The Deposit Protection Service Blog

A common topic for discussion at our ADR Workshops this summer was managing the expectations of landlords with regards to deposit disputes, reasonableness and ways in which to avoid disputes all together. I thought you’d be interested to read ARLA’s guidance document ‘Summary of the principles of dealing with deposits, disputes & damages’ which is a helpful source used by letting agents for managing the expectations of landlords and the claims being made. Our independent adjudicators also refer to the guidelines when making decisions on deposit disputes.

For more information and advice on avoiding deposit disputes, fair wear and tear and reasonableness, have a read of our blog post ‘Managing expectations: what’s ‘reasonable’ in deposit disputes?’

Thanks to everyone that attended our workshops, it was good to see so many letting agents getting involved; not only listening to the advice we had to offer, but giving each other the benefit of their experiences.

If you couldn’t make it to one of our summer sessions in Bristol, we’re hosting further ADR Workshops later this year in Halifax and London. Keep checking the blog for updates on these sessions.

And if you’re a tenant looking for advice on how to manage your tenancy from start to finish – including avoiding deposit disputes and managing evidence collection – we’re creating an online presentation, solely for tenants, which can be downloaded to your laptop or PC. Watch this space for details of when the presentation will be available.

Tweet This Post

We’ve been looking at rental void periods recently – the time from which a property becomes vacant, to the time new tenants move in. We’ve found that letting agents fill 63% of their vacant properties within two weeks. But only 38% of properties marketed by landlords can claim the same.

We looked at void periods from across 597,753 deposits over the last 2 years and there are huge regional differences; two of the ten worst areas for empty properties were in Lancashire. The South didn’t escape completely though with areas in Surrey, Essex and Hampshire amongst the worst. It was surprising to see that in some areas, 50% of rental properties have been empty for more than three months! That’s a huge loss of income for the landlord; in fact online letting agents Upad estimate that over £3 billion is lost to the voids each year.

At the moment, demand for rental property far exceeds supply so landlords have the ideal opportunity to make sure they maximise their income. Most landlords market their properties really well but our research shows that there is more they can learn to help decrease void periods.

Upad have devised some helpful tips for reducing void periods called Avoid the Voids. Tips include:

• Be seen; use the internet to ensure your properties are as visible as possible
• Advertise with photos; tenants want to see what they are going to get
• Advertise as soon as your tenants leave the property
• Know and exploit the unique selling point of your property
• Keep your rent reasonable

How do you keep your void periods short? Share your top tips with us here, or on Twitter (@The_DPS).

Tweet This Post

At our recent ADR workshop, we had a good discussion with letting agents about managing landlords’ expectations with regard to ‘fair wear and tear’, ‘betterment’ and ‘reasonableness’; all of which are leading factors when deciding on the value of a claim.

It’s one of the biggest challenges faced by letting agents because there’s a fine line between what constitutes damage and simple wear and tear – if a carpet has a stain, it doesn’t necessarily follow that the whole thing needs to be replaced. On the flip side, a small amount of damage can have a huge effect on the room as a whole.

Damage has to be looked at in context. A mark on the wall can easily be covered but if that damage appears in a room of high quality, it may mean significantly more time and money is required to restore it – so an adjudicator may award a larger amount in compensation.

Obviously a detailed inventory is essential for avoiding disputes but you should always attach a schedule of condition as well. Take photos and add the date to them so that there can be no doubt about the original quality of the property and items inside. Get the tenants to come along and watch the check-out inventory; then they can sign it with confidence. I know it’s not always possible to get tenants to attend the check out so make sure that you can provide evidence that they were given every opportunity to attend.     

The adjudicator isn’t there throughout the tenancy; they don’t know the letting agent, landlord or tenant personally and can’t use this in their decision making process. All they have to go on is the evidence provided, so the key is to make it as compelling and relevant as possible, and before submitting it ask yourself the question ‘is it reasonable’?

Tweet This Post

I read an interesting article this morning – a Stafford letting agency’s financial security has been questioned after the company that owns it has become a victim of the economy and gone into administration. As you can imagine this has left landlords worried about lost rent payments, and tenants wondering if they’re going to see their deposits again.

After reading the article I wanted to reassure both landlords and tenants that if they use the DPS their deposits are safe. As soon as we receive a deposit payment we protect it independently until the end of your tenancy when you can reclaim it, regardless of whether your letting agent or landlord is still in business or not.

As long as the deposit is protected in a Government approved scheme, all tenants have protection against letting agent or landlord administration.

Tweet This Post

I had the pleasure of the company of many lady landlords at last Thursday’s Women In Property awards in London. The DPS was one of the sponsors, so I dug out my tux and headed off to congratulate the many and deserved award winners. It never ceases to amaze me what lengths really good landlords and ladies will go to to help their tenants out. This year’s overall winner, Juliet Ashton-Taylor, even goes so far as to keep one of her rooms at a knock-down price for someone who needs a helping hand in putting their life back on track. Another lady, Fiona Macaskill, plants fruit trees and vegetables in the gardens of her properties for her tenants to use. We often hear about the ‘rogue’ side of the industry, but I thoroughly enjoyed the opportunity to spend some time listening to what the best landlords and letting agents do. Well done to all of this year’s winners.

http://www.propertywomenawards.org.uk/winners2010.aspx

Tweet This Post

I read an article in the Daily Express yesterday which suggested that tenants are at risk because the previous government’s plans for a landlord register have been scrapped. As we all know, there are still plenty of ways in which tenants can make sure they’re renting from a reputable landlord or letting agent – and The DPS put out a statement to that effect yesterday. With three daughters all renting, it’s advice I follow myself each time they decide to appeal once more to the bank of Mum and Dad and upgrade their accommodation by moving!

Read the statement here.

Tweet This Post

We had a very successful day at our recent ADR workshop held at our office in South Bristol.

34 letting agents attended the full day session, getting an overview of the ADR process from The DPS Team, including guidance on the single and joint claim processes, evidence collection and submission. The afternoon session gave delegates an insight into how the adjudicator assesses the evidence right through to the decision making process. There was also an opportunity to examine real-life cases and adjudicate on them with help and advice from our Head of Adjudication.

The aim of these workshops is to better equip letting agents to deal with the ADR process and more importantly to help them manage the expectations of their landlords.

“I found the whole day very informative and very well explained.  I have never used the ADR before but now I would be more confident to do so.” – Julia Woodley, Pullin Knight, Bath

“It was one of the best workshops I have ever been on.” – Helen Simmons, Page & Wells, Maidstone

“The speakers were very informative and the staff very friendly and helpful – I was pleased I attended.” - Nikki Gilson, Kendrick Property Services, Hove

The other two workshops being held over the summer are now full. We have had several requests to run some sessions in London, which we hope to do later in the year.  Keep checking the blog and Twitter (@The_DPS) for updates.

There are some pictures of the workshop below.

Tweet This Post

We’ve had such a huge response to our ADR workshops that we’re running out of spaces fast and our sessions in June and July are already full!

There are still several spaces left for our session on 11^th August but they’re bound to fill up quickly so make sure you secure your booking today by contacting events@depositprotection.com.

You’ll have the opportunity to get expert advice and best practice guidelines from senior members of our ADR Team, review real-life case studies and network with other agents.

Contact us today to secure your place!

Tweet This Post

I get loads of requests to give presentations and seminars across the country, and whilst I’d like to be able to come and speak at them all, unfortunately it’s not always possible.

So, I’m looking to do some webinars later this summer in which I’ll provide hints and tips about different aspects of deposit protection including registering and submitting deposits to The DPS, making single and joint claims and the ADR process. It’ll also be an opportunity to go through some of our new services including bulk uploads and SMS alerts.

Webinars are online sessions; the presentation can be viewed and listened to through your laptop or PC so you won’t even have to leave your home!

Keep checking this blog for more details about upcoming webinars or, if you have any questions, send us an email.

Tweet This Post

Fancy getting expert advice and best practice tips on how to improve deposit dispute submissions, helping you and your landlords save time and money?

Then come along to one of our ADR Workshops.

Sessions will be hosted by senior members of our ADR Team and include a presentation by our Head of Adjudication. The workshop will cover the ADR process and give practical guidance on evidence collection and submission.

You’ll get to network with other letting agents; take a look at some real-life case studies – good and bad, and you’ll even have a chance to be an adjudicator.

At the end of the day I’ll be hosting a Q&A session where you can put your questions to our experienced speakers.

Make sure you don’t miss out – register your interest in the ADR Workshop today!

Once we’ve got your details we’ll let you know when the next workshop will take place. Sessions are based at our Bristol office and are £50 (inc VAT) per person – this includes lunch and refreshments throughout the day.

If you’ve got any questions, email events@depositprotection.com.

Tweet This Post