Make sure the landlord has no excuse for keeping your deposit
The Guide Top Ten, The Scotsman, 24th October 2009
Each week The Scotsman gives you a top ten guide to pertinent financial issues. A scheme to safeguard rent deposits is to be introduced in Scotland to cut the number of delayed and wrongly withheld deposits at the end of tenancies. But until that is in place, what can tenants do to maximise their chances of getting their deposit back? Diarmid Mackenzie Smith, director of letting and management at Rettie & Co, shares his top tips on protecting tenancy deposits.
1. Where does the money go?
There should be no financial incentive or commission paid to the letting agent through any cleaning or deposit checks undertaken following checkout. Any costs deducted from the tenant's deposit should be used purely to pay for work needed to return a property to tip-top condition. If tenants do feel there have been unjust deductions from the deposit, then they have to take any action against the landlord, by whatever means they feel is appropriate - contacting their solicitor or the Citizens Advice Bureau, or through the Smalls Claims Court.
2. Fair Wear and Tear
Tenants should be aware that when using the services of a letting agent, the agent has been employed by a landlord to ensure that the property is returned in the same condition as when let, "less fair and wear", so understanding the agent's definition is imperative before signing the tenancy agreement.
3. Keep an Inventory
A full and detailed inventory of both condition and content should be submitted to the tenant at the beginning of the lease. The tenants should be invited to check, sign and return the inventory to the agency, confirming they are happy with the content. If there is agreement between parties at the beginning of the lease there should be no reasons for disagreement at the end. Tenants should ensure that any faults or discrepancies in the property at the beginning of the lease are clearly indicated to the agent either for rectification or simply for noting down to ensure blame is not passed to them at the end.
4. Safekeeping
The tenant should ensure that the letting agent holds the deposit in a secure deposit account. This is a separate deposit bank account from other client accounts. This is not yet compulsory in Scotland but it is for Royal Institution of Chartered Surveyors registered letting agents, whose deposit and clients' accounts are reconciled daily.
5. Good Habits
Ensure the property is kept constantly clean during the tenancy. Trying to undertake a catch-up clean at the end of a tenancy is not sufficient, as non- rectifiable deterioration will have occurred. Treating the property as if it were your own is always a good habit to get into when renting.
It is always extremely important to ensure that the property is thoroughly cleaned at the time of departure. Many reputable letting agents offer the services of professional cleaning firms to assist with unwanted cleaning. Ask for a quote in advance to take the pain out of the move.
6. Leave it as you found it
Returning the property in the condition you found it, including ensuring the furnishings are in the same rooms as they were at the beginning of the lease, makes life easier for all parties: the old tenants, the new tenants and the agents.
7. Oversee the inventory
At the end of the tenancy the tenant should be present when the agent or inventory clerk checks out the property and ensure that they go through the original inventory submitted and signed by the tenant at the beginning of the lease.
8. Money Matters
It sounds obvious, but tenants must ensure the letting agent has a record of new contact details and bank details for the transfer of returned tenancy deposits. Tenants should also be sure to change mailing addresses for gas and electricity accounts and cancel broadband, telephone and TV services.
9. Deposit Ownership
The deposit is the property of the landlord during the period of the lease, even if the agent actually holds the deposit. The agent should give the landlord impartial advice as to any deductions following the checkout, but remember the agent has a contract with the landlord (and not the tenant) and so has to make deductions according to the landlord's instructions.
10. Deposit Return
Most agents should be able to return deposits by electronic banking, and this should be the preferred option by both parties because it is cheaper and easier for the agent and the funds clear more quickly for the tenant. Bear in mind that if the value of the disputed amount is known, then the remainder of the deposit should be returned to the tenant while the difference of opinion is hopefully settled. The agent should not sit on the larger balance while the smaller amount is debated, and therefore the tenant should not be out of pocket.