The Most Common Tenancy Disputes, and What Can be Done About Them
Published on April 6, 2017 by Sarah Mac
According to the Tenancy Deposit Scheme (TDS), the most prevalent reason behind tenancy deposit disputes in the private rented sector is cleaning. Disputes over rent arrears have also soared, says the organisation.
Cleaning has continued to be the most common dispute in cases brought before the TDS. The latest figures reveal that it accounted for 57 per cent of cases over the period 2015-2016. Property damage accounts for 51 per cent of disputes – second in line – with redecoration coming in third at 32 per cent.
These figures prove that unquestionably, a detailed schedule of condition should be in place at both ends of the tenancy, together with an accurate inventory and check-in/check-out reports.
False Economy
Landlords are under a great deal of pressure these days to stem leaks from their bottom line. And with so many tax cuts and hikes and financial challenges it’s no wonder. The trouble is, sometimes in an attempt to make savings, landlords will inadvertently cut costs in such a way that they end up spiting themselves. Scrimp on a professional inventory, and this is precisely what you could be doing.
A professional inventory is unbiased, highly detailed and packed with photographic evidence. It is designed to assist in avoiding deposit scheme disputes. If there turns out to be a need to claim deductions – for cleaning, damage or anything else – then you will be more likely to succeed, because the evidence will support your claim in an unbiased manner.
Professional Inventory Benefits
And there are more benefits. Say you’ve supplied high quality furnishings and fixings at the start of a tenancy. You’ve invested well so you can demand a decent rental rate; all good. Except at the end of the tenancy, it comes to light that your high end fittings have been swapped with tenants’ own lower value items. Of course, you have a detailed inventory to prove what was there before, don’t you? No? If there’s no inventory, or a basic one that doesn’t go into detail (think ‘table lamp’ versus ‘New John Lewis LED white and chrome anglepoise table lamp’), then what evidence will you have that a swap has taken place?
Landlords aren’t trained the same way inventory clerks are. During their training, clerks learn to spot a variety of issues. They know just where to look for signs of neglect and damage. For example, would you think to look under a rug for scratches, burn marks, stains or holes in flooring? Behind the sofa for dents or scuffs on the wall? At the back of the freezer for signs of failure to regularly defrost it? Under the mattress for broken bed slats or in the back of the bathroom cupboard for mould? It’s all part of the inventory clerk’s job to seek out and document such issues at the end of a tenancy so that there is independent evidence to compare with the check-in report.
Inventory clerks are also trained to note the repair and maintenance tasks required to restore the property to a rentable state and will note who is responsible for those tasks based on whether they are down to neglect or damage, or fair wear and tear. They’ll also document health and safety issues such as broken glass, electrical and fire hazards and anything else that could pose a risk. All this is highly useful and valuable to the busy landlord.
Evidence, Without a Doubt
When there is a tenancy deposit dispute, there needs to be no doubt as to how the condition and contents at the start of a tenancy compared to the condition and contents at the end.
The Tenancy Deposit Scheme says, “The importance of a properly completed inventory cannot be underestimated. It must be robust and defensible if it is to be held up as a proper indicator of the facts and therefore viewed as acceptable by an adjudicator or court. Tenancy deposit protection schemes do not disregard, out of hand, inventories that are not prepared by independent companies or individuals. However, they are likely to place less weight on their contents.”
And according to the Deposit Protection Service, “Any inventory document written by the landlord (not an independent third party) that doesn’t give details about the condition or age of an item will have less value when being considered by the adjudicator. It may also affect the landlord’s claim based on ‘a balance of probabilities.”
Making Deposit Scheme Deductions
If you wish to make a deduction from the deposit at the end of the tenancy to cover the costs of repair, cleaning or replacing missing items, then you must obtain the tenant’s permission because the deposit remains the property of the tenant at all times.
If the tenant refuses to give permission, perhaps because they disagree with the allegations of damage or neglect, then the administrators of the deposit scheme will refer the dispute to the adjudication process.
During this process, the adjudicator will study the original inventory and check-in report, together with the check-out report and proof of damage and / or missing items. The adjudicator will look for reliable evidence; clear before and after descriptions; photographs, receipts or quotes and proof that the tenant was invited to make his or her own comments on the check-in report. If a tenant is not invited to comment on the check-in report then it could be construed that there were entries on that report that they were not aware of and that could, in theory, be incorrect.
Where the inventory and reports make it clear to the adjudicator that the landlord is entitled to claim from the deposit to cover his costs, they will rule in favour of the landlord. However, if the reports do not provide the necessary evidence that damage has occurred during the tenancy through tenant neglect or negligence, then the tenant will get to keep the deposit and the landlord will have to bear the costs of repair.
A professional inventory is an investment rather than a cost. To protect your property with a professional inventory, get in touch.