A leading organisation in the rental sector has called for more concrete rules to be introduced for landlords to efficiently calculate compensation charges at the end of tenancy agreements.
The Association of Independent Inventory Associations (AIIC) believes that landlords could be saved unnecessary troubles with the introduction of clearer rules. In addition, the AIIC believe that the number of disputes would be heavily cut if landlords and agents alike had a suitable understanding of the principles surrounding compensation charges.
Fairness
A firm set of rules would enable landlords to explain to their tenants how they have calculated any compensation costs. Chair of the AIIC, Pat Barber, suggests that, ‘all parties would be happier to accept proposed deductions if landlords and agents could prove how they arrived at their figure.’ She believes that this would mean, ‘fewer disputes and headaches and less time, effort and money being wasted.’[1]
Ms Barber thinks that to begin their calculations, landlords should look at features such as an item’s original cost and the cost when the tenant moved in. Furthermore, she suggests that landlords need to know about circumstances surrounding damage to an item and the length of the tenancy before working out any charges.
Common causes for disputes
One of the largest issues in terms of disputes is problems with accidental damage to floor coverings. Somewhat surprisingly, this amounts to 42% of insurance claims.[1]
Barber suggests that scratches, burns, marks or stains are all chargeable issues for landlords. However, tenants have argued that issues such as these are sometimes constitute simple wear and tear. The AIIC recommends that landlords give sufficient care instructions for all types of flooring.
Considerations
Any compensation amount that landlords calculate should take into account wear and tear, household issues and whether or not tenants have pets that could have added to a problem. Ms Barber states that, ‘tenants and landlords should put all the evidence together to reach a conclusion that can be justified in writing.’ [1]
She also suggests that, ‘landlords should also provide written evidence of the original item’s cost and the age as well as anything else in the property to enable a compensation figure to be calculated.’[1]
[1] http://www.accommodationforstudents.com/view_landlord_guides.asp?id=2549