The subject of lodger deposits has always been one of a great many grey areas for both landlords and tenants.
Given the fact that every penny of the deposit money technically belongs to the tenant or lodger, and that deposit disputes can take time and money, it is in everyone’s best interest to ensure both sides fully understand their rights and obligations.
From carrying out a comprehensive check-in inventory at move in, to knowing your rights as a landlord, letting agent or lodger – we explore how to negotiate the return of the lodger deposit.
What is the Difference Between a Lodger and a Tenant?
The difference between a lodger and a tenant is:
- A tenant pays rent and lives in a property you own but do not live in
- A lodger lives in the same property as you and pays rent
Negotiating the return of a deposit if you are a lodger, living in student halls or living at the same property as your landlord is a slightly different process to that of the standard rental property tenant.
The most important difference in regard to rights, is that landlords and letting agents are not required to place a lodger deposit into a deposit protection scheme.
In comparison, lodger agreements are called licenses rather than tenancy agreements and landlords are legally permitted to give a reasonable notice period anywhere from 14 days to 28 days. The time period should be set out in the original license and agreed upon by both landlord and lodger.
How Much Is A Deposit?
A standard lodger’s deposit tends to be one month’s rent. However, this isn’t fixed and some landlords and letting agents demand up to 6 weeks.
Negotiating the Return of a Lodger Deposit: First Steps
When the time comes to begin negotiating the return of a deposit, the first step is for the lodger to request the return in writing. Lodgers should write directly to the landlord and ask them to return the deposit, being sure to keep copies of all correspondence in both directions. You may be required to produce evidence of such requests at a later time, so it’s a good idea to hold onto them.
The best time to return the deposit to a former lodger is after they have moved out with their possessions and you have checked the room thoroughly for any damage.
Lodger Deposit Protection
What’s different about this particular scenario is the way in which lodgers are not considered short-hold tenants, which means the landlord is not under any legal requirement to protect deposits using an appropriate tenancy deposit scheme. This doesn’t necessarily affect lodger’s actual rights when it comes to the deposit in general but can affect the negotiation and deposit return processes.
Establish a Deadline
Most professional landlord inventory services in the UK agree that problems generally occur when lodgers are not direct and/or demanding enough when it comes to requesting what is rightfully theirs. If the deposit should have been returned but has not, the best course of action is to begin with a written request for its immediate return with a specified deadline – something like two weeks.
Lodgers can also take the opportunity to ask in the letter why the deposit has not yet been refunded, along with whether or not they can expect any deductions to be made and the respective reasons.
If unsure how to go about this, there are plenty of useful templates available online.
Lodger Deposit Disputes and Deductions
As a lodger landlord, you are required to clearly list and explain any deductions to be taken from the deposit. If you fully agree with your lodger that the deductions are fair, you can confirm your agreement and arrange for the remaining deposit to be refunded.
If deductions are made, though no breakdown or explanation is provided, lodgers can request that this is done urgently. And if there are any deductions you do not agree with, you may need to dispute the deposit.
What are Reasonable Deductions?
Landlords and letting agents can deduct money from the lodger’s deposit if the lodger has any outstanding rent or if they have caused any damage to their rented living space. Damage above the level of fair wear and tear could include damage or stains on furniture or furnishings or missing items from the inventory.
Lodger Agreement Deposit Return: Court Action
From time to time, disputes cannot be resolved through talking alone and you may find that your lodger takes court action. Lodgers can also claim online through the Courts & Tribunals Service.
For a claim to be successful, it will need plenty of documented evidence of attempts to recover the deposit manually, as well as evidence in regard to the condition of the rented space at check-out.
Landlords do have the option of making an offer before the case proceeds any further.
Don’t Skip the Inventory Report
One way to ensure the return of the lodger deposit goes smoothly, without resorting to the courts is to have a detailed inventory report in place.
A professional inventory report can;
- Provide evidence of the condition of the room or property at the start and end of the lodging period
- Provide evidence of the condition of furniture and furnishings
- Provide lodgers with check-out information to minimise disputes
If you’re a resident landlord or a letting agent looking to take the stress out of the inventory process, find out how No Letting Go can help with our wide range of property inventory services.
We’re happy to announce that we have been awarded accreditation from Safecontractor for our commitment to achieving excellence in health and safety. Safecontractor is a leading third party accreditation scheme which recognises very high standards in health and safety management amongst UK contractors.
The company’s application for Safecontractor accreditation was driven by the need for a uniform standard across the business.
“No Letting Go understands the importance of taking risk management seriously with regard to our clients, their clients and our personnel. We are constantly striving to continuously improve the standards of property reporting and ensure the health & safety of all our stakeholders”, said Nick Lyons, No Letting Go’s CEO.
Safecontractor accreditation will enhance the company’s ability to attract new contracts and its commitment to safety will be viewed positively by its insurers when the company liability policy is up for renewal.
Safecontractor is applicable to most sectors although it is particularly relevant to food manufacture, property, facilities management, retail and leisure sectors, all of which are big users of contracted services.
John Kinge, technical director of Safecontractor said, “Major organisations simply cannot afford to run the risk of employing contractors who are not able to prove that they have sound health and safety policies in place.”
“More companies need to understand the importance of adopting good risk management in the way that No Letting Go has done. The firm’s high standard has set an example which hopefully will be followed by other companies within the sector.
Safecontractor plays a vital role in supporting our clients in meeting their compliance needs, whilst working with their contractors as they progress through the accreditation process.”
Under the Safecontractor scheme, businesses undergo a vetting process which examines health and safety procedures and their track record for safe practice. Those companies meeting the high standard are included on a database, which is accessible to registered users only via a website.
Client-organisations who sign up to the scheme can access the database, enabling them to vet potential contractors before they even set foot on site. These clients agree that, as users of the scheme, they will engage only those who have received accreditation.
Over 210 major, nation-wide businesses, from several key sectors, have signed up to use the scheme when selecting contractors for services such as building, cleaning, maintenance, refurbishment or electrical and mechanical work.
No Letting Go will launch its new tablet technology Kaptur, at this month’s ARLA Conference and Exhibition; the first inventory management services provider to have developed its own tablet software.
Nick Lyons No Letting Go’s CEO said, ‘Developing our own system ensures that the technology is the perfect fit for our clients’ business needs now and in the future. It was the next logical step after developing our user-friendly online Property Inventory Management Software (PIMS). Designed to give complete control over the inventory management process in real-time, I believe it is yet another differentiator that sets No Letting Go apart from other suppliers of inventory management services and is in keeping with our ‘leaders in the field’ philosophy.”
It is easy, simple and does exactly what it is supposed to do but, most importantly, it is integrated into No Letting Go’s PIMS platform. Voice files, photographs, text, disclaimers, signatures are all fully integrated to make life easier. No Letting Go is also making the software available to Agents who want to carry out their own inventories in-house with a white labelling option.
Combining services improves efficiency and adds great value for Landlords; Kaptur has features that enable other reporting services to be included, such as No Letting Go’s recently launched Legionella Risk Assessment Reporting.
Kaptur will be on show at the ARLA Conference & Exhibition. FInd out more about Kaptur and No Letting Go’s other services by visiting Stand 15 on Tuesday 31 March at the Hilton London Metropole, Edgware Road, London W2 1 JU.
It is recommended that landlords perform a Legionella risk assessment every two years to meet their legal duty in ensuring that the risk of exposure of tenants to Legionella is properly assessed and controlled.
We are always looking for additional ways to add extra value to our client’s services that in turn helps provide a better service to their landlords. Legionella risk assessment makes a lot of sense for us as we have the right skill set to ensure this work is carried out to the highest levels and can in turn be offered in addition to our inventory management services.
Outsourcing this activity through us is an efficient and cost-effective way for landlords, agents and property managers to demonstrate they are compliant. We can perform the risk assessment as a separate visit or whilst we are already attending the property for a check-in, check-out or mid-term report allowing for us to offer better overall value.
Legionella is a bacteria naturally found in water systems. Whilst the bacteria at low levels do not pose a health risk, under certain conditions, in water storage tanks for example, and in certain temperature ranges, the bacteria can multiply increasing the risk of Legionnaire’s Disease. Risk increases in water systems that are unused for any period of time; making rental properties particularly vulnerable. Legionnaire’s is a potentially fatal disease with flu-like symptoms often mistaken for pneumonia contracted by inhaling bacteria contained in water droplets.
We are to provide full checks of the entire water system in residential property including water tanks in lofts, pipes, taps, toilet and shower systems. The risk assessment will indicate whether any action is required on the part of the landlord and if not is a record demonstrating compliance in protecting tenants.
Photo sources: bwt-ni.co.uk – housemanwaterhygiene.com
We’re delighted to welcome Janine Gehlig who is heading up our new branch in Liverpool. Janine has been involved in the property sector since 2008. She has excelled within the sector of construction and property clerking, as well as leasing in the commercial and residential divisions. Janine has extensive inventory experience. She spent four years in South Africa working in the market as well as working with No Letting Go since January 2014.
Her achievements have given her an opportunity to set up the Liverpool No Letting Go branch which she is sure to tackle head on. Not only has Janine provided a level of service which is always held up to a high standard, her professional and “always willing to get the job done” attitude ensures the Liverpool No Letting Go branch will succeed.
Nick Lyons, Managing Director of No Letting Go added, “The property rental market and subsequently the property services sector is extremely buoyant. Liverpool has become one of the UK’s Top 6 rental markets for Landlords, yielding even better returns than London property. Janine will ensure service levels are maintained throughout the area in line with our philosophy of providing a national service that is delivered locally. ”
For more information please contact Janine Gehlig direct on 07474 736 313 or Gary Claven on 07475 526 111; alternatively visit www.nolettinggo.co.uk.
The landlord/tenant relationship is a common one in the UK, with a reported 3.8 million people living in rented accommodation in England alone. However, while many tenants enjoy a long and prosperous relationship with landlords, there are also those whose association is less than amicable.
We’ve all heard the stories about landlords from hell; there are enough of them out there to give landlords everywhere a bad name. Nevertheless, the nightmarish tales do not exist solely on the side of the property owner – there are also stories of tenants from hell, making the landlord’s life misery and ruining a rental property.
Most of the issues that occur between both parties in a rental agreement are because of one thing: blame. Landlords blaming tenants for causing damage and tenants insisting damage was pre-existing, it is a common situation; however, it is also one that never has to surface. Playing the blame game pits your word against the word of the other party, the result of which generally ends up being settled in court. A simple document such as a property inventory, though, will instantly eliminate any issue over any aspect of a property.
Property inventories for landlords
As a landlord, it goes without saying that you want to protect your home, your livelihood. Since 2007 and the introduction of the Tenancy Deposit Scheme (TDS), it has been much harder to do this. The old days of having full control over a deposit are gone – tenants have more rights and they know this. Since the TDS was brought in, tenants are now more willing to challenge the holding of a deposit; some will do it even if they know they are in the wrong. While this can be frustrating, they are well within their rights to do this and they have a pretty good chance of winning if a case went to court. The only way you can prevent this from happening is with a comprehensive property inventory.
An inventory, when carried out by an agency, will list all of the contents and record the condition of a property using both written and photographic methods. The inventory will be taken just before a tenant moves in and just before a tenant leaves, to make clear what, if any, damages need to be repaired and paid for out of a deposit. Inventories are generally carried out with a tenant in attendance and must be signed by the tenant, giving you as the landlord assurances that your property is protected.
Property inventories for tenants
As a tenant, the reasons for considering an inventory are the same as those of a landlord: you do not want to be blamed for something you haven’t done. While the Tenancy Deposit Scheme is in place to ensure your deposit is protected, an inventory report will provide you with that extra assurance that you need to leave a property without any hassle.
There are times when landlords and tenants do not agree on certain things – one thing they can both agree on, though, is a property inventory.
Image sources on flickr: Michael Mandiberg & Orin Zebest
Have you ever wondered how the life of a professional inventory clerk is? We decided to ask directly to our franchisees and share with you their professional experiences but also any light hearted or intriguing anecdotes. The first ones to answer our questions are Alison & Mark from the No Letting Go Swindon & Cotswolds local branch.
1) Some of our readers may be unsure as to what is involved in your line of work. Shed some light by telling us about a typical day in the life of a professional inventory clerk.
Independently and impartially carrying out a detailed inventory of and reporting on condition and cleanliness of properties primarily in the residential lettings sector before, during and after a tenancy has taken place. A typical day will involve liaising with letting agents / landlords and tenants in order to make this happen!
2) As a professional inventory clerk it is essential that you have an eye for detail; what other skills would you consider essential to do the job well?
Empathy, enthusiasm, resolve, impartiality, flexibility, initiative and resilience!!
3) How might a landlord prepare for an inventory?
Ensure in good decorative order with carpets professionally cleaned and vacuumed, all rubbish/ unwanted items removed, kitchen and bathrooms , flooring and woodwork all professionally cleaned throughout.
4) When moving house, stuff is constantly being shifted about from place to place and it is all too easy to overlook the odd item when packing. You must have come across some oddities during your time as an inventory clerk. What are the five strangest items you have found in a property during check out?
Wardrobe novelty door knob decorations such as soft toys/ hearts etc, a leather whip, , a straw boater hat and recipe cards to name a few!
5) Property is hot business at the minute, often seen as a great investment if managed properly. If you could offer three tips for new landlords wanting to let their properties what would they be?
Maintain it. Have it professionally cleaned and arrange a detailed, impartial and professional inventory make.
6) Landlords and tenants are two of a kind; they can be great, a perfect match but they can also be high maintenance, occasionally apathetic and sometimes complacent. What are the three most typical complaints landlords have in relation to the inventory market?
- Poor quality reports from previous inventory providers
- Tenants leaving the place in a worse condition than taken on, most of the time not technically correct as they often have a ‘rose tinted view’ of their own properties
- Missing / damaged items or appliances
7) And what about the tenants, do you ever receive any complaints from them if so what are typical complaints and are they always justified?
- Non- completed tasks / actions by landlord or through letting agent such as phone points that were supposed to have been installed
- Grass cutting before tenancy
- Cleanliness or lack of it! in relation to the property
8) Animal lovers can often be dismayed when moving into rented accommodation as many landlords do not allow pets to be kept within their property. In your experience, what implications and issues does owning a pet have on a property?
- Wear & tear on carpets
- Build up of pet hair
- Smell
- Cleanliness
9) You must have held the keys to a fair few houses in your time: from the elegant to the beautifully designed to the stunningly decorated. Can you tell us about any interesting houses you’ve come across?
48 room 138 page inventory on an 11 bedroom, 7 bathroom country house with swimming pool, tennis courts, changing rooms, walled garden and stable blocks & outbuildings. A number of large farmhouses all with seemingly single people moving in!!
10) On the No Letting Go website it states: “No Letting Go will provide peace of mind and ensure no horrible surprises”, give us an example of any “horrible surprises” you’ve encountered.
- On a job in a rural location everything was prepared meticulously by the both agent and landlord with carpets professionally cleaned and even re-stretched, yet when we arrived to carry out the inventory make , overnight a Jackdaw had fallen down the chimney and marked the carpets again with loose carbon from the chimney and had several accidents shall we say, scared in a corner we managed to get him outside and contacted the agent bringing the tenants attention to it at check in but adding that additional cleaning was being arranged as we carried it out!
- Upon carrying out a inventory on a newly renovated property the landlord said would be clear but they had still been living in the property , were pulling cables through the ceiling still for inset spotlights and even though there were ‘glass walls’ upstairs the landlords partner was running around half naked !!
11) There are many routes towards owning your own business, what compelled you to become an inventory franchisee, has it been a wise decision and how much did you know about the world of inventories previously?
General interest in / passion for property. Not sure yet as still early days yet love the work but need it to provide a better income level & no not really!!
12) Would you recommend inventory management as a career for others?
Yes, if you are hard working, adaptable, flexible, self- reliant and personable you’ll do very well.
The importance of Inventory Management Reports.
The importance of correct paperwork when letting a property cannot be underestimated. There are over 55 pieces of legislation to rent a single property and all require adhering too. Mostly, this legislation can be effectively managed at the start of the tenancy.
Condition and misuse of property reporting comes under the general term of Inventory Management reporting. These reports cover:
- Inventory and Schedule of Condition – a detailed professionally prepared aesthetic description of the internals and externals of a property, an inventory of all fixtures and fittings and their condition.
- Check In – the process of agreeing the inventory, the condition and cleanliness with the incoming tenant and registering of meters and keys.
- Property Visits – mid-term periodic inspections to check that the property is not being misused and that the tenant is adhering to the tenancy agreement.
- Check Out with Damage and Dilapidations – the report that determines the change between the start and the end of the tenancy, lists damages, missing items, the state of the cleanliness, property and garden condition, outstanding or due maintenance items, meters read and keys returned. The check out is carried out as the last act of the tenancy and is therefore usually carried out on the last day of tenancy.
Should the dispute end up at adjudication with one of the deposit schemes (ADR), the requirements for inventory management documentation are clearly defined as crucial. The onus is on the landlord to show why they are entitled to claim money from the deposit. The landlord must support their claim with robust and reliable evidence to show that the tenant has broken the tenancy agreement, and that the landlord has suffered, or is likely to suffer, a loss as a result.
The dispute service states the following:
“…..inventories that are not prepared by independent companies or individuals…..are likely to place less weight on their contents. It may also be necessary for a landlord to provide more corroborating evidence to show the condition of the property than would normally be required if the process was carried out by qualified and independent inventory clerks”.
“where landlords use their agents to conduct their check-in and check-out inspections………there is an added need to show that the process, and the person undertaking the inspection, was impartial. Adjudicators will take into consideration the general circumstances and relationship between the parties in determining what weight to put on the evidence”
“…..where a landlord puts the onus on the tenant to complete their own check in inspection, this type of check in is far less robust than a ‘full’ check in”.
“Just providing an inventory to the tenant and expecting them to note any discrepancies, or relying on a document that has not been signed, will not be sufficient to convince an adjudicator; the landlord will need to provide other evidence to show that their expectations and the tenant’s obligations were fully explained to the tenant”.
“Where a check-in is challenged by the tenant, a full audit trail of what remedial action has occurred should be provided and a revised check-in agreed and signed”
Further information on the requirements of the deposit schemes and other useful articles on inventory management can be found https://nolettinggo.co.uk/property-inventory-articles.html
From all the media stories, no-one is quite sure whether the property market is booming or not!
The simple answer is that the buy-to-let sector is doing very well but it would be doing even better if there were more new properties to buy. There’s an increasing market in the number of people looking to rent which means that demand is pushing up rents.
Indeed, the Council of Mortgage Lenders recently said that investing in houses and flats to rent is growing in popularity once more.
They say that the number of buy-to-let properties soared by 84,000 last year – with buy-to-let mortgages now accounting for nearly 13 per cent of the total outstanding value of home loans in the UK.
That means that investing in property to rent is a worthwhile proposition once again.
But let’s not kid ourselves about the current situation for prospective investors. While the buy-to-let market is picking up, it’s nowhere near the heady heights of the 2007 property boom. And most of the investors picking up properties for their letting portfolios are cash-rich investors.
It makes sense really: property prices are relatively low and rent prices are still fairly high which means that there’s a good return on your investment.
And the market for renting a home in the UK is continuing to grow.
Estate agents Countrywide say that last year, more than 275,000 new tenants registered for private rental accommodation – a 24 per cent increase on the previous year.
Across most of the UK there is a shortage of property to rent which means rental prices are remaining high and increasing in some areas.
Potential landlords can still buy property to enjoy the rental market using buy-to-let mortgages from many lenders. In fact, there’s so much competition for a potential landlord’s business that the average borrowing rate on a buy-to-let mortgage has fallen in recent months.
The headline of this article is: How is the shortage of new properties affecting the buy to let market? However, it would be wiser to read this as: How is the shortage of new good quality properties affecting the buy to let market?
That’s because the population of the UK is growing and it’s a relatively transient one – people are moving to where the work is and they are willing to pay for a good quality home.
Though there is no doubt that underpinning the buy-to-let market is the fact that not enough new homes are being built and people are living longer as well as the fact that there are more single person occupied homes.
For more information and advice on the current state of the buy-to-let market, contact the UK’s premium provider of landlord services NoLettingGo.co.uk or call 0800 8815 366.
No Letting Go are the UK’s leading provider of inventory management services, providing check in and check out services, property inventory and condition reports and specialist on site services to landlords, lettings agents and property professionals.
I am always interested in great property stories around the world and read an interesting article on CNN World about how it is now cheaper to buy than rent in most US cities ( http://money.cnn.com/2011/08/16/real_estate/buy_rent/ ) – if only that were the case in the UK.
Nick