The Deposit Protection Service Blog

Undoubtedly the hottest topic on the property pages has been the rapid rise of the private rented sector. Monthly rental values soared and tenant population increased as the housing market struggled.

Letting agent Haart released figures in December 2011 that showed a 10% increase in the number of people registering with them over the last 3 months – a trend they expect to continue this year.

Activity at The DPS over the last year has also increased in line with this report. Since April 2011, monthly registrations and deposit submissions have been higher than last year. Here are some of the highlights:

›  Nearly 1 million deposits repaid since scheme launch in 2007

›  825,000 deposits worth £644 million currently protected on behalf of 166 organisations, 280,000 landlords and letting agents.

›  191,000 enquiries through Emma, our online virtual agent

›  69,000 text message reminders sent

›  50,000 deposit submissions in September – always a peak month but this was 4,000 more than 2010.

›  6,000 new landlords in August – 500 more than in 2010

›  600 adjudications completed in November – twice as many as last year but you’d expect this rise as the scheme matures

›  450 new letting agents in October

The DPS has the infrastructure and capability to easily deal with any rise in registrations, submissions, repayments and adjudications. With a new look website launched late last year and several new features that make deposit protection even easier for those landlords and tenants who are new to deposit protection, we’re more than ready to cope with further increases expected in 2012.

A landlord’s work is never done…

Landlords and letting agents never rest, particularly when there is so much demand on rental property and it seems several didn’t even take a break over Christmas and New Year.

›  We registered 5 new landlords on Christmas Day and a further 59 on New Year’s Eve.

›  15 deposits were submitted on Christmas Day and another 187 on New Year’s Eve

›  The latest deposit submitted on Christmas Day was at 23:09. On New Year’s eve, the last deposit was registered just in   time for fireworks and champagne at 23:41!

The year ahead…

We’re all very excited about taking deposit protection to Scotland this year and are currently awaiting approval from the Scottish Government to launch The LPS Scotland. We’re expecting this to be in April this year, so if you have rental properties in Scotland, get familiar with the requirements on the website and blog.

On behalf of everyone at The DPS, I wish you all the best for 2012.

As you know, you can never fully switch off from your responsibilities as a landlord, whether that be taking on new tenants, completing deposit disputes or making sure your property is kept in good condition over the festive period.

There are a couple of things you can do to make sure your properties are in order, ensuring the safety of your tenants and hopefully a stress-free Christmas for you.

Are your tenants leaving the property over Christmas?

Our adjudication team received a lot of claims earlier this year following the severe winter weather in 2010. The majority were the result of burst or frozen pipes at student houses where tenants had left the property to spend Christmas with their families.

In the worst cases seen by our adjudicators over the years burst pipes have resulted in damage to carpets and flooring, kitchen appliances needing replacing and claims for lost rent whilst damage is repaired. Some landlords have faced repair bills of several thousand pounds.

To avoid this stress and expense, you should contact your tenants if they’re going away to ensure that the proper measures are taken to avoid this kind of damage.

The AIIC has issued some guidance on keeping your properties safe during cold spells:

›   Insulation – Ensure water pipes and tanks are lagged and insulated.

›   Heating – Advise tenants to keep the heating on, at a min. of 15 degrees, if they’re going away. It’s also sensible to open the loft hatch allowing air to circulate and prevent pipes freezing and bursting in the loft.

›   Boiler servicing – Ensure that gas and oil boilers are serviced every 12 months.

›   If the property is going to be empty for an extended period it’s sensible to have the heating/water system drained by a qualified contractor.

›   Chimneys – Ensure they are swept once a year by a professional chimney sweep, ideally before the tenant starts using the fire.

›   Smoke Alarms – Check that smoke alarms are fitted in all properties and that they are all working properly. Replace batteries as necessary.

Be aware of evidence submission deadlines

If you’ve currently got a deposit in dispute then don’t forget to stick to your evidence submission deadlines. The DPS is not extending any deadlines but is making allowances for bank holidays so if you’re concerned about a deadline then get in touch so we can see what we can do for you.

Our Christmas opening hours

If you’re taking on new tenants over Christmas or the New Year you can submit deposits at any time online. If you need assistance our contact centre opening hours are:

Friday 23^rd – 8:30am – 4:00pm

Monday 26^th – CLOSED 

Tuesday 27^th – CLOSED 

Wednesday 28^th – 8:30am – 5:30pm

Thursday 29^th – 8:30am – 5:30pm

Friday 30^th – 8:30am – 5:00pm

Monday 2^nd – CLOSED

You can also get in touch via online form or why not ask Emma, our online customer service agent.

Finally, a very merry Christmas to you from everyone at The DPS!

We’ve made protecting and returning tenants’ deposits even easier with our latest service enhancements.

As well as a new look website which launched successfully this week, we’ve introduced:

› Repayment ID reminders via text message
› ‘Organisation’ as a new registration category
› Incremental deposit payments
› Simplified direct transfer process
› Ability to cancel joint repayment claims started in error

The enhancements are part of our ongoing commitment to simplify deposit protection and, more crucially, speed up the repayment process.

Whilst repaying deposits only takes two days once we have agreement from both parties, the biggest barrier is misplaced repayment IDs by both tenants and landlords each month – without these, they cannot start or complete the deposit repayment process.

The latest addition to our SMS service is the fastest way for tenants to receive repayment ID reminders. Tenants simply text us and ask for a repayment ID reminder. We’ll then instantly issue the reminder via return text message. Tenants can only use this service if their mobile number is registered, so it’s important that landlords register the correct mobile number for their tenants.

The enhancements also coincide with our application for a licence to take our considerable experience as the UK’s only custodial tenancy deposit protection scheme and apply it to Scotland.

Here’s a little more information on each of the enhancements launched this weekend:

SMS repayment ID reminders
Tenants can text The DPS requesting a reminder of their repayment ID. The DPS will instantly issue the reminder via return text message so it is important that landlords ensure a correct mobile phone number is registered for their tenants.

New registration type
Organisations such as NHS Trusts, companies or Universities can register deposits as an ‘organisation’ rather than ‘letting agent’ or ‘landlord’, if they do not fall into either of these two categories.

Incremental deposit payments
Landlords, letting agents and other organisations can now pay deposits in stages if their tenant is unable to pay the full deposit upfront, or has agreed a payment plan prior to taking the tenancy.

Enhanced direct transfer payment service
This enhanced process makes it easier for landlords, letting agents and other organisations to pay for new deposits.

Ability to cancel joint repayments if started in error
Previously the requesting party would have had to contact The DPS to rectify any errors, causing delays in getting their deposits back.

Revamped website
The new website allows easier navigation to the pages that visitors need to access. Whether the user is already registered and protecting deposits or simply browsing the site, they can quickly access information that is relevant to them with regard to managing deposits or getting help online.

For more information visit our new-look website.

They don’t call it dispute resolution for nothing – but there are some cases that take disputes over deposits to a more personal level.

Landlords and tenants enter into a contractual relationship and, like any other relationship, this can ‘irretrievably break down’ during the course of the tenancy.

We’ve seen several cases where this has happened. The relationship breaks down to such an extent that tenants withhold rent as they feel the landlord hasn’t maintained the property correctly, or in some cases, the aggrieved tenant has trashed a property as a result of the disagreement.

When it comes to a head like this, adjudicators can be left to deal with the fallout and find themselves wading through lengthy and heated email or text message exchanges between the parties in order to establish the real facts of the case.

A recent case got so personal that it wouldn’t have been out of place on ‘Jeremy Kyle’! The initial evidence involved a 13-page typewritten submission which was largely a tirade of abuse – referring to the other party as, amongst other things, habitual liars, alcoholics, weak, lonely, unhappy, angry, unbalanced and violent. 

Not surprisingly, the other party responded with an 18-page typewritten submission that claimed their opponents were abusive and rude, harassed them, made personal insults, had mental health issues, threatened them and made nuisance calls to them.

With this abundance of excess information, the real facts of the case can get lost and in some cases delay a decision due to the sheer volume of correspondence to trawl through. It can also confuse the outcome and mean that a fair decision cannot be made.

Whilst our adjudicators wouldn’t ever prevent the disputing parties providing anything which they feel is required for the adjudicator to come to their decision, it’s advisable to stick to the facts where possible.

Attempts to assassinate the character of the other party are rarely helpful to the claim and are unlikely to be given much weight by the adjudicator. A clear and factual account of the tenancy, a chronology of events, clear evidence of the condition of the property and invoices/estimates/receipts will always be much more persuasive.

If you need help or guidance on how to tackle a deposit dispute our ‘Guide to Tenancy Deposits, Disputes and Damages’ gives further information on the adjudication process and the way a decision will be reached.