The Importance of Dealing with Tenancy Issues before they Escalate

At the NRLA we receive a lot of calls to our helpline from members who experience issues at the end of the tenancy about things that had come to their attention earlier, but were either not dealt with at the time, or had not been effectively resolved.  

Dealing with complaints early is vital to ensure a great relationship with your tenants – and to avoid problems down the line. Here experts from NRLA partners share their top tips to ensuring your tenancy runs smoothly.

Suzy Hershman, Head of Dispute Resolution at mydeposits and Mike Morgan, Legal Division Manager, Property Redress Scheme tenancy mediation service explain more.

Never put off until tomorrow what you can do today

Putting things off is a coping mechanism many people use, often without even knowing they are doing it, when they have to deal with something that might cause stress in the short term. But as a landlord this can be an expensive strategy!

This can mean that issues that arise during a tenancy aren’t dealt with at the time or are dealt with in such a way that they cause unresolved problems later on. When the end of tenancy arrives the small problem that has been allowed to fester has escalated and is now a big problem. This can cause a disagreement between the landlord or agent and the tenant about who is responsible, when the tenant is either leaving or has left the property. In a worst-case scenario, if no agreement can be reached it can end up in mediation, arbitration or even court. And in most cases the situation could have been avoided completely if the landlord had been made aware of the problem and dealt with it swiftly.

What are the most common end of tenancy disputes?

The most common dispute reasons are listed in order below, with most disputes (around three quarters) raised by tenants.

Cleaning costs: Leaving the property - or part of it - less clean than at the start of the tenancy is by far the most common reason for claims. Stains, especially, crop up time after time.

Damaged or missing items: Tenants should report any items listed on the inventory that are damaged or missing, tell the landlord about any damage that occurs during the tenancy (before any attempt to repair it themselves) and agree the next steps with the landlord.

Unauthorised changes to the property: Any changes made to the property without the landlord’s consent need to be rectified before the end of the tenancy, unless otherwise agreed with the landlord.

Gardening: The tenancy agreement should set out the tenant’s responsibilities for maintaining external areas such as gardens and patios etc. Ultimately, where the tenant has a responsibility to maintain the garden areas, they should be left in a similar condition to that recorded in the inventory – allowing for seasonal change or adverse weather conditions.

Rent arrears: In cases where the arrears are more than the deposit, the landlord may need a court order to recover additional costs. So, it is in the landlord’s best interest to make sure that arrears never get out of hand.

What are the best ways to avoid end of tenancy disputes?

It is possible to reduce the likelihood of disputes by simply and clearly letting your tenant know what you expect of them during the tenancy, what is and what is not allowed in the property and how it should be left when the tenancy ends. This can be achieved through:

Good paperwork

Several material issues can crop up at the end of a tenancy and a landlord may look for financial compensation. As always, a landlord’s best friend in reclaiming costs is documented evidence, which should include:

• a robust tenancy agreement that sets out what the tenant’s responsibilities are. Read more about tenancy agreements in Suzy Hershman’s guide for the NRLA, A landlord’s guide to tenancy agreements
• a detailed (updated) check-in/check-out report and inventory with photos and videos. Read more about property inventories in Suzy Hershman’s guide for the NRLA, Property inventories – why prevention is better than cure
• keeping a file (physical or digital) of invoices for property items and any work carried out
• keeping all emails and written communication between the landlord or agent and tenant

Building a good relationship and good communication with tenants

It’s important to start things off on the right foot with a new tenant and to maintain this throughout the tenancy:

• A comprehensive, detailed and well thought out welcome pack is a great way to make that happen. New tenants may be unfamiliar with the local area and if you use a letting agent, they are unlikely to have a connection with you directly so a pack including useful advice and tips on the local area may be very welcome. Add in details about the utility companies and provide copies of any appliance or electrical manuals as well as rubbish and recycling days. It should also include a reminder of their responsibilities (as in the tenancy agreement), such as gardening and cleaning 
• Housekeeping advice is particularly useful if you’re renting to younger tenants as what is common sense to landlords may not be to their tenants
• Details of who they should contact in an emergency or report a problem to, or if repairs are needed should be provided, as well as the steps to take in an emergency

Periodic visits and communications

• Schedule in visits at least every six months (more regularly if you have any concerns or the tenant asks)
• Update the inventory if required. Adding an addendum is the best way to do this
• Ask the tenant if they are experiencing any difficulties with anything in the property – avoid accusing them of anything

What happens if you don’t sort out an issue?

When tenants do report issues it’s essential that the landlord deals with the problem as soon as possible. Otherwise, you might find yourself out of pocket as the case study below shows.

mydeposits case study:

Damage claim for broken bed frame and blinds

Deposit:                      £1226

Disputed amount:      £458 

Award to landlord:    £127  

What happened?

The tenant said:

• They agreed to what was written in the check-in report, but after a few weeks they noticed the bed was moving when they lay on it and discovered the frame was cracked down one side, as was one slat
• The blinds were stiff to use at the beginning and during the tenancy and stopped working altogether when one of the slats and the cord both broke
• They reported both these issues to the agent when they happened
• The agent replied that they’d informed the landlord, who said he would arrange to sort them out but never did
• It is unfair for the landlord to expect them to pay for replacing the bed and blinds that they were not responsible for damaging

The agent responded:

• The tenants agreed to the check-in report, including photos which recorded that both the bed and blinds were in good order
• The check-out report shows the damage caused, which happened during the tenancy, and while the tenant did report the problems, they were well into the tenancy and should pay for putting them right
• The landlord wants the cost of replacing both items on a like-for-like basis

What evidence was provided?

• Tenancy agreement, check-in and check-out reports, emails, photographs and estimates
• The check-in report did say that the blinds and bed were in good condition and the photographs supported this
• The check-out report clearly showed the damaged blind with the cord missing and the cracks on the bed frame
• Emails between the tenant and agent were good evidence of when the damage was reported by the tenant, and the agent’s replies support that the landlord agreed to sort both things out

Bed frame

• The tenants reported the extent of damage they found, shortly after moving in
• The check-in report contains no evidence that the bed frame was examined before the tenants moved in
• It was unclear why the bed was not replaced during the tenancy, and it continued to deteriorate up to the point the tenancy ended (as evidenced in the check-out report)
• The adjudicator found that the tenant had discharged their duty at the start of the tenancy when they reported the damage to the agent

What was decided and why?

• With no evidence that the frame had been examined before they moved in, when the cracks could have already been present, the tenants were not found responsible for causing the damage and no award was made

Blinds

• The tenant reported that the blinds had broken after six months and included a photograph in their communication to the agent
• The photographs in the check-in report showed that the blind was in good condition and the written description also added that the blind was checked to make sure it worked

What was decided and why?

• On balance, the adjudicator decided that the tenant was responsible for causing the damage, but fair wear and tear must be considered and there was no evidence to prove the blinds were new at the start
• The landlord was awarded 70 per cent of the replacement cost claimed

What lessons were learned?

• Tenants should be encouraged to always report any problems as and when they find them
• Inventories should clearly describe items in as much detail as possible. In this case not lifting the mattress to check the bed frame was a risk taken by the landlord
• Landlords should always deal with issues when they occur to avoid any escalation at the tenancy end, as well as the potential for increasing deterioration to items that can be fixed
•  A tenant is only responsible for returning the property in the same condition as when they moved in, and fair wear and tear must always be applied. Read more about fair wear and tear in Suzy Hershman’s guide for the NRLA, Wear and tear – is it fair?

What are a landlord’s repair responsibilities?

The case study above highlights that as the landlord you are responsible for most repairs in the rental property to make sure you are looking after tenant’s safety and wellbeing. As well as furniture and fittings, landlords are required to maintain the:

• electrical wiring
• gas pipes and boilers
• heating and hot water
• chimneys and ventilation
• sinks, baths, toilets, pipes and drains
• common areas including entrance halls and stairways
• the structure and exterior of the building, including walls, stairs and bannisters, roof, external doors and windows
• redecoration if needed after problems are fixed
• the repairs or replacement of electrical white goods supplied with the rental property as part of the contract stipulated in the tenancy agreement

Note: The repairs must be completed within a reasonable period of time, which depends on how serious the problem is.

What about the responsibility for health and safety?

Unless the tenant’s fixed term tenancy began before 20 March 2019, the property is subject to being ‘fit to live in’, safe and free from any hazards such as:

• making sure that any gas appliances and systems are safe to use and checked every year
• checking that all electrical appliances, wiring and plug sockets are safe, with PAT tests carried out where necessary
• installing smoke alarms and carbon monoxide alarms where needed as well as providing extinguishers and fire blankets in properties that require them
• sorting any damp and mould which, left unattended, can cause serious health issues
• dealing with pests including rats, mice and insect infestations

As a landlord are you storing up trouble?

Some problems can’t wait until the end of a tenancy for a deposit claim to be made (or its alternative) as Mike Morgan, Legal Division Manager at the Property Redress Scheme tenancy mediation service, explains.  

“Mediation is an interactive, confidential way of sorting out disputes between landlords and tenants, with the help of a professional third person (an independent mediator) who won't take sides and tries to help both parties to work towards a negotiated settlement. It can be a quick way to solve a dispute. 

Below is a case study showing how mediation has been able to help with problems during the course of a tenancy.

PRS tenancy mediation service case study:  ‘The boiler won’t work’

• Dipa’s (the landlord’s) tenant had recently moved into the property and when they came to turn the heating on, found it wouldn’t work. An emergency engineer was called, using contact details inside the boiler
• On arrival the engineer found that the pilot light just needed to be lit 
• The tenant refused to pay the call out charge but agreed to mediation, which established that, had the tenant read the boiler operating instructions, which were at the property, its troubleshooting guide would have highlighted how to fix the problem
• The tenant understood that they had been hasty calling out an emergency engineer without trying to fix the problem themselves or speaking with the landlord first. They were though unhappy about the size of the bill and wanted Dipa to take payment from their security deposit
• Dipa was reluctant to do this, as it would reduce the amount of the deposit available at tenancy end

What was agreed? A payment plan was agreed that both parties were happy with. The engineer (Dipa’s regular one) agreed to a reduction in the charge due to the limited work involved, which Dipa paid, and the tenant agreed to repay this over three monthly instalments.

What lessons were learned? The tenant learned that they should contact the landlord if there are any problems in the property they are unable to solve. Dipa learned that despite instructions being on hand, they should remind the tenant of the procedure to follow if a problem arose and that a welcome pack would be a good addition.

In summary

Many tenants don’t feel the need to bother landlords with minor issues in the property that they can put up with. Worse still in the current climate the tenant might also feel vulnerable about pressing landlords for necessary repairs for fear of being evicted if they do. That’s why it’s more important than ever for landlords to stress to tenants that they want and appreciate any issues being brought to their attention as soon as they are found.

To achieve this and avoid having to deal with escalated issues at the end of the tenancy, landlords should:

• build and maintain a good relationship with their tenant and encourage them to report any issues
• make sure they carry out regular three, four or six monthly inspections to check the property is being well maintained and to spot any ongoing issues

In addition, with any deposit taken we recommend:

• you do not use the deposit to pay for any work needed during the tenancy as this will leave you in a weaker position at the end