It is fair to say these are challenging times for everyone. Even minor matters which people would have overlooked or moved on from quickly can seem like a major issue.
While there are many pressing concerns for landlords and tenants to deal with right now, it is likely that some lingering matters will come to the fore right now.
Even though it is best for landlords and tenants to work together, disputes arise regularly. At David Harris & Co, we aim to minimise disputes, connecting landlords and tenants in an effective manner. However, we know disputes occur, so it is important to familiarise yourself with what disputes occur, and then set about avoiding these problems
The latest data released by The Dispute Service (TDS) provides some guidelines on the scale of the problem caused by landlord and tenant disputes:
· The private rented sector (PRS) remains larger than the social rented sector in England, while smaller in Wales.
· The number of private rented homes has risen in England from 2.13 million in 2001 to 4.8 million in 2018 and in Wales from 90,000 to 204,000.
· The value of tenancy deposits has increased year on year from £885,098,501 in March 2008 to a total of £4,307,902,071 in March 2020.
· The value of the average deposit has increased from £880 in March 2010 to £1,040 [a drop from £1,108 in the previous year] in March 2020.
· There has been an increase in protected tenancy deposits with 924,181 protected in March 2008 to 4,141,467 protected in March 2020.
It is also important to note that dispute numbers have risen, with the following headline figures being of note:
Dispute numbers have risen
· Adjudications completed by all tenancy deposit schemes has risen from 458 in 2008 to 34,993 in 2020.
· Since 2013, the percentage of total deposits protected resulting in a dispute, across all tenancy deposit protection schemes, has remained low, ranging between 0.82% and 0.92%.
· Currently the rate sits at 0.84%.
Reasons for tenancy deposit disputes in TDS Insured property in 2019/20
· Cleaning 42%
· Damage 41%
· Redecoration 39%
· Gardening 23%
· Rent arrears 14%
If you are a tenant, you know the importance of cleaning, especially when it comes to claiming your deposit back. Therefore, you should develop a cleaning schedule that keeps the rental property in great condition.
As a landlord, you should look to do what you can to make cleaning easier for tenants. Investing in cleaning equipment for the rental property represents a small cost, but it might deliver great results for you and the tenant in the long-term.
All parties should review the terms and conditions of their agreement in great detail, and make sure there is agreement in place. Also, a professional inventory check at the beginning of the tenancy, again agreed by both parties, can save a lot of time and trouble later on.
With an agreed inventory check in place, tenants and landlords have a benchmark to consider when reviewing the property at a later date.
If you have any questions about the housing market, or you need assistance, please contact David Harris & Co today.
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