Increase in landlords claiming on their insurance due to deposit disputes
Latest figures released by the TDS show that deposit disputes are at their highest level since records began, 7 years ago; meaning that more and more landlords are having to claim on their insurance.
TDS data shows us that damage, cleaning and redecoration are the most common reasons given for a tenancy deposit dispute, where in 2014-15 cleaning accounted for 58% of cases and 52% in damages. Furthermore, in 2015 adjudications leapt by 11% year on year and over the last 5 years adjudications have jumped by a massive 36%!
Adjudications completed each year – Source TDS 2015:
So where should you start, to prevent your tenancy ending in dispute?
- Your first port of call should be enlisting the help of a specialist tenant referencing service.
At Tenant Referencing UK we have found the biggest downfall to new buy to let landlords is the fact that they still do not understand the need for proactive and thorough tenant referencing protocol. Tenants that are likely to cause large amounts of damage avoid attracting attention by appearing to be good tenants. It is only when the damage is done and the landlord is left with the bill that these sorts of renters are caught out, as you can see here.
It is well known by Landlords that they can undertake references from a credit reference agency and tenants employers, but these do not tell them how a tenant may conduct themselves in payments and their lifestyle. This is why LRS is revolutionising the Lettings industry, as it is the structure needed to enable Landlords and Agents to obtain this information from each other legally, quickly and easily.
Moreover, our (free) rolling news blog and live discussion forum can help landlords with best practice on their inventories, check in and check outs, tenancy agreements, letting their property, etc which will additionally protect them from potential disputes further down the line.
2. Use a simple deposit protection solution.
As a member of Tenant Referencing UK you can access a discount of up to 50% on your joining fees with MyDeposits and a £2 discount off of every deposit you register.
MyDeposits also have some excellent guides and documents, that can be found here.
3. Get your landlord insurances in order.
Landlords and letting agents nationwide are taking out rental insurance products and legal expenses insurance to protect them against loss of rent and legal support should their tenancy encounter problems.
In today’s property investment market it is paramount to make sure you get the best possible tenant, the rent is paid on time and your investments are safe for the future. Last year 35,000 landlords had their properties repossessed and the majority was because their tenants did not pay the rent. Based on this, our UK Rent Safe Insurance (RGI) has been designed to keep you safer, help you remove problematic tenants and then pursue them for unpaid rent whilst keeping your investment property properly and safely insured.
Built specifically for the lettings property industry, but available to all, we aim to beat any like for like quote to keep you coming back again and again for a customer led service, at a highly competitive rate. So please click here to fill out the form for one of the most competitive insurance products on the market today.