0:02 AM, 18th May 2023, About 10 months ago 9
Hello, with all the ‘multi-agency landlord bashing’ that seems to be going on at the moment, I’ve been giving some thought about the stage when existing tenancies end and new tenancies begin. My concerns revolve around deposits when a new tenancy begins.
Generally, a new tenant will pay a ‘deposit’ of one month’s rent + one month’s rent in advance. My perception of this arrangement is that it’s rapidly heading to being totally inadequate. Given the average value of a typical house in England is £300k+, how can a combined deposit and one month, totalling around 0.75% (at 1100pcm) be considered adequate?
I’d be interested to learn other Property118 reader’s thoughts on this as I expect things are only going to head further downhill. Are readers implementing higher financial expectations in terms of deposits? Has this impacted the number of tenants arranging viewings due to affordability? What about the vetting of prospective tenants? If you have increased, has this raised prospective tenants’ expectations? Have readers adopted any other, stricter requirements?
A lot of questions here to address but surely, I’m not the only landlord that is thinking about these things a lot more than I ever did previously.
For context, the driver behind these questions is a recent tenant (who we personally knew) that managed to leave a dreadful mess of damage behind them. The property was in mint condition beforehand and despite a no-pets policy, they brought in a large dog that had a voracious appetite for doors, kitchen cabinets, bath panels, carpet etc. Retention of the deposit was our only recourse which didn’t come close to restoration.
As an aside, it may also interest readers of the rental market in Italy where my sister-in-law lives. Properties there are commonly provided in what I would describe as ‘bear wall’ condition. That is, no kitchen cabinets, no bathroom appliances, no internal doors, and no floor coverings – unless the previous tenants leave in a hurry and abandon some of the above. Of course, the ‘fabric’ of the property could get damaged but anything over that would be self-defeating for the tenants.
Question is, could this Italian model be adopted here in the UK?
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