A deposit dispute is a situation where a landlord wishes to deduct money from a tenants deposit and the tenant disagrees with this. Dealing with deposit disputes can be stressful. It can take up a lot of time and doesn’t always end in the way you would expect. Here we look at the process and how to deal with the dispute.
More often than not, disputes can be resolved simply and easily by discussing your concerns with your tenant. Communication is important! This starts from the very beginning of a tenancy.
It is also worth noting that as a Landlord you need to have a realistic expectation about what condition the property should be left in, taking into account fair wear and tear to the property along with the lifespan of furnishings and fittings. How much wear and tear would be dependent on the length of the tenancy and the number of occupants. Also, you need to consider the original quality and condition of the property when it was let.
Preparation is key.
Make sure at the beginning of any new tenancy a full inventory/condition report is undertaken. This needs to include a detailed description of each room and its condition, along with supporting photographs. You MUST get the tenants to sign a copy of the report confirming they agree with its contents.
Throughout the tenancy.
Make sure you carry out inspections throughout a tenancy. This not only will help you spot any obvious maintenance issues but is also an opportunity to repair any minor problems before they spiral. Remember, as a landlord you can’t tell your tenant how to live if they are untidy, however if the property is not clean or too cluttered you can highlight this if you feel it could result in damage to the pro – i.e. mould from inadequate ventilation if there is too much clutter. Anything you spot make sure you follow up in writing. This will hopefully mean you won’t need to deduct monies at the end of the tenancy.
At the end of the tenancy.
Talk to your tenant! Send them a letter to confirm expectations close to their check out date. Confirm how you expect the property to be left.
If the above preparation still ends in a dispute, what should you do to ensure your claim is successful.
Evidence is key. The adjudicator has no prior knowledge of your property so any decision they make can only be made based on the evidence put in front of them. The onus is on you, as the landlord, to be able to show why you are claiming a deduction, if you cannot do this then the adjudicator will have no choice but to award the money back to the tenant.
Make sure your claim is clear and easy to read. State facts in short concise sentences. The adjudicator does not wish to read pages and pages of text about the story of the tenancy. Think of the end user – what would you want to see and how would you want it illustrated?
It will also be necessary to provide the following evidence in relation to your dispute;
- A Copy of the tenancy agreement
- A Copy of the signed inventory/condition report. This should include dated photographs.
- A full detailed check out inspection report. This should include dated photographs showing any damage.
- Copies of invoices/estimates and quotes for any works undertaken to repair damages or cleaning costs
- Rent statement showing any arrears (if applicable)
- Video evidence can be included
We hope the above helps you with your claim. If you have any concerns in regards to this or any other tenancy matter then please do not hesitate to contact me, Gemma Scott-Davies, Lettings Manager, 01474 321957, gemmascott@mandmprop.co.uk.