How to avoid tenant disputes

Of those, 66% opted to settle the dispute in court, while 34% managed to resolve issues without the help of the legal system.

The study, conducted by My Property Inventories also reveals that the top cause of disputes is damage to property (58%), followed by redecoration (51%) and cleaning and rent arrears (42%).

Damage to property is a major concern for landlords and agents, with one in three landlords (28%) experiencing property damage by tenants over the past 12 months, according to the latest research from the National Landlords Association (NLA). The findings, estimated to affect more than 400,000 of the UK’s 1.5 million landlords, come as a stark reminder about the potential problems of letting property.

Danny Zane, Director of My Property Inventories explains: “It is so important that agents and landlords ensure they have all the right documentation and evidence to improve their chances of resolving or winning a dispute.
  

Unfortunately, landlords are losing disputes because they can’t provide the right evidence to show that a tenant has damaged the property. For example, some landlords are failing to put a letting contract in place, or they have very unfair clauses in the contact. Other landlords don’t conduct an adequate check-in and check-out, or don’t keep copies of correspondence with the tenant which could be evidence in a dispute.

Normal wear and tear is a fact of life with rental properties, but if landlords and agents wish to avoid the hassle of arguments over who is responsible for damage, they need to prepare a thorough inventory of the condition of the property, that details the condition of everything in it.

Usually tenants are aware that they have caused actual damage to a property and will try to hide it.  Hence it is vital that landlords and agents ensure that there is a thorough examination of the property and its contents to identify any damage at the check-out.

If landlords have a thorough and detailed inventory, it will enable both parties to be treated fairly and reasonably. By opening a dialogue with tenants and using an independent inventory clerk, disputes can be resolved quicker and without the hassle that is often experienced at the end of a tenancy period.”

My Property Inventories has outlined some guidelines below to help landlords and agents to avoid a potential dispute:

Don’t compile your own inventory, leave it to the professionals. Detail is vital - fine detail even better. Take dated photographs of the garden; interior of the shed or garage; inside of the oven; and keys handed over to tenants - these are the main areas of problems that occur and are often down to misinterpretation at the end of a tenancy. Remember, you don’t need photos of every single corner of the property - stick to the important things. Don’t try to produce a completely photographic or filmed inventory without a complete written accompanying inventory

Make sure your property is fit for letting - on check-in day the place should be completely clean and any garden areas should be tidy, lawns cut, borders weeded etc. If you don't start correctly, then things definitely won’t improve by check-out day/end of tenancy and you'll end up with a very tatty property, which won’t be let easily. Tenants cannot be charged for improvements - for making good/cleaning things that were wrong at the start and are still wrong at the end of the tenancy.

Carry out a full check-in - where you or the inventory clerk checks through every line of the inventory.  Add any amendments needed and then ensure that the tenant signs their agreement at the end. When moving out day comes, try to make sure that the tenant is present at the check-out and make sure all the problems are explained - nasty surprises later will cause certain disputes.

Always try to keep good communication ongoing with your tenants and encourage them to report any problems, as and when they occur during the tenancy.  This ensures that your property will be kept in as good a condition as possible, and that their negligence will not cause more serious problems and expense for both you and the tenants.