Landlords holding back on tenants

Its research found disputes over damage, late payment of rent and unpaid bills were some of the most common gripes that lead to the breakdown in the landlord/tenant relationship, with 56 per cent withholding some or all of the deposit.

Top grievances that cause landlords to charge their tenants include:

• Property damage (26 per cent)
• Missed rental payments (25 per cent)
• Cleaning costs (22 per cent)
• Furniture damage (21 per cent)
• Unpaid utility bills (15 per cent)

Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, commented: "Being a landlord means gaining not just an additional property, but all the responsibilities that come with tenants living there. Landlord/tenant disputes can unfortunately happen all too often. Agreeing on an inventory, taking photos before tenants move in or employing a letting agency can minimise the risk of any arguments."

April saw the introduction of the Tenancy Deposit Scheme, set up by the government to benefit both landlords and tenants for precisely these reasons. It is designed to protect the tenant's deposit, as well as providing an impartial resolution process for those cases that have got out of hand. There is a legal obligation for all landlords in England and Wales to join one of the schemes nominated by the government.

However, when questioned, over half (53 per cent) of all landlords were unaware of the scheme, and a further quarter (23 per cent) were aware of it, but didn't really understand what it meant for them. Just 24 per cent knew about the scheme and understood the details.

Despite it being a legal obligation for landlords to participate, a staggering six in ten (63 per cent) landlords in the South East and Eastern England knew nothing about it – the most unaware in the UK. Landlords in Wales, however, scored top marks, with 59 per cent aware that this scheme was being introduced.

When questioned on whether they would be using one of the schemes, three in ten (29 per cent) wanted to know more about it, but one in five (17 per cent) were happy to hand the responsibility to their letting agency to make the decision on their behalf.

Claridge continued: "The Tenant Deposit Scheme is designed to give both tenants and landlords peace of mind, and in the event of any dispute, all cases will be treated fairly. This should make both renting and letting a less stressful experience overall, and hopefully the landlord/tenant relationship should shake off the traditional image of warring partners."