condition the agreement required, where the tenant did not.
The crucial limiting principle is that the deduction is the actual cost of remedying the loss, evidenced by a receipt or a quote, not a round number the landlord decides to keep. A landlord who deducts a flat sum without itemising it is on weak ground.
What is fair wear and tear, and why does it matter?
Fair wear and tear is the deterioration that happens naturally as a property is lived in over the lease, regardless of how careful the tenant is. Paint fades. Flooring shows traffic. A sofa softens. Hinges loosen. None of that is the tenant's liability, because none of it is damage; it is ageing. The deposit cannot be used to repaint a unit simply because the paint is older than it was, or to replace fittings that have reached the end of their natural life.
Damage, by contrast, is loss caused by misuse or neglect: a hole punched in a wall, a deep stain or burn, a cracked basin, a broken appliance the tenant mishandled. That is deductible. The line between the two is exactly why a move-in and move-out condition record matters so much, it is the evidence of which side of the line a given mark falls on.
| Item | Fair wear and tear (not deductible) | Damage (deductible at actual cost) |
|---|---|---|
| Walls | Faded paint, minor scuffing over a long lease | Holes, deep gouges, unapproved repainting in odd colours |
| Flooring | Light traffic wear, minor surface marks | Cracked tiles, deep scratches, burns |
| Fittings and appliances | Loosened hinges, ageing of an old appliance | A broken appliance through misuse, missing items |
| General | Natural ageing consistent with the lease length | Damage requiring repair or replacement |
Illustrative only. The reinstatement and inventory clauses of the specific tenancy agreement govern the actual position.
How should a handover be documented?
Almost every deposit dispute traces back to a missing record of the property's condition. The fix is simple and costs nothing but half an hour at each end of the tenancy.
With a signed inventory and dated photos at both ends, there is very little left to argue about, the photos show exactly what changed. Without them, a deposit dispute becomes one person's recollection against the other's, and that is when it ends up before a tribunal.
What if the landlord and tenant cannot agree?
When negotiation fails, the usual venue for a tenancy deposit dispute is the Small Claims Tribunals, part of the State Courts. The Tribunals are designed to be accessible and quick, you do not need a lawyer, and the process is inexpensive relative to the courts. According to the State Courts, the Small Claims Tribunals hear certain disputes arising from residential tenancy agreements, subject to a monetary limit on the claim and a time limit from when the dispute arose.
Before filing, both sides should try to resolve the matter directly, with the inventory, photos, receipts, and quotes laid out plainly. Many disputes settle at that point once the evidence is on the table. If it still cannot be resolved, the Tribunals provide a structured route. Confirm the current claim limit and filing time limit with the State Courts before proceeding, as these are set by the Tribunals.
Winfred's Take
In my experience, the deposit dispute is the easiest dispute in property to prevent and one of the most stubborn to resolve once it starts. The reason is the same in every case: nobody did a proper move-in inventory. Half an hour with a checklist and a phone camera on day one removes ninety per cent of the argument on the last day. Landlords, do not treat the deposit as a fund for general refurbishment, it covers your real loss and nothing more, and IRAS rates and fair wear and tear are not your tenant's problem. Tenants, insist on the joint walkthrough and keep your copy of the photos. The deposit is your money until the landlord can show, with evidence, a reason it is not.
FREE · 30 MINUTES · NO COMMITMENT
Facing a deposit dispute, or want to avoid one?
We work through the deposit clause, what can fairly be deducted, how to document a handover, and the realistic options if it cannot be resolved, so the deposit is settled cleanly.
Winfred Quek · CEA R073319H · Crestbrick
Frequently asked questions
Can a landlord keep the whole deposit?
Only if the documented, evidenced deductions, unpaid rent, unpaid utilities, damage beyond fair wear and tear, unfulfilled reinstatement, add up to the full deposit. A landlord cannot keep the deposit as a matter of course; each deduction must be a real, costed loss the agreement allows.
Can my deposit be used to repaint the unit?
Not for normal ageing of the paint. Repainting due to fair wear and tear is the landlord's cost. The deposit can only be used to repaint if the tenant caused damage, for example unapproved colours or wall damage requiring it, and then only at actual cost.
How long does a landlord have to return the deposit?
The timeline is whatever the tenancy agreement states, commonly within 14 days of handover once deductions are agreed. The agreement governs this, so check the deposit clause.
Where do I take a deposit dispute in Singapore?
The usual venue is the Small Claims Tribunals, part of the State Courts, which hear certain residential tenancy disputes within a monetary limit and a time limit. Try to resolve the dispute directly first, with all the documentation laid out.
What is the best way to protect my deposit?
A joint move-in walkthrough with a signed inventory and dated photographs of every room and defect. The same exercise at move-out. With matching records at both ends, there is very little a deposit dispute can turn on.
Sources & References
Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence L31010886H), advising Singapore landlords, tenants, and property investors. CEA R073319H. The information on this page is general and does not constitute legal, tax, or financial advice.