‘Most used’ deposit scheme claims its dispute rates are the lowest

New figures show that, despite discrepancies between the deposit schemes, the dispute rate is incredibly low.

The custodial service, the Deposit Protection Service, says that its data shows that it is not only protecting most deposits but that its users experience the lowest percentage of disputes.

In the past 12 months, the DPS has recorded just 8,945 out of 1,105,619 tenancies (0.81%) needing to use its adjudication service at the end of a tenancy.

The DPS says this compares with 1.02% and 0.87% for the other two providers –  Mydeposits and TDS.

The most common reason for a dispute, says the DPS, is alleged property damage, with cleaning and redecoration requirements close behind.

More bizarre claims dealt with by the DPS have included removal of cockroaches and repairs to a garden after a tenant had dug up a dead pet dog.

At the end of the dispute process, the figures show that the DPS has returned 18.5% of deposits in full to the landlord or letting agent, compared to just 9% by Mydeposits, and 18.21% for TDS.

In total, 54.7% of the DPS’s disputed deposits have been split between both landlord and tenant and 26.8% have been refunded in full to tenants.

DPS director Kevin Firth said: “Landlords and lettings agents are as worried by bad tenants as tenants are by bad landlords and letting agents – but both sides can be assured that they’re dealing with a completely impartial dispute service should they need to use it.

“The DPS’s track record is solid – we consider all the evidence provided in the case carefully, and make an unbiased decision, as demonstrated by these latest figures.

“As long as a claim is substantiated with conclusive evidence, tenants as well as landlords should be warned they can’t expect to default on rent, cause damage to properties or fail to fulfill tenancy conditions and then look for a deposit pay-out.

“Our  adjudicators work hard to weed out false claims.”

The pictures show a rental property on the day a tenant vacated.

Property on day vacated by tenant 2

Property on day vacated by tenant 3

Property on day vacated by tenant

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