DPS shortfall is around £30 million

Looking at the last line of my previous post on this blog, I think it is fair to say that I spoke a bit too soon.

“I for one am impressed that the DPS, which is funded by the interest on the deposits it holds, has managed to keep going through such a long period of rock-bottom interest rates. Surely their contingency planning couldn’t have foreseen what is a sea change in fiscal policy. All power to them for adapting to a rapidly changing environment.”

It emerged in the press this week that the DPS had a clause in it’s contract with the government which required central funds (or The Taxpayer, if you read the tabloids) to bail out the DPS if it didn’t make enough money from interest alone. With interest rates so low for so long, the DPS, which is funded by interest on the deposits it holds, had gone cap in hand to the treasury, admitting to a projected shortfall of over £30million over the life of the contract.

Cosmetic Developments in Deposit Protection

The three deposit protection schemes have been actively updating their public presence of late and it seems to be paying off. My Deposits has just unveiled a very swish new website which has garnered them some good publicity and looks very user focussed and clean. TDS have recently received five accreditations from the Plain Language Commission for some of their key dispute documents which, to be honest, needed a bit of simplifying. All credit to them for improving their service. The DPS, meanwhile

Happy Deposit Protection Dispute Clients

I thought I would share some recent testimonials with you from satisfied customers of ADR Solution.

“I can highly recommend Tom's services. He has always been very helpful and willing to go the extra mile. He has a great level of expertise and knowledge. He has saved me a huge amount of of time and effort when having to deal with property issues. His company offers a very unique service which is extremely useful to any landlord who manages their own property. I have found him extremely good value for money!” 

C. Surujpaul, London

Student Deposit Dispute Season

If the weather is anything to go by, summer is upon us already, which can only mean one thing for thousands of landlords up and down the country: student changeover time.

In my, admittedly anecdotal, experience adjudicating deposit disputes, there are three groups of people responsible for significantly more damage to rented property than everyone else put together. They are:

1. Barristers (the shame!)
2. Doctors. I saw a defence from a tenant once that read “I don’t have to clean, I’m a doctor”. They didn’t win.
3. Students. It’s no surprise really. Students have a well deserved reputation for trashing properties and there will be very few student landlords who don’t need to make a claim on any protected deposits this summer, so here is some advice for landlords in the run up to changeover season.

Better Inventories Required

Better Evidence For Landlords

I have been very busy recently getting a new project off the ground which could really change the fortunes of landlords and letting agents in deposit protection disputes. 

The Problem With Inventories

All too often landlords lose deposit disputes simply because their inventory evidence doesn’t show what they need it to show. Inventory clerks tend to focus their attention on any parts of the property that are already damaged, whereas what landlords require is an inventory that shows the property in it’s undamaged condition at the beginning of the tenancy. Only with concrete evidence that the property was in good condition to start with can the landlord show that the tenant is responsible for any change in condition - damage to the property.

Ordinary inventories tend to come with a dozen or so photographs by way of supporting visual evidence. It is simply not possible with a few photographs to categorically demonstrate the condition and cleanliness of every part of every wall, every metre of skirting board, or the inside of every kitchen cupboard. 

A New Inventory

I have been working closely with the Video Inventory Network on their video inventory training course, developing a system that enables inventory clerks to take an average of 60,000 still images per inventory to corroborate their work.

Useful Guidance From The Deposit Protection Schemes

I was very pleased last week that the deposit protection schemes have finally got together to offer some joint advice on the dispute process. The advice itself is very practical and if you are involved in a dispute, I would recommend you read it. Each scheme has published their own version, but I am assured the text is the same in each. Even I am not dull enough to compare them. Read the booklet here:

The Future Of Deposit Protection Disputes

I had a really enjoyable day last week giving an inventory masterclass to the experienced team at Inventory House in London’s Docklands, who had asked me to consult on the format and content of their inventories. Their inventory product is already very professional and the guys really know their business inside out, so we were able to delve very deep into what makes a great inventory, touching on subjects as diverse as how deposit protection adjudicators arrive at decisions and awards, how to maintain admissibility of evidence for criminal court and how language is used to describe phenomena in quantum mechanics.

One of the recurring themes of the day was whether the deposit protection dispute model as currently practiced is sustainable and how the inventory industry, and other interested parties, might be able to influence any developments.

Several questions kept recurring which included: 

Whether the methodology for resolving disputes through adjudication could be standardised, as there is a feeling that the standard of proof was interpreted differently across the schemes?

Whether the schemes could agree a baseline of expected lifespans for commonly claimed for items (such as carpet) in an average tenancy, to prevent landlords claiming with unrealistic expectations, or unnecessarily pursuing claims that are without merit?

A feeling that the trained inventory professional’s opinion is underused led to discussion of whether a (self?) regulated inventory industry adhering to common standards could remove some of the burden from the deposit protection schemes’ dispute resolution departments?

Answers on a postcard please...