Deposit dispute process and the importance of thorough inventory and exit inspections

Deposit disputes can be a frustrating and time-consuming experience for landlords. However, by understanding the process and taking proactive steps, landlords can minimise the risk of disputes arising and ensure a smooth exit for both parties.

The initial inventory

A comprehensive inventory is crucial for resolving deposit disputes. It provides a detailed record of the property's condition at the start of the tenancy. When done correctly, it can help to prevent disputes by clearly outlining the tenant's responsibilities for maintaining the property.

What makes a good inventory:

Include everything: Document all fixtures, fittings, appliances, furniture, and decorations. Our inspections cover all bases to ensure nothing is missed.
Take photos: Visual evidence is invaluable in case of disputes. Our inventories often include upwards of 100 images, leaving no stone unturned.
Be specific: Note any existing damage or wear and tear. These details gathered during the inspection lay the foundation for a strong inventory report.
Get tenant agreement: Ensure the prospective tenant agrees with the inventory. We use an advanced inventory software that incorporates eSignatures to ensure an easy, official way for documents to be signed.

The exit inspection

An exit inspection is equally important. It provides a final snapshot of the property's condition before the tenant moves out. Compare the exit inspection to the inventory to identify any changes.

Key points for a successful exit inspection:

Be thorough: Just like the inventory, it pays to be hyper-detailed when conducting the exit. Our professional inspectors rigorously check over property conditions day in and day out.
Take photos: Document any damage or wear and tear. Photographic evidence of any changes in condition or damages will prove a valuable asset in any disputes that may ensue.
Test appliances: Ensure all appliances are functioning properly. An often overlooked element of the inspection, appliances may not look damaged but hidden issues could be costly if not spotted.
Get tenant agreement: Once again, obtaining the tenant's signature on the exit inspection report to confirm their agreement with the findings is crucial. Disagreements in findings will often lead to the dispute process, however, there's no need to panic. Support is available.

Other important considerations

It is important to know that both of these crucial documents must be accurately dated and time-stamped with information such as; when it was sent to the tenant, when it was signed, and when it was returned. Our industry-approved software gives us all of this information with the click of a button.
As a landlord, you have 10 working days to raise any deposit deductions. Once raised there will be a waiting period of a further 10 working days, however, once this is over it is an important consideration that without escalating the dispute further the tenant could delay the process indefinitely as they are under no time constraints to respond to the disputes.

The deposit dispute process

Once the dispute process begins, both tenant and landlord will be given a timeframe to submit any evidence supporting their claims. The dispute services will provide an estimated decision date, however, this is subject to variation. Supplying your evidence in this timeframe is critical, failure to do so will result in the dispute being ruled in favour of the tenant. Similarly, if the tenant fails to submit any evidence, the decision will be ruled in your favour.

In exceptional cases, there may be a need to escalate the dispute to the courts. This should only ever be done once the dispute process has been settled, or in rare cases where the tenant has refused to use the deposit dispute service (yes, that is a possibility).

If you have any questions on this process, would like anything clarified or think you'd benefit from a team of professionals to take away the administrative burden, don't hesitate to contact our team. You can email our Compliance Manager, Hannah, or call our office.

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