What are the biggest causes of deductions from rental deposits?

When renting out a property, most landlords – or their letting agents – opt to take a deposit from the tenant(s) prior to the tenancy starting.

Deposits offer a level of protection to landlords, meaning that, if the tenant breaches the terms of the tenancy agreement, they can them make appropriate deductions from the deposit.

Clear property damage, poor cleanliness or anything that is different from the property’s original state, which is easy to identify if there is an inventory management report and a schedule of condition in place at the start of the tenancy agreement, will enable the landlord or their agent to rightly off-set the compensation from the tenant’s deposit.

Research by interior specialists Hillarys, part of ongoing research into the habits of Britons and their attitudes towards renting, showed that top reasons that tenants were given for why they had lost part, or all, of their tenancy deposit.

Marks on the walls, carpet stains, the need for redecorations and mould were among the five most common reasons listed as to why tenants had had money deducted.

Broken furniture29%
Marks on walls24%
Carpet stains21%
Redecorations12%
Mould9%

Spokesperson for Hillarys, Tara Hill, said:

Security deposits are an unavoidable part of renting a property, and can be an essential way for landlords to deal with damage caused by tenants. But they can result in disputes and are a major cause of distrust among tenants.

Whilst there appears to be an issue around the lack of trust when related to deposit protection, according to the research, Paul Carr Residential Lettings use The Tenancy Deposit Scheme (TDS), which is run by The Dispute Service under a government awarded contract.

For further details in regards to The Tenancy Deposit Scheme and the guidelines Paul Carr Residential Lettings follow, please see our Tenant’s Guide.

Quarter of households will be private renters by 2021

According to new research, the proportion of households living in the Private Rented Sector (PRS) will rise to 24% over the next four years.

The Knight Frank Multihousing Report has suggested that some 5.79 million households will be private renters by the end of 2021.

The survey of over 10,000 tenants revealed that 68% expect to still be living in the PRS in three years’ time.

The young professional demographic, 25-34-year-olds, make up the largest proportion of private renters.

The biggest concerns for tenants are affordability, location and then the rental property itself.

Tim Hyatt, head of residential lettings at Knight Frank, said:

The flexibility that renting offers has reinforced its popularity as both a sensible and accepted solution for young couples without children and those living on their own but also highlights an expected rise in older households over the next five years.

The number of people renting out of choice rather than due to affordability of ownership constraints is an interesting indicator of how the market will continue to thrive in terms of tenant demand.

Institutional investment in the PRS is set to rise to £70 billion over the next five years, according to the research. The changes in recent years, including the 3% stamp duty surcharge and the restriction of BTL mortgage interest tax relief, have made institutional, large scale investment in the PRS more appealing.

If you are currently a landlord or are looking to invest in a rental property, please contact our Lettings Hub and find out how we are committed to getting you the best rental value for your property.