Lettings agents must protect the interests of landlords, tenants, and their agencies, so understanding the basics of deposit protection is key and knowing the do’s and don’ts will help minimise disputes and reduce the risk of costly penalties.

Letting agents and landlords will be familiar with this phrase, however grasping the meaning and recognising the limits of this term can often be a disputed topic, particularly when making a deposit deduction.

Among the top sources of conflict at the end of a tenancy is cleaning, which accounts for the majority of disputes between tenants and landlords, a substantial 56% of all cases across the UK.

During the winter months, gardens and external areas of properties can begin to suffer, leading to disputes between agents, tenants and landlords. Dispute calls are typically at their highest this time of year, so ensuring all your paperwork is in order is even more critical.

Any lettings portfolio should receive ongoing care and maintenance. A disorganised portfolio, weighed down by junk data, loose ends or lax processes enabling wrongdoing, can disrupt the flow of operations, reduce productivity, expose the business to risk and add unnecessary pressure on agents.

According to insight from the Tenancy Deposit Scheme’s (TDS) 2022 Statistical Briefing, end of tenancy deposit disputes has shown an increase over the past year; however, the overall figures are still low.

Annually, Propertymark PPD (Principal, Partner or Director) members have to submit a Client Money Examination Report to be inspected as part of their membership, and for every company, they are legally responsible.

Letting agents should be aware of the financial implications of failing to deregister tenant deposits after Propertymark reveals it is the most common cause of accounting discrepancies among its membership.

The UK Government has proposed some key changes to the PRS, outlined in the Fairer Renting White paper with pet ownership to become more accessible for tenants. With just 7 per cent of properties stating they are ‘pet friendly’, there are ways to reduce the likelihood of deposit disputes.

Propertymark was one of the founders of TDS in 2003 along with RICS and has been continuously represented on the Board ever since. Emerson, Propertymark CEO replaces Mark Hayward, who retired at the end of 2021.

Agencies outsource client accounting to reduce costs and focus on core business goals and planning. The challenge is finding the right solution and partner. An outsourcing partner who best fits with a business is key to a long, happy, and successful relationship—saving you time and money.

TDS has collaborated with various partners to improve the private rental experience for agents and landlords. New and improved features have helped to ensure that TDS stays up-to-date with current technology movements as the industry evolves.