Tenant Deposit Disputes
Recent figures from one of the U.K’s rental deposit schemes showed positive news on tenancy deposit disputes. The figures suggest that only a fraction of tenancy agreements end in disputes over deposits.
The Deposit Protection Service (DPS) stated that a mere 8,495 out of a total 1, 105,619[1] tenancies ended with its adjudication service having to be used. These totals work out at a percentage of just 0.81%.
Figures
For all tenancy agreements which ended going through a full dispute process, the figures from DPS make interesting reading. Over half (54.7%) of deposits disputed through DPS were split equally between landlord and tenant. Almost 27% of deposits were refunded in full to tenants. The figures show that only 18.5% of deposits returned by DPS were paid to the landlord or letting agent.
Common disputes
DPS states that the most common dispute derives from alleged property damage. Other common reasons for a dispute are cleaning (or lack of) and the need for redecoration. Less common requests released in the DPS findings include a dispute over the removal of cockroaches.
Dispute warning
DPS director Kelvin Firth issued a warning on the back of the report findings. Firth warns that landlords and agents were similarly as worried as tenants about having a disruptive tenancy agreement. ‘Tenants as well as landlords should be warned,’ Firth said, that they cannot simply, ‘fail to fulfill tenancy conditions’ and then, ‘look for a deposit pay out.’
[1] http://www.lettingagenttoday.co.uk/715-tiny-proportion-of-tenancies-end-in-deposit-dispute
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