Some disputes arise because the landlord unfairly withholds the deposit. However, a growing number of reputable landlords who find tenants have damaged their property at the end of a tenancy are having to dig into their own pockets because they do not have enough evidence to justify withholding all or some of the deposit.
Landlords are entitled to withhold deposit money to cover damage beyond fair wear and tear that tenants cause during a tenancy. Under deposit protection legislation, tenants can now formally dispute the amount withheld. If the landlord cannot provide evidence of damage or failure to clean, tenancy deposit protection schemes will often have no choice but to find in favour of the tenant.
Figures from mydeposits.co.uk for the third quarter of 2008 show that out of 125 disputes dealt with by independent adjudication, tenants received all or part of their deposit back 91 per cent of the time.
Tenancy deposit protection legislation was introduced to protect the rights of tenants by ensuring deductions from deposits are genuine. The onus is on the landlord to show any money being withheld is for a good reason.
David Salusbury, Chairman, mydeposits.co.uk, commenting on the latest figures, said: "Landlords who genuinely need to withhold a tenant's deposit at the end of a tenancy are able to do so, but they must take some simple steps to show any deductions are justified and proportionate. Preparing an agreed inventory with the tenant will provide evidence of any damage to the property or furniture, while bank statements can be used to highlight non-payment of rent. Photographic records can also be useful, as can any exchanges of correspondence.
"The vast majority of tenancies end harmoniously but when problems do arise landlords need to be prepared to safeguard themselves against abuses of the system. Although the deposit remains the property of the tenant, landlords should not find themselves paying for any tenants' misdemeanours out of their own pockets."
