On a recent valuation I was explaining the importance of having a bullet proof inventory to a new landlord. One eyebrow raised they asked “So I suppose that’s going to cost me even MORE money?”
And herein lies a big problem. New research from the Tenant Deposit Scheme Annual Review 2014 shows that more tenants than ever are winning deposit disputes.
Cleaning remains the most common cause of dispute, appearing in over half of cases (53%), closely followed by damage (46%), then redecoration (29%), arrears (16%) and gardening (14%).
So why do so many landlords lose?
Many of my landlords become very concerned when it is explained to them that having been unable to persuade a tenant to part with their deposit, they will have to supply evidence to an adjudication service. They feel it should be the other way around – the property is THEIR investment, the property has not been left in the condition that they hoped for so why should they have to be the one to take the time and effort to prove they should be allowed to take money from the deposit? This is understandable of course, but the trouble is that is not how the independent and legally trained adjudicators will see it.
It is important to remember when bringing a claim, that the starting point is always that it is the tenant’s money. So the burden of proving that the deduction is reasonable rests on the landlord. The tenant does not have to prove anything.
Only if
- you are able to show that the damage/claim is for something the tenant is liable for (e.g. that it is not fair wear and tear),
- that he was responsible for it (ie there is a significant difference between the check-in and check-out reports) AND
- that the sum you are claiming is reasonable,
will your claim be considered and adjudicated upon.
The best way to be sure you can provide evidence at the end of the tenancy, and avoid any disputes, is by ensuring the property condition is properly recorded at the start of the tenancy with a carefully compiled inventory. The agent or landlord should go through this with the tenant at check in and make sure the tenant checks and signs the inventory at this point.
Many landlords and agents are not conducting an adequate inventory or check-in and check-out and are failing to keep copies of correspondence with the tenant during the tenancy which can be invaluable in the event of a dispute.
Photographs at the start and then at check out, date stamped to prove they were taken at the time you say they were, are also essential.
Time and time again I have conversations with landlords about the importance of an inventory. And time and time again I see their eyes glaze over as all they hear is that it is going to cost them money. I am sure they all think it is just sales “blurb”, the evil agent trying to squeeze every ounce of profit from them. Who can blame them with all the bad press about Lettings Agents?
Take one recent example. A landlord comes to me with a 3 bedroom property. They don’t want to pay for an inventory, they are quite confident they can produce their own. I repeatedly make the point that if there is a dispute at the end, their inventory skills will be put to the test. They ignore me, and two years on, the tenant moves out. There were never any problems during the tenancy, but on departure we discover a small leak, impossible to detect without ripping the floor up, that has now caused irreparable damage. Landlords insist the floor was new when they moved in. Tenant insists it wasn’t. From their 2 page inventory it is impossible to tell as the condition was just recorded as “good”. No photos. The landlord lost their dispute and instead of getting the £1043 they hoped for, they are awarded a fraction of this. Suddenly the up front fee of £140 to produce a carefully compiled inventory, done by a property professional with dozens of photographs suddenly doesn’t seem such a bad investment…..