A new report reveals that the average length of tenancies has increased by 300% over the last two years, from 16 months in 2014 to four years in 2016.
Government figures show that the average length of residence for private sector tenants is up from three and a half years last year, to a new five-year high. The RLA is continuing to press the government to remove barriers to longer term tenancies, including restrictions imposed on landlords by lenders and by freeholders of leases.
However, while longer tenancies may be a good thing for tenants, landlords are out of pocket to the tune of over £5 billion every year because of damage to property and unpaid rent. Damage to landlords’ property sees them fork out an incredible £4.5 billion. (Source: Access Legal Survey, 2015).
According to Jax Kneppers, founder and CEO of Imfuna, landlords appear to be supporting tenants with longer leases, but it comes at a cost. “Property damage and ‘wear and tear’ are big issues 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. When this occurs, a landlord may decide to hold onto 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. Clearly landlords and tenants have different expectations when it comes to fair wear and tear issues. However, if landlords 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.
“Our inventory software ensures landlords and agents have a bulletproof inventory that records the property check-in condition status. The software provides a side-by-side comparison report which clearly demonstrates any change in condition of the property, illustrated with date and time stamped photographs.
“The software also gives landlords and lettings agents all the necessary property maintenance and repair costs for damage that are found during inspections. This allows landlords and agents to have a dialogue with the tenants over any repair costs that are found to be the tenant’s responsibility. It also presents landlords and agents with all the facts so they are able to make decisions on whether they want to delay repairs or carry out them quickly.”
Howard Lester, Director of Balgores Property Group comments “We have seen the length of tenancies in Essex rise by over 100% over the last three years. This has been largely due to the changing nature of tenants, with many making the conscious decision to rent rather than buy. Whilst this has obviously been good news for our landlords, it has meant the quality of the inventory at the beginning of the tenancy has become much more important, with the need to prove the difference between wear and tear and damage becoming paramount.
“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.”
Imfuna has put together some advice on what ‘wear and tear’ should be covered by the landlord and the tenant:
The Landlord:
-The landlord should expect to emulsion walls and ceilings every 3-5 years.
-Everything in a property has a limited lifespan. A landlord must expect to have to renew things following a long tenancy, eg. every year a landlord may need to renew things such as inexpensive door mats, plastic or cheap wooden kitchen ware, ironing board covers, lightweight chopping boards, oven gloves, cheap saucepans and paper lampshades. Replacing bath sealant also falls under a landlord’s maintenance issue after a tenancy of one year or longer. Every three years renewals for landlords would cover things such as polycotton bed linen, mattress and pillow covers, duvets, metal colanders, inexpensive kitchen bins, barbeque tools and indoor clothes airers.
-Some things should be treated as ‘expendable’ if they are missing or damaged after a long tenancy, items such as plastic toilet brushes, inexpensive pillows and mattress protectors, flower arrangements, plastic shower curtains, house plants, plastic & wooden kitchen utensils.
The Tenant:
-Should remember than if something can be cleaned it should be. Cleaning issues are never treated as wear and tear.
-The property, its contents and any exterior areas must be maintained to the standard as listed on the inventory as the start of the tenancy. A few minor marks to walls will be deemed wear and tear, but heavy marks will incur a penalty.
-If items are broken or light bulbs blown these will need to be replaced before moving out. It will be more expensive if an agent or landlord has to arrange outside contractors to attend the property.
-Furniture damage – a few minor scratches to a table top or light wear to corners could be deemed wear and tear. Heat marks and water marks caused by tenant negligence will be deemed as damage and therefore a chargeable issue.
The Imfuna Let app embraces the core skills of the inventory inspection routine and dramatically enhances the end product to produce a fast, reliable, professional report that, if needed, will stand up in court. Imfuna Let provides simple deposit scheme compliance, comprehensive property inspection data, transcribed dictations from your mobile device, fully customised branded reports, and a property report history available 24/7.
Imfuna Let automates the reporting process and reduces the overall process from property data capture to report generation by up to 75%. Imfuna Let can be used on current Apple or Android devices. Technology you can depend on.
Embrace the ‘Power of Digital’ in 2016 : Free Trial at www.imfuna.com/let-uk/
