With summer now well and truly over, this month we are sharing tips on how you can prepare your property for winter - for both landlords and tenants.

We also have reports for you on the real reason it is taking so long for tenants to get their deposits back after they've moved out, and what tenants are expected to do when moving out of a property (that will help avoid deposit deductions!).

This months' buy to let deal is a small family home in need of some TLC -  ideal for an investor looking to do a light refurb -,  and we have the first property to let on the new Hendrefoilan Estate in Killay! 

- Hannah, Managing Director

Mortgage lender Nationwide has reported that nearly a fifth of tenants renting from private landlords or agents are waiting more than 3 months to get their deposits back.

Nationwide and subsequent media articles on their report shine the spotlight on landlords and agents, suggesting the fault lies with them. However, backlogs with disputes and wrongful claims with the deposit protection providers could be the real culprits for the delayed settlements and returns.

Dispute Backlogs

Research conducted by Nationwide has found nearly one in five tenants wait more than 3 months for the return of their security deposits. One in four wait more than 6 months.

But almost half reported that they received their deposit back within 1 month.

Policy Director of the Residential Landlords Association (RLA), David Smith, has suggested disputes are the cause of these delays.

If a landlord and tenant cannot come to an agreement over deposit deductions, they can elect to submit the claim to an alternative dispute resolution (ADR) service. These services are administered by the deposit protection providers, and the providers then implement a timeline for when information can be submitted and reviewed, decisions made, and deposits returned.

Despite a misquote by the BBC in their recent article on the subject, undisputed portions of the security deposit should be returned to the tenants within 10 days. Different protection providers outline different time frames for contacting tenants to discuss deposits where there are deductions to propose.

Speaking with the Deposit Protection Scheme (DPS) this week, McCartan Lettings were advised that they have a backlog of decisions to make. This backlog is causing the DPS to break deadlines they themselves have set, which is leaving both landlords and tenants out of pocket.

The DPS would not comment how long they needed to clear the backlog, only for us not to contact them within 2 weeks about a particular case. 

Wrongful Claims

Looking at the research, industry news outlet Property Industry Eye noted that two in five tenants surveyed had been charged for wear and tear.

Wear and tear is one of the main reasons for deposit disputes. Working out what constitutes "fair" isn't always easy to do when it comes to rental properties. In most cases, there needs to be an apportionment calculation made on top of that as everything inside a rental property has a lifespan which is always depreciating. If you’re like to read more about wear and tear and apportionment, please click here.

Knowing how to propose reasonable deductions and having evidence to support them is crucial to obtaining swift resolutions.

But even where reasonable deductions are proposed without the involvement of independent adjudication, there can be issues. McCartan Lettings have discovered that there is an issue with the DPS system that means landlords and agents can't accept counter offers put forward by tenants when they are negotiated. Landlords and agents are instead forced to submit the deposit for ADR, needlessly adding to the aforementioned decision backlog and resulting in delayed returns.

Specialist Lending Director for Nationwide, Paul Wootten, comments "To ensure all private tenants have a better and more uniform experience, we need to consider more pragmatic solutions, including transferring deposits from one tenancy to the next, providing appropriate short term loans and guarantees.”

What is a Deposit for?

What Wootten doesn't take into account is the point of the deposit, how landlords and agents are to issue Prescribed Information, the effect taking out a loan might have on a tenant's credit score, or the ethics of encouraging tenants to start new tenancies in debt.

He also doesn't address how this would work in relation to overlapping tenancies. Although a tenant shouldn't have two Assured Shorthold Tenancy Agreements in place at one time, it is not an uncommon practice for tenancies to overlap by a couple of weeks to allow tenants to physically transfer their belongings between properties.

Hannah McCartan, MD McCartan Lettings comments “acting swiftly to ensure the return of a tenants deposit or release to the landlord for legitimate reasons is crucial. What we are seeing on a daily basis is the DPS under pressure due to an extreme backlog in disputes. From what we can see of their new system, it seems to be stemming from not being able to negotiate and agree returns, and instead we are being forced to go into ADR with tenants. This shouldn’t be the case and the DPS need to urgently review their working procedures. 

Avoiding end of tenancy disputes is also key. We are constantly working with our landlords and tenants, setting expectations for ending a tenancy, and educating them on the processes we have to go through to minimise the risk of a dispute”. 

If you’re looking for a proactive agent, give the McCartan team a call on 01792 430100.

Sources: BBC / Property Industry Eye

Related: What is Fair Wear and Tear? / 4 Tips to Make Your Rental Feel Like Home

Despite what the news would have you believe, deposit deductions aren't inevitable. The key is to return your rental property in the same condition it was let to you in. 

Depending on how long you've been living at the property, certain levels of wear and tear may be considered fair - and thus not deductible from your deposit. Check out our previous blog on wear and tear and when it's fair by clicking here.

It's advisable to attend your check out meeting if given the chance, though if the things brought up during it aren't immediately fixable, you won't be able to return to the property to fix them!

7 Tips to avoid Deposit Deductions:

• Use your check in report as your guide. Your check in is the standard your check out will be compared against. 
• When cleaning, don't forget inside the oven, hob (and any other appliances), inside cupboards, skirting boards, window sills, and grout between tiles. All mould and mildew should be wiped down. Don't forget to vacuum the edges of the carpets where fluff and hair get easily missed. 
• Gardens should be tidied, with lawns mowed and paths and patios cleared of weeds and leaf litter.
• If you have painted during your tenancy and the landlord hasn't given permission for the room to stay that colour, you'll need to return it to the original colour.
• If you've put up picture hooks during your tenancy and the landlord hasn't given permission for them to stay in the walls, you'll need to remove and fill them. Where there are a lot of holes in one wall, the wall may need to be repainted. 
• Never ‘touch up’ paintwork to hide scuffs or scratches - it's the whole wall or nothing!
• It might seem like a small thing, but put any contents, fixtures and fittings back where they were at the start of the tenancy. This makes it easier for the clerk conducting your check out to verify that they're still there and haven't been taken!

Cleaning 

Cleanliness is not subject to wear and tear and accounts for the largest proportion of deposit claims from tenants’ deposits. The Tenancy Deposit Scheme (TDS) reported that almost 70% deductions made are for cleaning for tenants aged 18-24 years old.

Damage

If damage has been caused during your tenancy, you'll need to make good on it (by replacement or repair) before vacating. If you're unsure how to do this, speak to your agent for advice. 

If you have taken out tenants’ liability insurance, contact your insurance company before you vacate to get the item replaced/repaired before you leave. If you’re not sure if you have this cover, check with your insurance company. 

Pets

If you have pets, it's likely that your tenancy agreement contains specific clauses about additional responsibilities upon vacating the property. Most contracts will state that carpets should be professionally cleaned and treated for fleas when you move out. Copies of receipts should be submitted as evidence of any work undertaken. 

If there are fleas active in the property, you can instruct Swansea Council to come out and treat them. This can take a few weeks and several visits to eradicate, so ensure you plan in advance of your vacating date.

Keep Your Receipts

When a tenant gives notice, we resend out copies of the check in report to them, along with a letter detailing expectations for how the property should be left and reminders of easily-forgotten areas to clean. Our reports are compiled by Libra Energy & Estates, and their clerks make themselves available to offer advice for moving out, too. 

Should you feel it appropriate to hire a professional cleaning company, we are always willing to recommend qualified and insured contractors to you. If you do have work carried out by a professional, make sure you keep and provide us with a copy of the receipt. 

We would recommend booking any work to be done with enough time for you to visit the property and check it over before handing in your keys. The liability for ensuring the property is left in a clean and good condition always lies with you. 

Related: Preparing Your Property for Autumn and Winter / McCartan End of Tenancy Guide

Now we’ve recovered from that unexpected scorcher of a Summer, it’s time to consider preparing your rental property for Autumn and Winter.

Maintaining your property is a necessary part of being a landlord. Planning maintenance in advance should help minimise any unexpected repairs and allow you to make more cost-effective decisions about how they should be done.

Tenants also have a responsibility to maintain their rental properties, and we would encourage an active approach to addressing that.

Landlords

Boiler Servicing: a regular service can reduce the likelihood of a breakdown and prolong the life of the boiler. Asking an engineer to carry out a service at the same time as your annual gas safety certificate checks can also reduce the costs (and the time!) associated with multiple visits.

Gutter Cleaning: though this is often assumed to be a tenant responsibility, gutter cleaning is actually a landlord job. This will help prevent blockages that, as well as being a nuisance, can cause damp within a property. Damp can be costly and take a long time to rectify. Prevention is usually easier than cure!

Christmas Call-Out Charges: if you self-manage, plan when you will visit your tenants next year and make sure they know how to contact you or a nominated contractor over the festive break. You don’t want to start the new year off paying a huge bill for an out-of-hours plumber your tenants were forced to call when they couldn’t get hold of you!

Tenants

Gardening: keeping gardens tidy, lawns mowed, hedges trimmed, and paths and patios free of weeds are all tenant responsibility. Start thinking now about your end of season tidy-up – and keep an eye on the weather!

Ventilating: don’t forget to heat and ventilate your property! It might be cold, but your home still needs air to circulate to keep it fresh and clean and free from mould and mildew. Consult the Rent Smart Wales Guide to Mould and Mildew for more information.

Bleeding Radiators: some tenants don’t realise this comes under their remit, but bleeding radiators is a fairly simple task that will help get the best from your heating system and keep it healthy.

Prompt Maintenance Reporting: this is the same all year round, but please ensure that you report maintenance promptly and to the correct person. McCartan’s managed tenants receive emails periodically reminding them how to report maintenance to us. The last one was sent in August, and we will be re-sending at the start of December.

Frozen Waste Pipes

With the bad weather we had last winter, there were an increased number of reports of boiler breakdowns due to frozen waste pipes. If your boiler stops working and you suspect your waste pipe is frozen, there are a couple of ways you can safely thaw it – click here to read the advice from the RLA on this. Under no circumstances should you conduct repair work on the boiler itself.

If you would like recommendations for any qualified, insured contractors, or if you’re looking for a proactive managing agent, please don’t hesitate to get in touch. Give the team in the office a call on 01792 430100.

Average Asking Rents, October 2018