'Model agreements could lead to trouble'

Government proposals for a "Tenants Charter" are expected in the coming weeks - along with a model tenancy agreement.

The idea is to make life easier for both landlords and tenants.

But the Association of Independent Inventory Clerks has warned that longer tenancies will cause a significant rise in the number of deposit disputes over wear and tear and other issues.

Pat Barber, Chair of the AIIC, said: "It is clear there needs to be longer term tenancies available, especially for families. However, if the proposals go too far, it could be detrimental to the landlord.

"For example, the charity Shelter is calling for a new fixed-term, five-year to be introduced for all tenancies in the private rented sector, with rent increases linked to inflation.

"Under Shelter's recommendation, tenants will be able to leave the contract at any point with two months' notice for no apparent reason. This is a privilege that would not be extended to the landlord and could adversely affect the tenant/landlord relationship.

"There is also the big issue of 'wear and tear' in the property over a longer tenancy period. The longer a tenant stays in a property, the more likely it is that the property will be subject to wear and tear, and when this occurs, a landlord could decide to hold on to the deposit in order to cover the cost of repairs, redecoration and cleaning bills at the end of a long-term tenancy.

"Damage and fair wear and tear needs to be independently and expertly assessed in order to provide solid grounds for any charges raised against the tenant. Quite simply, this is not an area for landlords or management companies to try and undertake themselves, as any damage missed at check-out cannot be later charged to the former tenant, ultimately leaving the landlord to foot the bill.

"Landlords and tenants have different expectations when it comes to fair wear and tear issues, so it is no wonder that so many tenancies end in dispute. Normal wear and tear is a fact of life with rental properties, just as it would be at home, but if landlords and agents wish to avoid the hassle of arguments over who is responsible for damage, they need to prepare a thorough inventory of the condition of the property that details the condition of everything in it. And since a detailed inventory is designed to protect both the landlord and the tenant, it is not unreasonable to suggest splitting the cost of having one professionally prepared.

"Most tenants are aware when they have caused actual damage to a property and usually try to hide the damage subtly, which is why is it absolutely vital for landlords and management companies to ensure that no proverbial stone is left unturned when looking for damage at check out.

"Obviously, there is a distinct difference between fair wear and tear and actual damage - for example carpet tread will flatten over time, where there has been foot traffic, but cigarette burns, stains or soiling will require a charge.

"The best way to avoid costly deposit disputes is to ensure you have a comprehensive inventory in place at the start of any new tenancy and that a thorough check-in and check-out report is completed. Members of the AIIC are experts in assessing fair wear and tear and have the knowledge and experience to take into account all factors and make a reasonable judgement as to whether something is fair wear and tear or not.

The AIIC has put together some advice on what "wear and tear" should be covered by the landlord and the tenant.

Please see attached document (below)