Student rental specialists, StudentTenant.com, examined the alarming problems faced by every student and landlord; settling deposit disputes at the end of the academic year.
In 2016, four in ten students (196,766) students had some or all of their deposits kept by landlords; costing students a total of £32m in 2016. Landlords cited professional cleaning (52%), damage to fixtures and fittings (24%), excessive wear and tear (22%) and just 5% for unpaid bills as the reasons for holding back deposits.
It’s hardly surprising that a vast amount of students do not receive their deposits back in full at the end of a tenancy when just one out of five student tenants sign photo inventories prior to moving in. Students have little to no evidence of deposit disputes occur, costing them a third of deposits (£164 each) on average.
Research carried out by StudentTenant.com found that over 75% of withheld deposits were due to professional cleaning fees; walls needing painted, bathrooms or kitchens needing cleaning or the removal of waste from the property. Further, landlords were holding up to a quarter of tenants deposits to cover the cost of rent arrears or unpaid bills which were accrued over the tenancy period.
Danielle Cullen, Managing Director at StudentTenant.com, commented “With over half a million students renting in private accommodation in the UK, there is huge scope for problems and disputes. Without having proof of the condition of the property before moving in, students are risking losing deposits when they move out as it’s their word against the landlord. Both parties must protect themselves and the property and inventories are the single most important thing. They both need to agree and sign a full inventory so, if for any reason there are any problems, there’s physical evidence to back up claims. If there isn’t an inventory available, students should request an inventory check or take photos the day they get the keys and send them to the agents. At least then they have some visual proof of the condition of the property at the end of the tenancy.”
Further research found that a small proportion of landlords did not put student deposits into government protected schemes. Some landlords were holding tenants deposits in private bank accounts; breaking a law introduced in April 2007. Many students are unaware that it is mandatory for all private landlords to protect deposits through a government backed tenancy deposit scheme. Students are legally allowed to request deposits are put in a scheme, and landlords must legally oblige and show paperwork. If they don’t, within 30 days, legal action can occur and students can claim up to 3 times the amount of the deposit through legal proceedings. Research found that one in four students living in rented accommodation did not receive details of deposits being put into government-backed deposit schemes.
Danielle Cullen continues, “Students must be made aware that they have a right to see paperwork to prove their deposits are protected by one of the schemes. Landlords are legally obliged to put deposits into these to protect themselves and their tenants within 30 days, but it’s just not made clear enough for students. Having said that Landlords do also need more support from the government as they are often expected to know more information than is readily available. There are so many things to think about when moving into a property, but ensuring your money is protected should be top priority. This applies to both landlords and students, and the schemes are there to protect all parties.”