When renting out a property most landlords opt to take a deposit from the tenant prior to the tenancy starting. The deposit offers a level of protection to landlords and means that should the tenant breach the terms of the tenancy agreement, such as causing damage or not paying rent, they can then make appropriate deductions from the deposit.
Clear property damage and poor cleanliness or anything that is different from the property’s original state, which is easy to identify if there is an inventory management report and schedule of condition in place, enables the landlord to quite rightly use the tenant’s deposit as compensation.
So what are the top reasons given to tenants as to why they lost part or all of their tenancy deposit?
A new independent study by Romans has highlighted a few common issues that are cited by landlords when deducting funds from a tenant’s deposit:
+ 29% of tenants have experienced a deduction due to broken chairs, tables, door handles and other items
+ 24% of tenants have been penalised due to marks on the walls, this includes finger marks
+ 21% of tenants had to compensate for carpet stains
+ 12% of tenants have had a deduction for redecorating the property without the landlords permission
+ 9% of tenants have experienced a deduction for mould
Michael Cook, Romans Lettings managing director, said: “Returning deposits can cause disputes between landlords and tenants, so it is important that a detailed inventory is drawn up at the start and a proper check in and check out process is followed. Using a professional lettings agent to deal with all these details reduces the risk of a dispute over the deposit when a tenant moves out.
“Deposit protection is essential for landlords as it provides security that any damage caused can be repaired at no financial loss. It is mandatory that the tenants deposit is held in a deposit protection scheme so both parties are protected.”