Tenancy Deposits Don’t Work
Landlords and Tenants Claim That Deposits Don't Work
40% of all UK Private Rented Sector (PRS) tenants have reportedly lost some or all of their rental deposit at the end of a tenancy, but landlords aren’t winning either, says a new report.
The total amount lost per person averaged £313 (GBP) according to a new survey conducted by online property portal – FindaProperty.com.
The report highlighted a breakdown in communication between landlords and tenants and cited them as the key reason for problems, with 20% of tenants claiming damage was caused by previous tenants.
Sim Sekhon of landlord specialist service provider Legal 4 Landlords said: “It’s vital that landlords conduct proper tenant referencing prior to sitting down with approved tenants and getting them to read and agree to all clauses and stipulations in their tenancy agreements (AST) before signing it and tenants should review it throughout the term of their rental contract, especially when it comes time to move out of the landlords rental property.”
The research uncovered the most common reasons why tenants do not get the full amount of their deposit back as
- Inadequate cleaning
- Property damage
- Unreasonable wear and tear
- Poor garden maintenance
In order to avoid disputes, letting agents may want to ensure new landlords are aware of the importance of completing tenant referencing and conducting proper inventories and where possible landlords should seek Rent Guarantee Insurance .