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Deposit disputes: don’t fall at the final hurdle

Deposit disputes: don’t fall at the final hurdle

For most landlords the thought of a dispute at the end of a tenancy can fill you with dread. But just because only approximately one per cent of tenancies end in a dispute doesn’t mean you should just grit your teeth and hope for the best.

As you approach the end of the tenancy there is always the chance that a dispute might arise and what’s important to realise is the fact that the tenant is entitled to the entire amount of the deposit at the end of the tenancy unless you can fully evidence why you need to make a deduction.

Don’t forget that the adjudicator assigned to your case is only able to consider the evidence you submit so the outcome will depend on this – in some cases landlords are losing disputes simply because of poor quality evidence.

Preparing for a dispute starts at the beginning of the tenancy. That’s our mantra. And when it comes to disputes, it’s worth heeding the risk and taking more of a ‘belt and braces’ approach – it’s likely to pay off.

Whether you use a local letting agent or not, follow this to the letter and see the tips below to make sure you’re fully prepared and have all the evidence you may need to rely on.

At the beginning

  • Tenancy agreement – is it fair, clear, concise and well-worded? Badly worded tenancy agreements are a leading cause of landlords losing disputes.
  • Inventory reports – a good inventory creates a complete record of the fixtures, fittings and decor, and will thoroughly describe the condition and cleanliness of the property and its contents. This will allow you to compare the standard of the property when the tenant moves out. It is advisable to use a third party inventory company as it will hold more weight in the eyes of an adjudicator by being objective and independent.
  • Photographs – date-stamped photos showing the condition of the property and contents prior to tenants moving provide good supporting evidence in disputes.
  • Check-in meeting – carry out a check-in meeting so you and your tenants can meet and get the landlord-tenant relationship off to a flying start.
  • Invoices and receipts – what have you bought before your tenant moves in? It is advisable to keep all receipts for proof of purchase.
  • Deposit protection certificate – obviously don’t forget to protect the deposit, and pass the certificate on to your tenants along with the ‘Information for Tenants’ leaflet every time you issue a new AST.

During the tenancy

It’s not just the end that matters, the journey counts too…

  • Rent account statements – keep accurate records of rent received from tenants and note late payments. If the rent is not paid, inform the tenant of any arrears in writing.
  • Invoices, receipts, utility bills – document payments for cleaning charges and repairs by keeping invoices, receipts and bank statements as evidence of costs incurred.
  • Correspondence – keep copies of all correspondence such as emails and letters between you and your tenants
  • Reminders to the tenant – remind the tenant of their obligations under the tenancy agreement shortly before the tenancy ends, preferably in writing.

At the end of the tenancy

  • Check out report – again, consider using a professional inventory company: it’ll hold more weight with the adjudicator and isn’t such a subjective take.
  • Talk to your tenants – don’t shy away from discussing any issues with your tenants as this is the most important time to prevent a dispute by highlighting areas for concern.
  • Unprotect – have you unprotected your deposit? Once you have, make a note for your records.

Advice provided by

my|deposits is a government-authorised tenancy deposit protection scheme. It is designed to enable landlords and letting agents to take and hold a deposit for the duration of the tenancy.

my|deposits has successfully protected more than a million deposits. Over 80,000 landlords use them, and they are the preferred choice for many large and small letting agents. To find out more, visit their website here.