Honesty And Good Communication With Tenants Is Vital

Wednesday, September 2, 2015
Honesty, Good Communication And Tenants Liability Insurance Are Crucial To Avoiding Tenancy Disputes

Honesty, Good Communication And Tenants Liability Insurance Are Crucial To Avoiding Tenancy Disputes

Honesty And Good Communication
Are Crucial
To Avoiding Tenancy Disputes

New research from one of the three Government approved tenancy deposit protection scheme operators, my|deposits, has highlighted the importance of honesty and good communication between landlords and their tenants at the end of a tenancy, in order to avoid getting into a tenancy dispute over deductions from the tenant’s deposit funds. However, the research doesn’t take in to account the use of widely available specialist insurance policies to avoid deposit disputes.

The research conducted among landlords and tenants renting property in the private sector without a tenant liability insurance policy, discovered that just under a third (30.1%) of notified deposit disputes didn’t proceed to a formal alternative dispute resolution adjudication over the last twelve months, with my|deposits taking credit for asking landlords and tenants to communicate first.Tim Frome, Legal Services Manager at my|deposits, said “Whenever we receive notification from tenants of a potential dispute we always recommend they speak to their landlord first. The value of sitting down and discussing the reasons for any proposed deductions to the deposit can help lessen the likelihood of a formal deposit dispute. It’s always worth trying to negotiate as the formal dispute resolution process can take time. Landlords should remember that the deposit is the tenant’s money. If the tenant doesn’t agree with any deductions then they have the right to raise a formal dispute with their chosen deposit protection scheme to reclaim the deposit money”.

However, tenancy disputes over property damage can be avoided and tenant deposit funds can be protected, simply by landlords being honest and up front with tenants at the start of a tenancy, informing tenants about their responsibilities to the upkeep of the rental property and by using the best specialist insurance products available on the market to make life easier for all involved.

Tenants can avoid losing all or part of their deposit funds by taking out a simple and effective tenant liability insurance policy that can cover damage caused to the fabric of the rental property as well as fixtures and fittings in a rented property up to the value of £2,500 (GBP) for as little as £60 (GBP) per year.

Accidents can happen to even the most careful of tenants and paying for property repairs can be expensive, but, even if the damage is accidental it is still the tenant’s responsibility to pay for the repairs or the landlord will be entitled to deduct the cost of the repairs from the tenants deposit funds.

This was written by Mike Clarke. Posted on at 10:30 am. Filed under Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.