News & Information
DEPOSIT PROTECTION SCHEMES UP FOR LICENCE RENEWAL
In 2011 the government will be looking at the contracts they have with the three tenant’s deposit schemes. At the moment it is not known whether the tender will be open to all the existing schemes or to any new applicants. The decision will be made during the autumn.
Tenant’s Contact Details.
It has always been an important part of the job to get forwarding addresses and other contact information from out-going tenants although the gas and electricity companies will not usually chase a landlord for any unpaid bills. Now though new legislation has come into place which means that landlords could get hit for water bills if the tenant is untraceable.
Section 45 of the Floor and Water Management Act 2010 protects the letting agent even if they have made no effort to get this information from the tenant, but if the landlord does not advise the utility provider of incoming and outgoing tenants they will have to pay the bill. If the agent is found to be at fault the landlord has the option of chasing the agent for any losses.
Part of an inventory clerk’s job is to tray and get all relevant contact details but if the tenant is not present, or worse, refuses to give his forwarding address there is little we can do except inform the agent.
TDS Viewpoint on Inventories.
Much has been written in the trade press recently above inventories and their place in the letting process both by the AIIC and a number of other industry professionals.
‘The Agreement’ magazine recently carried an article quoting the TDS viewpoint. It seems that, according to Mike Morgan, Acting Head of Adjudications:-
The absence of an inventory – ‘is problematic and they are vital in enabling us to compare the condition of a property at the start and end of a tenancy. Without an inventory TDS are normally unable to make any award to the landlord.’
On independent inventories – ‘TDS cannot insist on independent reports, there is nothing to stop a landlord producing their own inventory although if poorly prepared they will impact on a landlord’s claim’.
On signed reports – ‘We cannot insist that reports are signed but need to see a clear audit trail. If an inventory is sent to a tenant and is not signed and returned it can usually be taken as assent. If a tenant denies having seen an inventory TDS can accept, on face value, a statement that one was given to the tenant, this could be reinforced by a copy letter showing that this had indeed been done. It would be expected that a tenant would have written objections if not inventory had been received.’
On combined check in/check out reports – ‘a single document showing condition of check in and check out can be problematic. We need a document showing a contemporaneous record of condition at both times, a separate check in and then check out report. More acceptable is a (clean) document that is an updated check in report which is then updated at end of tenancy.’
Photographs – ‘the primary evidence on which we rely is the inventory and check in/check out reports. Undated and/or unsigned photographs are of little evidential use. A photograph of a cracked sink for example could be of any sink, in any property, at any time. Photographs are more useful if they back up a written report to which we can cross-refer and can be undated if a tenant has admitted damage but disputes the cost.’
Courtesy of the AIIC'
Notes from a Deposit Scheme
Adjudicator
Inventories and reports that are covered in additional notes – and are not dated to make it clear at what date the motes were added – will be discounted.
Colour photographs are helpful but not black and white.
Independent evidence of each claim made should be provided.
Landlords and agents should remember that the deposit belongs to the tenant unless there is proof otherwise.
The Deposit Protection Service is currently holding £5million from around 8000 tenants who are uncontactable.
New DPS rules dictate that, when registering a deposit, there must be a named lead tenant with contact details – including a point of contact such as a relative or employer – to avoid future problems.
More Feedback ……………………..
One of our members has actually been on an APIP course and provided the following feedback. The course tutor apparently told the students the following:-
• ‘You don’t need to know anything about ‘fair wear and tear’ – it’s not your job.’
• ‘You don’t need to make recommendations on check outs, the dispute service will deal with everything.
• ‘Don’t take meter readings if you have to kneel on the floor and forget water meters – use a disclaimer.’
• ‘For health and safety reasons don’t list cupboards above the height of your head in case something falls out.’
Perhaps In House clerks would get away with the above but the AIIC do not recommend that any of our members adhere to any of these recommendations.
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