Posts with tag: inventories

Inventory Firms Join Property Redress Scheme

Published On: June 3, 2016 at 11:33 am

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Two of the largest inventory firms in the country have now joined the Property Redress Scheme in order to ensure their customers’ rights are met.

Inventory Firms Join Property Redress Scheme

Inventory Firms Join Property Redress Scheme

All landlords must compile an inventory before tenants move into their rental property. The document details the condition and contents of the property at check-in, allowing tenants to see exactly what they are getting. It can then be used at check-out to ensure that the tenants are returning the property in the same condition they found it in.

If the tenant agrees to the inventory, the possibility of a dispute arising at the end of the tenancy is reduced, enabling the landlord to enjoy a much more risk-free rental period.

The inventory should include written notes and photographic evidence, as well as details of the contents, including fixtures and fittings. All of this will be helpful in supporting a claim on the tenant’s deposit, because, if a disagreement does arise, a decision to resolve the matter will be based on the evidence provided by both the landlord and the tenant.

Failure to provide appropriate evidence may result in the landlord finding themselves out of pocket.

Using an independent inventory company will ensure that the report is unbiased. However, if you are unhappy with the service provided by your chosen firm, you can now hold them to account – the Association of Independent Inventory Clerks (AIIC) and VeriSmart have joined the Property Redress Scheme.

The AIIC, which was founded in 1996 and is the UK’s largest membership organisation for independent inventory clerks, offers specialised training and support for inventory professionals, while VeriSmart is a market leading smart inventory provider, operating in over 40 locations across the UK.

The Chairman at the AIIC, Patricia Barber, says: “We have over 700 members nationwide, who are expected to work to the highest standards. We are delighted to join the Property Redress Scheme, who are doing such an important job for the property industry, protecting consumer rights and educating property professionals about industry best practice. The AIIC are looking forward to working together with the Property Redress Scheme to further this aim.”

The Chairman and founder of VeriSmart, Jonathan Senior, adds: “VeriSmart is the largest licensed business in the smart inventory sector. We are very pleased to be working together with the Property Redress Scheme, making sure our customers’ rights are met and also helping to improve standards within our industry.”

The AIIC and VeriSmart are joining over 20 other independent inventory firms as members of the scheme, in addition to over 4,500 letting and estate agents.

Landlords seeing more dirty properties at checkout

Published On: May 25, 2016 at 10:45 am

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A concerning new report has revealed that buy-to-let landlords are facing increasing problems with dirty properties at the conclusion of tenancy agreements.

The investigation, conducted by online letting agent PropertyLetByUs, has uncovered the items most frequently left in a poor condition by outgoing tenants.

Dirty properties

Mucky ovens were discovered to be extremely common, with 56% of agents reporting that they had faced this issue. Next came dirty carpets and flooring (25%), grimy showers (21%), smelly sinks (19%), full fridges and freezers (18%) and grubby baths (14%).

Shockingly, 70% of landlords said that their rental properties were returned to them in a poor condition after their tenants had moved out.

Over half of cases dealt with by the Tenancy Deposit Scheme are associated with cleaning. In fact, disputes over cleaning are now at their greatest level since the beginning of the scheme. This in turn means many investors are claiming more on their landlord insurance.

Lack of respect

PropertyLetByUs.com suggests that tenants have little or no respect for their rental home.

Jane Morris, the firm’s managing director, said: ‘unfortunately tenants fail to treat a rented property like they would if it was their own home. Many tenants fail to leave their property in the same condition as when they moved into the property and we have seen many properties left in a filthy state.’[1]

‘The main problems are dirty ovens and fridges; stains and marks on carpeting and flooring; bathrooms which have not been cleaned for months; and pet hair and excrement on floors, furniture and soft furnishings. At a recent check out, the property was left in a very poor condition. No cleaning had taken place during the tenancy and the ovens, carpets and the bathrooms were filthy. Unwanted furniture was the left in the house and strewn across the garden,’ she continued.[1]

Landlords seeing more dirty properties at checkout

Landlords seeing more dirty properties at checkout

Costly

Morris went on to claim that, ‘some tenants claim that cleaning issues are just normal wear and tear and are shocked when they find out that it will cost around £50-£70 to have the oven professionally cleaned and anything between £100-£150 to clean carpets and floorcoverings. The simple answer is that if an area or item was clean at check-in it should be left clean at check-out. If any dust or crumbs are present then this is clearly not clean.’[1]

‘It’s vital that landlords carry out mid-term inspections so they can flag up any cleaning issues, as well as a thorough check-in and check-out, so they have the right proof of condition at the start and end of a new tenancy agreement. At the check-out, the tenants should be made aware of the areas requiring cleaning and the potential costs involved,’ Morris concluded.[1]

Importance of inventories

The rise in landlords being left with dirty properties come check-out time underlines the importance of inventories. Landlords must produce a detailed inventory at the beginning of all new tenancy agreements, with photographs of all rooms in the house.

This will not only let landlords cross-examine during regular inspections, but will also be imperative should any dispute occur. Buy-to-let landlords should ensure that their tenants are given a copy of an inventory, which they have signed, before entering into an agreement.

[1] http://www.propertyreporter.co.uk/landlords/landlords-face-big-clean-up-at-check-out.html

Deposit Expert Advises Landlords on Best Practice

Published On: April 25, 2016 at 11:34 am

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“There’s no magic formula for avoiding tenancy deposit disputes,” says My Deposits’ Simon Lacey.

However, there are steps that you can take to avoid issues at the end of a tenancy.

It is not only a legal requirement for landlords to protect their tenant’s deposit within 30 days of receipt, it is also in your best interest to protect your property investment and lettings business.

Lacey insists that the most important thing to remember when raising a dispute is evidence: “If you’re going into court, the judge wants to see evidence. Because in law, it’s the tenant’s deposit, and if you want to make deductions, you have to show there’s a breach of a particular clause that means you’ve suffered a loss.”

“There’s no prize for guessing the main dispute cause – cleaning,” he continues.

Cleaning problems are evident in most deposit dispute cases that My Deposits deals with. “It all centres around what expectations are at the beginning of the tenancy,” Lacey explains. “Set the expectations to the tenant in writing of how the property is taken.”

This should be included in your inventory, which can be completed by landlords, letting agents or a third party inventory clerk. The adjudicators will use this document to ensure there is no bias toward the landlord. If you create the inventory yourself, you must get the tenant to sign it or acknowledge receipt in some way. The tenant then has seven days to inform you of their agreement/disagreement of the condition of the property stated in the report.

Deposit Expert Advises Landlords on Best Practice

Deposit Expert Advises Landlords on Best Practice

“The next biggest issue we have is redecoration,” Lacey continues. “Damage, not so much, missing items, occasionally. We don’t see many rent arrears cases at the moment, and you must note that tenants cannot raise a dispute if they are in rent arrears.”

Lacey advises landlords to use the same inventory at check in and check out so that it is easy to compare and note the differences. He also urges you to embed photographs in the document, which should be taken from the same spots before the tenants move in and after they move out.

The inventory should detail the condition and cleanliness of the property at the start of the tenancy. If you have had the property professionally cleaned before the tenants move in, it is advised that you provide a copy of the receipt to the tenants, so that you can expect them to return it professionally cleaned at the end.

If you state that you will accept a domestic clean, you must explain what this means – we all have a different idea of what is clean. If you detail this in the inventory, the tenant will know how to return the property. If they return it in a substandard condition and a dispute is raised, the adjudicator can “build a picture from the day the tenant moves in to the day they move out” through your evidence.

You should also compile a comprehensive report of any problems that have arisen throughout the tenancy. If you have any reports from contractors or notes from periodic inspections, they should all be included.

When recording each item in the property, remember to keep inventories up to date. You may need to replace an appliance in the property, so the inventory must be updated when you do so. If it is not included in your documents, the adjudicator will not know what you put in.

“Videos or photographs aren’t evidence alone,” says Lacey. “Written descriptions should explain where problems in the room are and the size of problems.”

If a deposit dispute does arise, Lacey insists that you must “keep a dialogue with your tenants, show that you are trying to resolve the issue”. As tenants can raise a dispute up to 90 days from when they move out, it is vital that you keep a record of communication during this period.

“99.9% of landlords are fair to their tenants,” he says. “But every time a nice tenant moves in, 12 months down the line, they might not be such a nice tenant, so you need to keep evidence from day one.”

You may like to provide your tenants with a moving in pack at check in so that they know what they can and can’t do – this will also be used as evidence at the end of a tenancy.

But the main thing to remember?

“The main document you need is a robust tenancy agreement that is signed by the tenant with relevant clauses,” Lacey explains. “The second most important is the inventory.”

Take all of these tips on board to ensure best practice and you should avoid losing money in the future. Remember to always keep copies of evidence, and the dispute will be resolved.

Deposit disputes reach highest ever level

Published On: April 4, 2016 at 9:24 am

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Concerning new figures released from the Tenancy Deposit Scheme reveals that deposit disputes are at their biggest level since records began.

The figures indicate that in 2015, year-on-year adjudications rose by 11% to 27,816. This was 2,787 more than in 2014. In the past five years, adjudications have jumped by 36%.

Reasoning

Further data from the TDS indicates that damage, cleaning and redecoration are the biggest reasons given for a deposit dispute. In cases given to the TDS during 2014-15, cleaning was highlighted in 58% of cases, with damage appearing in 52%.

The table below shows how the number of adjudications completed has risen over time:

March 2008 458
March 2009 8,098
March 2010 20,363
March 2011 18,156
March 2012 20,279
March 2013 24,448
March 2014 25,029
March 2015 27,816

[1]

Deposit disputes reach highest ever level

Deposit disputes reach highest ever level

Worrying

Jane Morris, Managing Director of PropertyLetByUs.com notes that, ‘these statistics are worrying and send a clear message to landlords and agents-this problem is not going away until they are better protected at the start, during and at the end of a tenancy agreement.’[1]

‘It is vital that landlords and agents ensure they get all the paperwork right at the start and at the end of a new tenancy agreement. The reality is that some landlords are failing to put a letting contract in place, or they have very unfair clauses in the contract. Other landlords don’t conduct an adequate check-in and check-out, or don’t keep copies of correspondence with the tenant which could provide important evidence in a dispute,’ Morris continued.[1]

Concluding, Morris said, ‘landlords are agents also have a thorough and detailed inventory which will enable both parties to be treated fairly and reasonably. This documentation will help resolve potential disputes and prevent them reaching the courts.’[1]

[1] http://www.propertyreporter.co.uk/landlords/deposit-disputes-at-highest-ever-levels-recorded.html

More deposit disputes going way of landlords

Published On: March 24, 2016 at 12:04 pm

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New data has indicated that more landlords and agents are being awarded 100% of disputed amounts at adjudications than tenants. This is the first time this has happened since the inception of the tenant deposit schemes in 2007.

Pay-outs

Figures from the TDS show that last year, 19.8% of all disputes raised by landlords or letting agents resulted in a 100% pay-out to them. 19.2% of all disputes made by tenants resulted in them receiving a full pay-out. The remaining 61% of cases saw the disputed money shared between the parties.

In 2014, 20.25% of total disputes raised by tenants saw them received a full pay-out, in comparison to 18.21% to landlords and agents. In previous years, tenants have been awarded the total deposit more often the landlords and letting agents.

Jax Kneppers, Founder and CEO of Imfuna, suggests that these results are a sign that landlords and letting agents are giving more documented information at adjudications. He notes that, ‘for the first time, landlords and agents are now more successful than tenants at winning 100% of deposits. This is a significant achievement-an 8.5% increase year on year.’[1]

Digital age

Mr Kneppers went on to say, ‘more and more landlords and agents are recognising the power of digital professional inventories and mid-term inspections and this is why the balance is starting to shift. Many landlords and agents are ensuring that the condition of the property is fully recorded at the start of the tenancy, with a comprehensive inventory, along with a thorough check-in and check-out report.’[1]

‘Historically, many tenant disputes have gone in favour of tenants, as there was simply not enough evidence to support the landlord or agent’s damage claim.  The most common mistake in most inventories is the lack of detail.  Often there is not enough appropriate photographs and any accompanying description to show the condition of the property and its contents. For example, many landlords and agents fail to record the condition of sinks and bathroom fittings, as well skirting, doors, floor coverings and kitchen units.  If an inventory is not a professional and thorough report on the property, then it is not worth the paper it is written on,’ he continued.[1]

More deposit disputes going way of landlords

More deposit disputes going way of landlords

Importance of inventories

Inventories are a crucial part of the dispute process and provide information for landlords and tenants about the condition of a property. As Knepper notes, ‘inventory reports should contain a full description of the condition of the property, noting detail on every aspect of damage and its location at the start of a tenancy. Good photographs provide vital evidence and should be of a high quality when printed up to A4 or A3 size, so that any damage can be clearly seen.’[1]

Concluding, Knepper warns, ‘Unless landlords and agents have a water-tight inventory, they are at risk of disputes and expensive repair bills. Our research shows that landlords and agents who have switched from analogue to digital inventories, have seen their tenant deposit disputes drop by more than 300% and their success rate at adjudications improve by an average of 75%.’

[1] http://www.propertyreporter.co.uk/landlords/landlords-are-finally-winning-the-dispute-war.html

Tenants staying in the PRS for longer

Published On: March 7, 2016 at 1:40 pm

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Landlords are being warned to prepare for longer tenancy agreements, following a new survey by the Association of Independent Inventory Clerks (AIIC).

Data from the report shows that the average length of a private tenancy is now four years, up from three and a half recorded in the previous survey.

As such, the organisation said that more thorough preparation must be conducted by landlords, including choosing furniture and interior design schemes.

Rises

The report also found that 46% of 25-24 year olds live in the Private Rented Sector during 2014-15, up from 24% in 2004-05.

Patricia Barber, Chair of the AIIC, noted, ‘despite numerous reports suggesting that the average tenant doesn’t want a long-term contract, the official statistics show that average tenancy lengths are increasing-particularly among families-as people rent for longer.’[1]

These figures should make landlords think more about what features could make their rental property feel more homely. In addition, they should consider how these changes might entice renters to stay in the property for longer.

Organisation

Barber also believes that a rise of longer-term renting underlines the importance of landlords being organised with their administration requirements. She said, ‘when tenants stick around for longer, often the chances of confusion and disagreement over certain issues are increased when the tenancy does eventually come to an end.’[1]

Tenants staying in the PRS for longer

Tenants staying in the PRS for longer

As a result, she said, ‘the longer time goes on, the more likely landlords and tenants are to forget details from the tenancy agreement or important information about the deposit and that’s why stringent administration- keeping copies of everything and organising it accordingly-is so important.’[1]

Important inventories

The AIIC is reminding landlords of their duties and the need for evidence and records, particularly for longer-term tenancies. A professionally prepared, thorough and detailed inventory is essential at the beginning of all tenancy agreements.

‘There are more grey areas over the condition of a property the longer a tenancy goes on,’ Barber continued. ‘A detailed inventory will help landlords and tenants to determine exactly how the property’s condition has changed over the course of the tenancy, what can be deemed fair wear and tear and what needs to be replaced and therefore deducted from the tenant’s deposit.’[1]

An inventory , which has been signed and agreed by the tenant, is the most important piece of evidence that a landlord or agent can possess, if a dispute should arise at the conclusion of a tenancy.

[1] http://www.propertyreporter.co.uk/landlords/landlords-warned-they-must-prepare-for-longer-tenancies.html