According to the figures, of the dispute cases submitted to TDS in 2019-2020, cleaning was cited in 42% of cases, closely followed by damage to the property (41%), redecoration (39%), gardening (23%) and rent arrears (14%).
Data also shows that, in recent years, there has been a steady increase in the proportion of disputes being raised by tenants. In the year to March 2020, this rose to 74%, compared to 67.4% in the previous year.
In total, there were 34,993 disputes in the year to March 2020, down from 35,513 the previous year. The drop in disputes occurred despite a rise in the number of tenancy deposits in England and Wales at the end of March 2020, which reached 4.1 million, up from 3.9 million in 2019.
Paul Oxley, Managing Director of Decorus for Sage, comments: “According to the TDS, many tenants claim that the cleanliness of the property at the start of the tenancy was not clear, or that the tenancy agreement did not make clear what was expected of them.
“So it is vital that landlords have a proper inventory prepared and do a thorough check-in and check-out, so they have the right proof of condition at the start and end of a new tenancy agreement.
“When landlords take the time to spell out tenants’ responsibilities in terms of cleaning and caring for the property, tenants are more likely to conduct their tenancy in a way that is respectful to the property and this minimises any potential damage.
“At the check-out stage, the tenant should be made aware of the areas requiring cleaning and the potential cost involved. It is important to remember that the tenant is only obliged to return the property in the same state of cleanliness as at the start of the tenancy, after allowing for fair wear and tear.
“Landlords should conduct thorough check-in and check-outs at the start and end of the tenancy, supported by a professional inventory. Clear communication on the tenant’s responsibilities when they move into the property will improve the chances of a trouble-free check-out.
“The common mistakes in landlord inventories are essentially lack of detail. Landlords often write just a brief shopping list and often do not have the appropriate photographs and videos, along with accompanying written descriptions to show the condition of the property and its contents.
“If the landlord finds the tenant fails to agree to the deposit deductions, they need to ensure they have the evidence such as a thorough and fully detailed inventory, copies of which are given to the tenant at check-in and check-out. It is imperative that tenants sign their acceptance of the contents of the check-in within seven days of the move in, and this signed copy should be retained by either the landlord.
“When landlords are managing multiple properties, it’s easy for documentation to go astray. Software developed specifically for the property industry uses advanced storage methods to combat this common issue. Decorus for Sage, for example, backs up system information on Microsoft Azure. If inventory information is lost or accidentally deleted, it can be easily restored. The software also runs on cloud servers so logged information can be accessed from any device with an internet connection.”
The firm has outlined some common mistakes which increase the risk of a deposit dispute below:
Landlords make the mistake in thinking that inventories can be heavily comprised of photography and video. Completely photographic or filmed inventories without a complete written accompanying report are almost useless. If photography or film has been used in the inventory, make sure it is detailed enough and dated.
Include photographs of the garden; inside of the oven; interior of the shed or garage; and keys handed over to tenants - these are the main areas of problems that occur and are often down to misinterpretation at the end of a tenancy.
There is no need to photograph every single corner of the property as this is simply a waste of time - stick to the important things. Films and photographs alone will be of little use in a dispute when an adjudicator is trying to find hard evidence of a particular area.
Many landlords do not carry out a thorough and full check-in and check-out of the property at which the tenant was present. Landlords and agents who don’t have this available when they go to court, have little chance of winning the case.
Often there is no correspondence with the tenant that is documented and no receipts are kept for the deductions on the deposit eg cleaning and repairs.
