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Property Inventories Together With The Tenancy Deposit Scheme - How The Two Associate
Within rental contracts there may be provision for a landlord to get a deposit or a bond at the beginning of the tenancy agreement. The most important function of the deposit or bond is to serve as security against financial losses sustained by the landlord if a tenant fails to perform its commitments of the contract. The amount of deposit received by the landlord can be a sizable amount. The deposit will not constitute income to the landlord and must be returned to the tenant by the end of the tenancy if the tenant has faithfully carried out his or her commitments.
Having space to live in is a fundamental instinct for human beings. No-one likes to live in small surroundings but this is the reality for a lot of folks around the world.
To help reduce a variety of the problems connected with deposits, few countries have introduced schemes to reduce the misuse of the deposit. In the United Kingdom this is termed as the Tenancy Deposit Scheme. The Tenancy Deposit Scheme regulates the deposit since it is a legal prerequisite for a landlord to preserve the deposit very soon after the landlord has acquired it at the beginning of the tenancy.
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Proper protection of the deposit can be done in two ways. One way is by the landlord passing the deposit amount to a government authorized company who looks after the money on both parties behalf. The other way is for the landlord to obtain an insurance policy certificate from a government approved organization. With the second way the deposit will be held with the landlord for the total duration of the tenancy until the tenant has left the property. If the landlord has not returned the deposit at the conclusion of the contract then the tenant can speak to the administrators of the Tenancy Deposit Scheme to claim the money through arbitration. Arbitration will look at both sides' stories to find out if there are any feasible reasons for the landlord to withhold the deposit.
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Property inventories become significant in deposit dispute situations because these documents can be submitted as written evidence to support their cases. Mostly, the burden of proof is for the landlord to send the reason why a deposit should be withheld by the landlord. If the reasons are to do with property damage then the important document to send is the property inventory. The property inventory is a thoroughly written document signed by the tenant which states the condition and contents of the property when the tenant initially moved into the property. The landlord should also send evidence of the condition of the property at the time the tenant moves out. Any discrepancies in the property at the time the tenant first moved in and the time the tenant moves out can give a very good indication of how the tenant has or has not taken care of the property. It is crucial therefore that all landlords should record property inventories before it is leased out given that the case for withholding a deposit will be really weak when there is no written account of the commencing condition of the property.
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Property inventories can be written by organizations who specialise in the documentation of the condition and contents of residences and flats. These same property inventory services providers can also help in the mediation between the landlord and tenant if there is property damage to prevent the need to go to arbitration under the Tenancy Deposit Scheme. The wish by the government is for the landlord and tenant to work issues out together long before it goes to arbitration and property inventory services businesses do have lot of knowledge in mediating things before further devices of resolution are needed.
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