Landlords keeping 56% of deposits
Fifty-six per cent of deposits are retained by landlords either partly or in full because of tenant disputes, a new study reveals.Alliance & Leicester reports that 56 per cent of deposits are eaten into by tenants causing landlords financial difficulties, with damage to the property coming top of the list for reasons to withhold deposit money.Twenty-six per cent of deposits are held due to tenants damaging the house or flat they rent in some way, with a further 21 per cent of deposits wasted on damage to furniture.A quarter of landlords retain deposit money because tenants have defaulted on rental payments while 15 per cent of money is withheld to make up for unpaid utility bills.Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, commented: "Being a landlord means gaining not just an additional property, but all the responsibilities that come with tenants living there. Landlord/tenant disputes can unfortunately happen all too often. Agreeing on an inventory, taking photos before tenants move in or employing a letting agency can minimise the risk of any arguments."Despite the new compulsory government tenant deposit scheme, which was launched in April to protect deposits, 53 per cent of landlords were unaware of the new legislation, while 23 per cent had heard of it but didn't understand what it entailed.
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