Dealing with End Of Tenancy Deposits

When it comes to the end of any tenancy, the main issue that needs to be sorted out is the return of the tenancy deposit. These negotiations can be time consuming and complex, but there are things that can be put in place to try and make this process quicker and simpler for Landlords, Agents and Contract Holders.

The tenancy deposit is paid by the Contract Holder at the start of their occupation of the property, and has be registered with a Government approved scheme such as the TDS or DPS within 30 days of the start of the occupation contract. The Contract Holder must be given the details of where the deposit is registered, the ID of the registered deposit and the prescribed information outlining the persons paying the deposit and what it can be used for at the end of the occupation of the property. Failure to follow this initial process will leave the Landlord/Agent in a tricky position at the end of the tenancy should they wish to make a claim from the deposit funds.

Below is our quick step by step guide to make your life simpler when it comes to dealing with the deposit return:

1. Always hand the property over in as good condition as possible. Research shows the better condition the property is when the Contract Holder takes occupation, the more likely they are to return it to you in good condition.
2. Ensure you prepare a full professional inventory of the property including photographs and text outlining the condition of all areas of the property including the fixtures and fittings. Ensure that a copy of the inventory is given to the Contract Holder in advance of their occupation date, and ask them to check, sign and return a copy of the inventory within 7 days of the start of their occupation.
3. Carry out regular routine inspections of the property throughout the occupation, to ensure that the property is being well maintained and any issues can be dealt with before the end of tenancy inspection.
4. Action any maintenance requests from the Contract Holder during the occupation promptly and efficiently.
5. When the Contract Holder advises you that they will be leaving the property, inform them clearly and concisely what you expect from them in terms of the property condition, cleaning, rubbish removal and garden maintenance. By getting this information over to them at an early stage will reduce the time to process the deposit return once they have vacated the property.
6. Carry out a formal checkout inspection including photographs and text after the Contract Holder has vacated. Compare this to the original inventory and then draw up the items that may potentially result in a claim from the deposit such as cleaning, damage, rubbish not removed, garden maintenance or decorative issues. Send your proposal to the Contract Holder including estimates for getting these issues rectified and ask the Contract Holder for their agreement that these costs can be deducted from the tenancy deposit.
7. Always allow for fair wear and tear within the property, and beware of ‘betterment’ – you cannot expect to have the property returned in a better condition than when the Contract Holder received it. An example of this would be asking a Contract Holder to get all carpets professionally cleaned if there is no evidence that they were professionally cleaned at the start of the occupation contract.
8. Only claim for what is required e.g. if one wall needs repainting then the cost should relate to the one wall rather than claiming for a whole room to be repainted.
9. Communicate clearly and factually with the Contract Holder, providing photographic evidence where required.
10. If no agreement can be reached, then refer the matter to the Deposit Holder for their arbitration. Remember to include all documentation including inventory, inspection reports and the checkout inspection.

A final recommendation would be that you should never allow the Contract Holder to pay any element of rent from the tenancy deposit as this may result in there being insufficient funds to cover the matters requiring attention as a result of the checkout inspection report. Any rent arrears issues should be resolved before the end of the occupation where possible.

Smart Letting Solutions provide ARLA Accredited Inventories, Checkout Inspection Reports and End Of Tenancy Cleaning Services in Swansea and surrounding areas.