London Landlord Deposit Disputes Highest In the UK
When it comes to the end of a tenancy and the return of the tenant deposit, there are plenty of things that can go wrong, wherever your property is based.

However, according to a recent report, London landlord deposit disputes appear to be the highest in the UK.

This blog delves deeper into the reasons behind landlord/tenant disputes in London and what can be done to avoid these disagreements altogether.

 

London Deposit Disputes

According to Property Wire, London is home to the highest cases of rental disputes between landlords and tenants.

This data comes from Ome, a deposit replacement membership scheme, who found that a sizable 37% of all rental disagreement cases last year came from the UK’s capital. London was followed by the South East with 16% of cases and the North West coming in at 11%.

Why London? It could be partly due to the fact that rental prices are far higher, demanding hefty deposits. The greater the sum being argued over, the more likely both parties will want a return on their investment.

 

Common Causes of Deposit Disputes

The data showed that the number one reason for deposit disputes across the majority of the UK, including London, was poor communication. Whereas, in the South East, the most common cause was cleanliness at check out.

Other common reasons for disputes include;

  • Damage to property
  • Cleanliness
  • Missed payments
  • Inventory discrepancies

 

Landlord Deposit Dispute: Wear and Tear

What constitutes fair wear and tear is an issue that often occurs at the end of the tenancy, as the definition can vary from person to person. Our guide on fair wear and tear sets out what is considered to be normal and unavoidable wear and tear and how to help tenants prevent further damage.

 

Landlord Deposit Dispute: Cleaning

Cleanliness at check-out was another common issue when it came to rental deposit disputes last year. This can be avoided through regular property inspections and investing in a pre-check out service.

 

How to Avoid Deposit Disputes

If you’re a landlord or letting agent in London, minimising the chance of disputes will most likely save you time and money in the long term (not to mention stress!)

Here are some of the ways you can avoid a dispute in the first place;

 

Tenancy Deposit Protection

Ensure the deposit is protected in a tenancy deposit scheme as this is a legal requirement. Failure to do so could lead to your tenant demanding a full return of their deposit or more.

 

Tenancy Deposit Return Time Limit

At the end of a tenancy, landlords must return the deposit within 10 days after any deposit deductions have been agreed.

 

Invest in a Professional Inventory Service

One of the most important steps you can take to avoid deposit disputes is by starting the tenancy right with a thorough and professional inventory.

A professional inventory report will set out the condition of the property and its contents at check-in, highlighting any changes at the end of the tenancy. This vital document provides evidence to support you if you need to deduct from the deposit. For example, if there is damage to the property or furnishings beyond normal wear and tear or if there are items missing from the final inventory.

An inventory report signed by the tenant is your best protection if your tenant decides to raise a dispute over deposit deductions. Without it, you are very unlikely to recover the funds for maintenance and repair.

 

Consider a Pre-Check Out Service

Another way to avoid a dispute is to provide tenants with a pre-check out service at the end of their tenancy. As part of this service, a property clerk will visit the property and provide advice to tenants on what maintenance needs to be undertaken in order to have their full deposit returned.

The benefits of a pre-check out service include smoother transitions between tenants, less maintenance needed and therefore less chance of deposit disputes.

 

Regular Property Inspections

Organising regular property inspections to your rental helps to minimise the chance of disputes as experienced clerks can check that the property is being properly maintained by tenants and reduce the chance of damage at check-out.

 

Positive Communications

It may sound obvious, but this is a common problem amongst landlords / letting agents and tenants, particularly in London. A breakdown in communication or negative feedback can lead to a lack of trust and a greater chance of deposit disputes when you reach the end of the tenancy agreement.

To avoid this, it’s best to give a positive first impression to tenants and maintain regular and honest lines of communication.

 

Landlord Deposit Dispute Advice

If issues can’t be solved through direct and honest communications, it may be worth seeking the advice of a dispute resolution service to resolve the issue. An impartial adjudicator will be able to assess the dispute and hopefully come to an agreement that is acceptable to both sides.

If it comes to this, having a detailed inventory report is vital. At No Letting Go, we provide professional inventory reports to landlords, letting agents and property businesses throughout the UK. With expert local branches around the country and the latest property technology at our disposal, we’re experienced at helping property professionals protect their investment.

Find your local London property inventory service here.

Don’t let a deposit dispute affect your business, explore our property inventory service today.

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