Arbitration.Inc
A tenant moves out. You inspect the unit, find damage, and withhold part of the deposit to cover repairs. The former tenant disagrees, and the emails start. The amount is a few hundred dollars, sometimes a little more, and neither side wants to spend a day in court over it.
Why deposit disputes drag on
Deposit disagreements are small in dollars and large in time. Both sides usually believe they are right. The manager has a repair invoice; the tenant has a memory of leaving the place clean. Without a neutral decision, the dispute either fades without resolution or turns into a court filing that costs more than the amount in question.
Rules about deposits, deadlines, and itemized deductions also differ from one state to another, so the first step in any dispute is knowing which rules apply to your property.
The record decides it
Most deposit disputes come down to a short list of documents: the signed lease, the move-in condition report and photos, the move-out photos, the itemized list of deductions, and the repair invoices. When those exist, a neutral decision maker can compare the unit at move-in with the unit at move-out and decide which charges are supported.
That is exactly what arbitration does. Each side submits its documents and its position, and a neutral arbitrator reviews the whole record and issues a written, binding award.
What it needs: an agreement to arbitrate
Arbitration rests on consent. For property managers, the natural place for that agreement is the lease. If your leases do not include one, it can be added for future tenancies, or both sides can agree to arbitrate a specific dispute after it arises. A lawyer familiar with your state can tell you how to word it.
What filing looks like on Arbitration.Inc
On Arbitration.Inc, the claim is filed online with the lease, the photos, the deduction list, and the invoices attached. The other side is served a notice of arbitration, can read the claim and the evidence, and can respond with their own. A neutral arbitrator decides the case under our published procedural rules, which are built to reach an award in about two weeks.
Either side can file. A property manager can file over an unpaid balance or damage beyond the deposit; a tenant can file when they believe a deduction was not supported. Arbitration.Inc is the forum, not either side's agent.
A short checklist for managers
Photograph every unit at move-in and move-out, dated and room by room. Keep the condition report signed by the tenant. Send an itemized list of deductions with the invoices behind them. Keep the conversation in writing. Those habits make any dispute shorter, whichever way it is decided.
Arbitration.Inc does not give legal advice. For questions about deposit rules where your properties are, speak with a lawyer.
New to the terms? Read what arbitration is or the plain-English glossary. See how a case runs for Property & Rentals.