Latest in Lettings Issue 2.
We are devoting this issue of Latest in Letting to the Tenants Deposit Protection which became law in England and Wales on 6th April this year.
CAUSE
OCTOBER 6th is the six month anniversary of the Tenancy Deposit Scheme that came into force in April. Every Assured Shorthold Tenancy began or extended in writing on or after that date will be affected.
EFFECT
MANY LANDLORDS will not be able to recover the full costs of damage, repairs or the cost of replacing missing items because of a poorly prepared - or worse still the absence of any - Inventory and Schedule of Condition. Failing to deal with tenants reasonable requests for repairs .on a timely basis. and not telling them what to expect at the end of tenancy check out will also add to the misery!
PANIC STATIONS
WHAT HAVE YOU DONE with your tenants deposit? Have you told your tenants what.s happening with their deposit? If the answer is no to one or both of these questions you must act NOW. Your tenants deposit must be .protected. by one of the three firms of Scheme Administrators.
All the details of the Scheme including your obligations can be found at http://www.communities.gov.uk For advice and guidance contact the Residential Landlords Association, your local authority Tenancy Relations Officer or a reputable letting agent.
DON'T DELAY the penalties for non-compliance are severe.
DAMAGE LIMITATION
Check that all repairs resonably requested by the tenant have been dealt with.
Put the Inventory and Schedule of Condition in a Tenancy Check Out file as soon as you know the tenant will not be entending the tenancy.
Prepare pre Check Out Instructions for the tenant. Set out in detail (a) the standard of cleaning you expect, (b) disposal of rubbish, (c) attention to garden and property exterior.
Prepare a blank Check Out Report detailing each room in the order of the Inventory so that discrepancies can be noted as the check out takes place. Make space on the report for meter readings and the tenants forwarding address.
Take a camera to the check out and photograph if appropriate.
Make sure you - or your agent - and the outgoing tenant signs and dates the report.
Immediately after check out assess the reasonable costs of dilapidations and endeavour to agree these with the tenant within 10 days from the end of the tenancy.
Pay the disputed amount to the Scheme Administrator or if the deposit has been paid into the custodial scheme inform them of the details.
Prepare you claim with supporting documents as required by the Scheme Administrator. This may include:
- Confirmation that every effort has been made to agree the claim with the tenant
- Copies of the ingoing and outgoing inventory/checkout report
- Photographs for support - preferably signed, definitely dated
- Copy of the original Tenancy Agreement
- Details of the claim together with estimates, invoices and receipts, or by reference to published catalogues such as ARGOS or IKEA
HOW TO DO BETTER NEXT TIME
Before reletting your property carry out any necessary repairs, redecoration and garden tidying. Remove and replace items that are in poor condition. Ensure the property and any contents are Really, Really clean.
Get a detailed Inventory and Schedule of Condition drawn up preferably by an independent inventory clerk. If you do prepare your own inventory take photographs . not forgetting the garden.
Lastly make sure that the tenants are given 2 copies of the inventory. Inform the tenants, preferably in writing, that one copy must be signed, dated and returned to you by them within 7 days of the start of the tenancy.