Twitter Facebook RSS FEEDS

Deposits: Avoiding an end-of-tenancy dispute

Tuesday, 16 November 2010 4:59 PM

Few would have been surprised last month, when an online survey revealed that the most common cause of rental disputes is how much of the security deposit should be kept by the landlord at the end of a tenancy.

While unpaid bills and tenants redecorating without their landlord's permission were also found to cause frequent upset, the main bugbear was property owners holding back deposits to cover cleaning costs or repair damages.

The reason for so many disagreements occurring in this area is most likely the fact that many landlords and tenants do not fully understand their rights and obligations when it comes to paying a deposit – or giving one back.

If you're a landlord, you're required by law to protect all deposits with a government-approved scheme within 14 days of receiving it.

One such service, mydeposits.co.uk, allows landlords to hold onto the money during the tenancy – and gives them the freedom to discuss its return with the tenant without involving others.

Since the programme started in April 2007, more than 33,000 tenants have enquired about raising an issue – but only one-third of those initial queries have led to a formally-lodged complaint.

Eddie Hooker, chief executive of mydeposits.co.uk, which conducted the research last month, said: "The good news is the vast majority of tenancies end with no dispute raised. Communication between both parties is the key."

He went on to say that both landlords and tenants should always ensure that they understand their obligations under the Assured Shorthold Tenancy Agreement, as this could help them dodge the usual pitfalls.

What happens at the end of a tenancy?

Landlords will normally conduct an 'exit inspection' to confirm that the property has been left in an acceptable state. The deposit is then refunded in full, unless they can show good reason to withhold all or part of it.

Assuming that both the tenant and landlord agree on how much should be returned, the money should usually be given back within ten days of the agreement being reached – or the tenant making a formal request.

What if there is a dispute?

If a tenant is not satisfied with their landlord's explanation for withholding some or all of their security deposit, they can seek advice and assistance on how to resolve the matter from a protection service, such as mydeposits.co.uk.

Should this fail to fix the problem, a number of deposit protection groups offer a free and impartial Dispute Resolution Service to both tenants and landlords.

Related stories

Terraced flats in London

How students can get deposits back from landlords

Students at the end of their tenancy want their deposits repaid in full and in a timely fashion. This is how to see that happens.

 Emailing

Tenants warned 'look out for rental fraudsters'

New figures from the Property Ombudsman suggest that 5,000 tenants have been affected by rental scams this year.
Pile of money

Tenants struggle to get onto 'rental ladder'

According to a leading estate agent, many landlords are now insisting that tenants earn 30 times their monthly rent.

 Holding cigarette above ashtray

Warning: smoking can seriously damage your wealth

Research shows buyers and renters think twice about moving into property previously occupied by smokers.
Man working at computer

New site launches for private tenancy agreements

A new site has launched claiming to be the “legally watertight” way for landlords and tenants to enter a private arrangement.

 Belfast city centre from above

Rent increase in Belfast may only be short-term

Rents in the Northern Irish capital are up 4.2 per cent on last year – but with legislative changes due in October, this may not last.
Seventy per cent of tenants say the current market favours landlords.

Rent increase expectations now at record high

Six out of ten private tenants expect rent rise as demand outstrips supply, says Rightmove.

 Rents have hit an all-time high in many London boroughs.

Landlords warned to be realistic on rents

Rents in London now unsustainable for tenants while rents in much of rest of UK still lower than in 2008, say letting agents.

Terraced houses

Rental properties only cater for 12% of applicants

Demand is outstripping supply to an extreme extent - and landlords are failing to take advantage, reports a national lettings group.

 Man hoovering property

The most common causes of deposit return hold-ups

Find out the most common reasons for landlords withholding all or part of a tenant's rental deposit.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

A guide to finding the right kitchen sink

When redesigning a kitchen or giving the room a makeover, it is important not to forget about the less obvious aspects of the space. Kitchen sinks are an essential fitting, but often overlooked, despite the fact there is a wide choice of styles available.

Useful tips to help find a flat in London

Looking for flats in London can be a frustrating process, given the capital's size, demand for rental accommodation and varying prices. It is vital, therefore, that you do plenty of research and act quickly to ensure you get the place that you want.

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.