Nearly 3,300 calls were taken on this issue in the past year.
Complaints about private tenancy deposits now take up 5% of the charity’s total workload.
The report claims that despite a government protection scheme being introduced in 2007, awareness from the general public remains low. The average deposit for private rented properties is now £979.
Shelter claims that problems with deposits cause unnecessary stress for tenants, push people into debt and make it financially difficult for tenants to fund a move to another property.
Campbell Robb, chief executive at Shelter, said: “With the improved legislation now in place I strongly urge all renters to make sure their deposit is protected using our three minute online checker.
“Without that protection renters are putting themselves at the mercy of unscrupulous landlords and risk losing their hard-earned money that they paid in good faith.”
“It is extremely worrying that we have seen such a huge rise in problems with tenancy deposits at a time when privately renting is no longer just a stepping stone to something better, but a long term reality for more and more families.
“While we know that most landlords do the right thing, some cause absolute misery for their tenants, accusing them of owing thousands of pounds for damage that doesn’t exist or falsely claiming to have protected their deposit and then never returning it.”
