Camberwell Landlords – Dealing With Deposit Disputes

31st December 2019 posted in Landlords Tenants

Disputes between landlords and tenants can be highly damaging and deeply frustrating for all concerned. While many people in the lettings industry have realised landlords and tenants benefit when they work together, sadly, recent research suggests there has been an increase in deposit disputes in the past three years.

This research, carried out by Ome, indicates poor or no communication when holding on to a deposit is the most common cause of deposit disputes. Another common complaint is the standard of the rental property, with a lack of cleanliness and damage at the property being major issues between a landlord and tenant.

Tenants and landlords will have disagreements

The research indicates the number of disputes submitted by tenants has increased in the past three years. However, the number of escalated conflicts making it to the adjudication stage, as a percentage of total disputes, has fallen year on year. In 2019, the rate fell by 2.6% alone.

In the previous year, there was a total of 9,323 disputes raised with mydeposits, but just 5,792, which represents 62.1% of the conflicts, make it to the adjudication stage. The year before, 64.7% of disputes made it to the adjudication stage, and the year before that, the figure was 66.4%.

It is believed the drop in disputes requiring adjudication reflects then growing drive to resolve matters as early as possible, and through the use of negotiation. There is enough evidence to suggest both landlords and tenants realise clear communication can resolve issues quickly, and hopefully, this trend will increase in years to come.

Know what causes problems between landlords and tenants

Of course, to reduce disputes, it is imperative to know what causes problems between landlords and tenants. Research into issues found 30% of disputes are down to tenants not receiving any feedback from landlords as to why they aren’t receiving their deposit back.

In 23% of disputes, the perceived cleanliness of the rental property was cited, and in 18% of disputes, damage in the rental property was marked as the cause of dispute between landlord and tenant. Other issues which were cited include redecoration work, missing items, replaced items, bills and outstanding rent arrears.

Matthew Hooker is the co-founder of Ome, and he said; “The return of a deposit can often be a cause for an otherwise fantastic tenant-landlord relationship to sour and the stats show that the leading reason for this is poor or lack of communication. The sector is starting to provide solutions to these friction points and technology is helping to create a more transparent end of tenancy process.”

We know the relationship between landlords and tenants can often be confrontational, but this doesn’t have to be the case. Things run more smoothly for landlords and tenants when everyone works together, and at Hunters Camberwell, we are more than happy to assist with this process.

If you are a landlord in or around Camberwell, and you need assistance managing your rental property, please get in touch. We are delighted to say we have assisted many Camberwell landlords, and if you need help, contact Hunters Camberwell today.