Poor inventories are costing United Kingdom property landlords around £12 million a year in lost claims due to poor bookkeeping and a lack of prepared evidence when there is a deposit dispute. Since 2007, when the Tenancy Deposit Protection Scheme (TDPS) was brought in, it has been down to the responsibility of the landlord to prove their case, but because landlords are not having properly prepared inventories and also not having enough evidence, the landlords chances of being successful in a dispute with a tenant is less than 1 in 10.
Last year there were a total of 23,500 deposit disputes and this figure is growing fast every year. And in that period, a massive 92% of the disputes went in favour of the tenant, which cost landlords £12 million in lost claims, say the VIA (Video Inventory Agency) While the TDPS (Tenancy Deposit Protection Scheme) is there to protect the tenant, the private property market has been consistently undermined because of incomplete inventories. A professional video inventory is another expense for a landlord to add to other expenses such as landlord insurance, but in the long run it can save the landlord money because in a case of a landlord/tenant dispute it will be vital evidence. A video inventory is a perfect and cost effective way to give an accurate record of the condition of the property and all its contents, removing all scope for any problems that may arise from a disputes or claim. Also having an independent and professional video inventory carried out will stand up in court better than one which is self prepared.
Frazer Fearnhead founder of the VIA (Video Inventory Agency) said ‘When it comes to inventories, landlords have traditionally got away with the bare minimum. In my time I have seen inventories that have been scribbled on the back of an envelope. However, since 2007, the balance of power has swung in favour of the tenant. This is positive since many would-be cowboys have been pushed out of the market. However, it also means that law abiding landlords are losing money unnecessarily”
Frazer started TVIA after becoming a victim of a dispute with a tenant when an incomplete inventory on one of his own properties meant there was no evidence to back him up in a deposit dispute. So he decided to protect himself and the property community, an aim that he continues today. TVIA which is an official partner to the Residential Landlords Association now says that all landlords should protect their assets by paying more attention to inventories.
‘Video inventories are watertight and cost effective. A visual record speaks volumes and it is clear from our work that video inventories are the future for the industry. To minimise disputes, adjudicators need to have as much information as possible to help prove a case. With video content, there is no room for debate,’ added Fearnhead.