Since 2007 it has become mandatory for all tenant deposits to be registered with a protection service such as the DPS, TDS or MyDeposits.
The Deposit Protection Service has safeguarded the deposits of more than two million tenants totalling £1.1bn since it launched with the deposit pool currently standing at £550m representing 720,000 active deposits.
The schemes were designed to prevent unscrupulous landlords deducting whatever they wished from a deposit leaving tenants helpless. They now give tenants the opportunity to dispute the deductions a Landlord wishes to make meaning a third party will deide what deductions are reasonable.
This system, however, is leaving Landlords feeling vulnerable as the schemes are deciding heavily in favour of the tenants on dispute with the burden of proof being on the landlord to show that the deductions are necessary. Statistics show that only 19.1% of adjudications through the DPS decided in favour of the Landlord raising questions as to the reoliability of the services. It is therefore becoming increasingly difficult to make deductions for damage caused by a tenant on vacation. Tenants are also becoming increasingly aware of their rights and they know that if they dispute there is a very good chance that they will win. What have they got to loose?
Many Landlords leave themselves open to pay for damage caused by the tenant because they do not know what is required. For example, a valid Tenancy Agreement, signed inventory and signed inventory photographs are essential as evidence showing the condition of the property at the commencement of the term. Without a Tenancy agreement or Inventory it is impossibl to expect to win a dispute that goes to arbitration. These are just two of the requirements needed to give yourself a fighting chance of being sucessful in arbitration.
If you have any questions regarding a deposit or a dispute we have been on courses and can offer sound advice.
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