- 40% of tenants who have moved in the past three years lost some or all of their rental deposit
- Average amount of deposit funds lost is £313 per person
- 20% of renters who lost funds say charges related to damage caused by previous tenants
- 10% resorted to legal action to recover withheld funds
As a result, one in 10 (10%) of these renters has resorted to legal action to recover the missing funds.
40% of the 8.6 million tenants (3.4 million) who have moved home in the past three years have had deposit funds deducted at the end of their tenancy to cover various charges applied by the landlord. On average, £313 was withheld per person, although one in five (19%) said they had more than £500 withheld.
FindaProperty.com's findings highlight a breakdown in communication between landlords and tenants, with fifth (20%) of all renters who were charged for damages claiming that these damages were in fact caused by a previous tenant.
The most popular reason for deposit monies being withheld was to cover the cost of cleaning (37%) and damage to carpets and curtains (21%). 19% of charges also related to marks on the wall and 13% to poor garden maintenance.
Nigel Lewis, property analyst at FindaProperty.com, said:
"Our research shows one of the main reasons funds aren't returned is a miscommunication between landlords and tenants about the condition in which the home should be left. The most common causes for renters not getting their full deposit back are inadequate cleaning, wear and tear and poor garden maintenance and these are all factors that are usually spelt out in the tenancy agreement.
"For this reason, it's vital for renters to read their tenancy agreement closely before signing it and review it throughout their rental contract especially when it's time to vacate the property."
Almost a fifth (19%) of all cases where deposit funds were withheld were either resolved or charges were reduced following discussions between the landlord and tenant, highlighting that there is room for negotiation in many cases. Unfortunately however 23% of tenants who contested their deductions were not so lucky and did not get any extra deposit back from the landlord.
43% of tenants who have had deposit funds withheld also say the amount of money deducted was considerably more than it would have cost to fix the problem identified by the landlord.
Nigel Lewis continued:
"The cost of renting in the UK is already high, and with many tenants relying on the return of one rental deposit to cover the cost of the next, this isn't good news for the nation's growing population of renters.
"All renters should know their rights when it comes to deposit protection schemes, which are mandatory in almost all private tenancy situations and provide an opportunity for redress by both tenant and landlord if there are disagreements when it comes time to vacate a property.
"To avoid unnecessary deductions, we advise renters to insist on a thorough inventory at the start of their tenancy. They should also notify the landlord of any problems or damages to the property as they arise. And when it comes to cleaning and maintenance, allow plenty of time to get the job done or consider a professional cleaning service - it's far better to be safe than sorry."
