How to reduce conflict at the end of the tenancy.
July 11
When a tenant gives notice to leave a rental property, they are expecting to get their deposit back. Equally any landlord will expect their property to be returned in the same condition as when it was let, or they will want to use the deposit to cover costs. Potentially an anxious time for both parties, but one which Regent Lettings take every care to ease through paying careful attention to the correct processes right from the start of the tenancy.
When these processes are not followed, things can quickly go very wrong, as this example shows, in this instance where a (non-Regent Lettings) property was let directly through a landlord:
Peter had been sharing a house with three friends. He, and subsequently two other friends, moved in took over the tenancy, with the landlord's blessing, from previous tenants.
They had a few problems - a hot water tap broke and took four months to fix, and such severe mould grew in the bathroom that the boys considered calling the local Department of Health.
When Peter and his buddies decided to surrender the tenancy in full, they tidied the house as only young men can, closed the door and walked away. That's when the problems started.
The landlord stated that he had left a fully equipped property (kitchen equipment too) and that it had been immaculate – including the garden – but he can't prove it.
But, when Peter moved in, he says none of these items were apparent and the garden was a mess – but he can't prove it.
Peter also can't prove that the tap and mould were reported or resolved in good time because he had only reported the problem by telephone and not followed up in writing. He says that he inherited the problem but, as the landlord stated, it can't have been that bad because he moved in!
So what had gone wrong? There was no tenancy agreement and no inventory. Not all parties paid a deposit. No dilapidations were calculated when any of the tenants moved out – a new tenant simply took on the responsibility of that previous tenant.
Peter's deposit covered 1.5 times his share of the rent and had been lodged with the DPS. Under the terms of the DPS, this landlord is on difficult ground since he did not provide an inventory and has no proof of the condition or contents of the property. The landlord is, unsurprisingly, keen to settle the matter 'amicably'.
As the landlord only had deposits from two of the final set of tenants, if they broker any agreement on dilapidations he can only recover part of those from these deposits because he did not receive any confirmation in writing from them that they took on all responsibility from the old tenants or that they understood that they were now responsible in full. It appears that there may have been as many as 10 people living at the property in the duration of the tenancy. This means the maximum amount recoverable for the Landlord would only be a tenth of any item, assuming tenancy periods had been approximately the same! And having no legal agreement, neither the landlord nor the tenant can refer back to it to identify responsibilities.
The majority of landlords are responsible, law abiding people. In fact, this landlord stated that he hadn't wanted to bother with an inventory because he didn't want to incur any expense or inconvenience for either party! A nice, but foolish, sentiment.
The DPS response will make for interesting reading. It would be fair to say that the landlord acted irresponsibly and did not protect himself in any way. Equally, the tenants took risks. They left themselves very exposed and were grateful at not having to sign any tenancy agreements – more time for socialising. The situation is not yet resolved but what is clear is that neither of the parties will be happy with the outcome.
At Regent Lettings our primary aim is to do all we can to remove the risk of conflict for both parties involved. We take time to ensure that both landlord and tenant are given clear and correct expectations of the process and obligations involved.
It is this attention to detail which has meant that in three and a half years, only one deposit has been referred to the Deposit Protection Service for arbitration.
We have a clear and established process to reduce conflict at the end of the tenancy.
- Before any agreement is signed the tenant is sent a Reservation Letter outlining any special conditions, for example, a pet clause, which confirms the requirement for the carpets to be professionally cleaned at the tenancy. There may be special clauses relating to permission for a tenant to redecorate or for particular care required to maintain appliances.
- If a landlord is bringing a property to the rental market for the first time, Regent Lettings strongly recommend that the property is professionally cleaned. A clause can be written into the tenancy agreement that the tenants must also have the property professionally cleaned upon vacation, thus maintaining the standard required.
- At the commencement of the tenancy an Inventory and Schedule of Condition report is arranged. This is drawn up by a third party company and gives an impartial assessment of the property. They can act as a mediator between tenant and landlord and will judge any dispute fairly and equitably, which saves the landlord time, energy and possible sleepless nights – especially if they are located far away or abroad. The report is sent to both landlord and tenant and there is the opportunity for any comments to be noted within seven days. This report is held on file.
- The tenant's deposit is lodged with the Deposit Protection Scheme. (DPS)
- Regent Lettings take time to explain the tenancy agreement and the obligations of both tenants and landlords right at the beginning. In a managed property Regent Lettings will also visit a property on a regular basis, providing an opportunity to remind tenants of their responsibilities and to encourage them to keep standards of cleanliness high.
- Once a tenant has given notice, they receive a letter to remind them of their obligations under their tenancy agreement and agreed inventory. This includes returning the property and its fixtures and fittings – including windows, carpets and the garden - to the same standard as at the start of the tenancy, allowing for fair wear and tear.
- If a tenant in one of our managed properties is unsure of exactly what is required, Regent Lettings may make a property visit to advise and perhaps recommend cleaners and gardeners if extra help is required.
- Once the tenant has returned the keys to a property, Regent Lettings arranges the check-out inventory for the next working day. The inventory clerk takes into account any comments previously made on the check-in report by both the landlord and the tenant. A copy of the check out report will be sent to both parties.
- If the landlord is happy with the condition of the property he gives Regent Lettings permission to instigate the release of the deposit to the tenant.
- In any deposit dispute, it is the DPS who provides arbitration. They will release deposits to tenants, but retain any part that is in dispute whilst awaiting arbitration.
For more information, contact the team at Regent Lettings on 01635 37222.
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