Landlords claim deposit protection is rigged against them

by Property118.com News Team

16:56 PM, 10th April 2012
About 7 years ago

Landlords claim deposit protection is rigged against them

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Landlords claim deposit protection is rigged against them

Tenant deposit protection is rigged against landlords and letting agents – while a large number of tenants are unaware of the scheme, according to a new survey.

Landlords are overwhelmingly against deposit protection – more than half (54%) claim the scheme favours tenants and more than a third (35%) consider no one benefits from the laws.

Letting agents agree with landlords, with 52% stating laws to safeguard deposits are balanced towards tenants, while 22% believe no one benefits from the red tape.

The findings come from research by inventory firm Imfuna, and are based on responses to questions about the new tenancy deposit protection rules that came in to force on April 6.

“The survey shows landlords are disenchanted with the deposit schemes. Not a single landlord surveyed felt they were designed in their favour shows that there is still some work to be done to ensure everyone involved feels they are supported in equal measure,’ said Imfuna creator, Jax Kneppers.

Awareness of the deposit schemes was highest among landlords (99%) and letting agents (88%) – but tenant knowledge was much lower, with just 43% aware of the law before starting a tenancy.

Just over a third (37% of landlords, compared to 78% of tenants, felt deposit schemes are an effective at minimising conflict between landlords and tenants.

The new laws came in to effect on April 6 and call for landlords to protect deposits within 30 days of the start of a tenancy and to supply a certificate with details about the protection scheme.

Failure to do so can mean a fine of up to three times the deposit value – and the tenant can claim compensation up to six years after moving out of a rented home.

Deposit schemes offer an arbitration process to landlords and tenants disputing the return of a deposit at the end of a tenancy.

The survey found that 26% of landlords, 26% of letting agents, and 57% of tenants believe deposit schemes provide a fair resolution to disputes.



Comments

Ben Reeve-Lewis

7:34 AM, 11th April 2012
About 7 years ago

Wow Imfuna's survey is heavy on statistics and here's another statistic I remember from a few years back. the reason depsoit protection was brought in was because only 14% of tenants actually got their deposits back when they left because so many landlords wre witholding them on spurious grounds.

The issue with it seeming to favour tenants I would imagine is based on another statistic, that landlords only win adjudication in 6% of cases but if you read the information provided by the schemes it is down to landlords not providing sufficient information in the correct form.

I have grave doubts about Imfuna's survey of the amount of landlords who know about protection. I have to repeatedly send out an email to landlords in my area setting what it is and how it works because they failed to protect because they didnt know about the legislation 5 years on. Amateur by to let landlords mainly, ignorance is still the main cause of non protection in my area but come 6th May that will no longer help them and I can only tell the ones who I get involved with - I cant put out a major ad campaign to warn them all about the deadline

8:29 AM, 16th April 2012
About 7 years ago

I find that the tenants that cause the most damage, simply fail to pay the last few months rent, before leaving me to sort out their mess

Tenants that caused hundreds of pounds worth of damage, got £490 0t their £500 deposit, I got £10, due to me doing them a favour letting them move in early, before my managing agent had completed the inventory, lesson learned.

Am I the only landlord to be owed tens of thousands, by low life tenants? I think not.

16:20 PM, 16th April 2012
About 7 years ago

I think you are correct., wrongun tenants are ripping off, (stealing). rent for millions of pounds a year.
You only have to see how much rent and damages are being caused on LRS.


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