Tenant deposits in Kenya: a landlord’s guide
Deposits cause more landlord–tenant disputes than almost anything else. Most of them come down to missing paperwork. Here is a simple, fair way to handle a deposit from the day it is paid to the day it is refunded.
1. Write it down when it is paid
Give a receipt for the deposit that says it is a deposit (not rent), the amount, the date and what it is for. Use the rent receipt generator or your software. Keep it separate from rent in your books.
2. Record the condition of the house
Before the tenant moves in, walk the house together and note existing marks, broken fittings, meter readings and keys handed over. A signed checklist with dated photos prevents most arguments later.
3. At move-out, inspect together
- Walk through with the tenant using the move-in checklist.
- Read the final water and electricity meters and work out the last bills (see billing utilities).
- List any deductions with a reason and a receipt or quote for each.
- Show the tenant the calculation and refund the balance.
What is a fair deduction?
| Usually fair | Usually not fair |
|---|---|
| Unpaid rent and utility bills | Normal wear: faded paint, small scuffs |
| Repairing damage beyond wear (broken doors, holes, missing fittings) | Repainting the whole house “because it is empty” |
| Deep cleaning if left filthy | Charges with no receipt or explanation |
Keep every document
Agreement, deposit receipt, move-in and move-out checklists, photos, final bills and the refund record. If a dispute ever reaches a lawyer or a tribunal, the landlord with the clearest records usually wins.
Frequently asked questions
How much deposit can a landlord ask for?
There is no single figure written into every residential agreement; it is whatever the tenancy agreement states. Often it is one or two months’ rent, sometimes plus a utilities deposit. Put the amount and its purpose in writing.
Can I use the deposit to pay unpaid rent?
If your agreement allows it, yes, and you should show the calculation to the tenant. Unpaid rent and damage beyond normal wear are the usual deductions.
How fast should I refund a deposit?
As the agreement states. Do it promptly after you have inspected the house and settled the final bills; unexplained delays are what turn disagreements into disputes.
Kodi keeps each deposit on the tenant’s record, settles it at move-out against anything owed and shows the refund clearly, so nothing is left to memory. See how payments and deposits are recorded.
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