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Inventory Clerks And The Tenant Deposit Scheme
The 6th of April 2007 is behind us and the Tenant Deposit Scheme now open for
business to landlords and tenants. What are the implications of the scheme
however? There are no doubt many implications, but one term often mentioned and
yet little discussed it seems, is that of the "evidence-based scheme". Letting
Agents and Landlords now have to grapple with the TDS and all its ramifications.
Whatever flavour of the scheme landlords use, whether insurance based or
custodial, to avoid disputes going to the courts, both schemes are supported by
an Alternative Dispute Resolution (ADR) service - although the use of an ADR
service is not compulsory under the legislation.
But if used, any dispute at the end of the tenancy can be referred to the ADR
service provided both parties agree to be bound by the ADR decision. If either
party does not agree to use the ADR service, the option of referring the dispute
to the courts will remain. We are told that the ADR service will be impartial
and evidence-based.
Even if either party opts for the court route instead of the ADR route to settle
disputes, they still require evidence for what is claimed. In other words again,
their claim must be evidence-based.
Tenant Deposit Solutions (TDS), one of the alternative dispute resolution
services, will offer what they call aggrieved tenants an "independent, impartial
and evidence-based resolution to any claim".
NLA chairman David Salusbury, who is also chairman of TDS goes on to say that
"Our insurance based scheme will enable landlords to hold deposits, giving them
a form of security against any damage that may occur during a tenancy". But what
if a claim is made? "What evidence will landlords require to validate their
claim" asks Jonathan Senior, head of training for Inventories Online Ltd, a
nationwide and web-based, inventory clerk training and booking system. Evidence
surely means "having some form of data verifying compliance with the scheme" he
continues.
Such evidence is a "good inventory" according to Inventories Online. But there
are inventories and there are inventories, they say. Some scant and limited in
detail, some excessively detailed and difficult to read and understand. Some
have been seen on Post-It notes and even once on a scrap of crumpled tissue
paper.
In order that any ADR service is fair when deciding on deposit apportionment,
the service will surely require that complaints are accompanied by sufficient
and relevant evidence, evidence which is "accurate, detailed and verified"
according to Senior, "a rarity" he says in his experience. "So few inventories
are signed for by both parties, its no wonder we continue to witness grief at
end of tenancy periods" he goes on to say. "I continue to see landlords lose
money, all because they are unable to verify by way of a tenant's signature,
that which they are claiming for".
Anecdotally we still hear of courts favouring tenants where deposits are in
dispute. It is little wonder when courts have little or no evidence to work with
that they award in a tenant's favour. Although it is possible that a landlord's
claim was valid in its own right, it will fail if not backed up by evidence. In
the absence of evidence, the courts have shown time after time that they will
give the tenant the benefit of the doubt or simply throw out the case for lack
of evidence.
To avoid unnecessary claims therefore, or even to help either landlord or tenant
to succeed with a claim, providing the claim is justifiable that is, landlords
and tenants must obtain a 'proper inventory'.
Be warned though, photos on their own are insufficient, they are difficult to
verify. We know with today's technology one can manipulate such media to suit a
need. Photos accompanying or even better still, embedded within a signed
inventory make for good evidence. Video is almost certainly out of the question
on its own. "Where can you sign a video" asks Jonathan Senior.
What both parties must sensibly have at time of tenancy start is a 'good
inventory', with or without photos. One which is agreed to with any appropriate
alterations included; and ensuring it is dated and signed by both landlord
(agent) and tenant, no differently than with a tenancy agreement. Landlords or
agents wouldn't dream of a tenancy without an agreement, so why not have a
signed inventory at the same time. Without this, how can an ADR service or
court, if it comes to it, find fairness?
A good inventory lists each room within a property, then lists each component of
the room, that is a door or window, the ceiling and walls, lights and floor,
even power sockets and switches. Then each item of content is added; furniture,
kitchen items, bathroom fixtures etc. Each component and item is then given a
condition comment. If a claim is made the ADR service or courts can see what was
originally agreed upon and then what differences there are, thus allowing for
fair apportionment.
We are left with a problem however, says Inventories Online; there are still
only a few hundred properly trained inventory clerks in the UK. "We need several
thousand trained clerks if only half the current landlords and tenants want
sufficient support" Senior says. "Why is it that we have such a scheme without
addressing a simple yet fundamental need" he continues.
How can landlords or tenants provide appropriately detailed inventories without
the right information or training? Where can they find such help? There isn't
much it seems. There is no universally recognised standard. Certainly there's
nothing consistent, even within the industry. If one buys or downloads one of
the many inventory templates or inventory packs from bookstores or the web, you
will see they're inconsistent.
In time, especially when the ADR service and courts find themselves overwhelmed
with cases difficult to decipher, we may see an initiative to bring the
inventory clerk service to the forefront of the letting's industry
consciousness. Until that day we suggest landlords and tenants ensure they have
sight of, examine, comment upon and agree to a good inventory when signing their
tenancy agreements.
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