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‘Damages’ Major Cause of Dispute between Landlords and Tenants in UK, Study

Damage caused to property is reportedly the major cause of dispute between landlords and tenants in the U.K., according to a survey conducted by the Online Letting Agents - a rental property website based in the U.K.

The research found that more than half, about 58 percent, of the landlords disputed with their tenants over damage to property either during or after occupancy. Decoration and rental arrears along with cleaning were the next two causes of disputes with 50 percent and 42 percent respectively.

The study, which analyzed about 300 landlords, also found that two thirds of the owners escalated disputes to the courts with about 20 percent of them pressing over $1,700 in fines on their tenants.

The website suggests that the landlords keep a check on the property to avoid disputes on damages.

"To help avoid disputes, it is vital that landlords carry out a professional inventory with a check-in and check-out at the start and end of a tenancy, to protect their property and deposit. What's more, landlords should make regular visits to check for damage during the tenancy," Eleanor Carroll, director of Online Letting Agents told Property Wire.

But damages are not the sole responsibility of the landlords. Tenants must comply with the terms of agreement as well. Even when decorating.

"Tenants need to be aware that they have a responsibility under the terms of the tenancy agreement to report promptly all repair requirements to the landlord. Failure to do so could make any repairs more invasive and costly and the tenant may be held liable in some way for failing to report them," Stephen Parry, commercial director at Landlord Assist told The Canterbury Times.

Late payment of rent was also a major problem. According to the survey, landlords had to wait an average of six weeks to receive outstanding payment and about 20 percent of the waiting landlords received the payment only after four months!

But, that is because rents have been rising at an alarming rate, driving many tenants to homelessness. According to The Independent, Citizens Advice Bureaux - a charitable organization - has seen a 38 percent spike in the number of people opting for housing benefit because they are being evicted by landlords, who throw them out on request of repairs or because they want to sell the house.

Landlords either want the tenants out or increase the rent to unaffordable levels.

According to the Daily Mail Online, cost of renting in the U.K. has risen four times faster than the average income in the past one year. Asking rents rose about 7.5 percent over the last 12 months, while the earnings were up just 1.7 percent in the same period. Home prices in the U.K. were also shooting through the roof, but the government stepped in right on time.

"It remains to be seen if anticipated central bank intervention in the mortgage market will stimulate further demand in the private rental sector at the expense of home ownership, and whether this will generate positive response from would-be buy-to-let landlords channeling some of their newly freed-up pension savings into investment property," said Martin Totty, chief executive of Barbon Insurance Group told the website.


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