Small proportion of tenancies end in deposit dispute

Figures produced by one of the country’s three rental deposit schemes shows that only a tiny number of tenancies appear to end in deposit disputes.

The Deposit Protection Service recorded only 8,945 out of 1,105,619 tenancies - equivalent to 0.81 per cent - needing to use its’ adjudication service at the end of a tenancy. This compared to 1.02 per cent and 0.87 per cent for the other two providers, Mydeposits and TDS.

DPS says the most common reason for a dispute is alleged property damage, with cleaning and redecoration requirements close behind – though there are sometimes more bizarre claims, such as for removal of cockroaches and repairs to a garden after a tenant had dug up a dead dog.

At the end of the dispute process, the figures show that DPS returned 18.5 per cent of deposits in full to the landlord or letting agent. Some 54.7 per cent of DPS’s disputed deposits were split between both landlord and tenant and 26.8 per cent were refunded in full to tenants.

“Landlords and lettings agents are as worried by bad tenants as tenants are by bad landlords and letting agents. As long as a claim is substantiated with conclusive evidence, tenants as well as landlords should be warned – they can’t expect to default on rent, cause damage to properties or fail to fulfil tenancy conditions and then look for a deposit pay out” warns DPS director Kevin Firth.