The issue of ‘compensation’ is shrouded in grey area and vague terminology which can leave tenants and landlords feeling confused, stressed, and overwhelmed. Here we will look at the question ‘when is it right for a tenant to ask for compensation?’. The Property Shop has over 20 years of experience in this field so let us give you a bit of clarity.
If you are a landlord with a buy to let property or a house of multiple occupancy, you are responsible for keeping the property in a ‘fit state’ for your tenants to live in.
What does this mean? Before your tenant moves in it is your responsibility as their landlord to ensure the property is in a ‘fit state’. This includes things like damp, pests, sanitation, fire safety, gas safety, and electricity safety. If one of these applies, a property is ‘unfit for habitation’:
Of course, sometimes things go wrong, break, or fail which will put the property into the ‘unfit for habitation’ state. Repairs or action will be needed to return the property to a ‘fit state’. Landlords are allowed some time to action this. How much time? Well, the term used is ‘reasonable time’, which is a very vague term.
It is in this grey area of ‘reasonable time’ that tenants sometimes feel they are not receiving a fair service and they ask for compensation or withhold rent.
If your tenant is withholding rent please see our advice on What to do when your tenant is withholding rent?
If it takes you more than ‘reasonable time’ to return the property to a ‘fit state’ and one of these things occur to the tenant, they are entitled to compensation:
For example, if the boiler breaks and a tenant is without water for a few hours, this is considered ‘reasonable’. But if the landlord takes weeks to fix the boiler, and the tenant has to shower at the gym for this period of time because there’s no hot water, then the tenant would likely be looking for, and entitled to, compensation.
There are things landlords can do in order to keep their tenants happy and avoid the issue of owing compensation or court action.
The best thing landlords can do is to make repairs quickly and efficiently, whilst keeping tenants in the loop. Telling tenants what to anticipate, and keeping them updated will help them understand that your actions are ‘reasonable’.
If and when you choose an agency, it is important to choose one who appreciates this, and ideally has reliable, in house, maintenance staff, like The Property Shop.
A tenant has up to 6 years to take legal action. This is reduced to 3 years for personal injury. This time starts when the work should have been carried out. Many tenants choose to wait until the tenancy is finished to claim because it is not unheard of for landlords to evict tenants claiming compensation.
It is important to note, if you wish to claim retrospectively, the tenant must have reported the issue to the agent or landlord during the tenancy. If a tenant doesn’t alert the landlord or agent to the issue how can they expect it to get fixed?
Often reaching a solution outside of court can save time, money, and stress.
Tenants: talk to your landlord and use the information you have gathered here. Explain why you believe the landlord owes you compensation. Make sure you keep records of each conversation. Consider reasonable offers, there’s no guarantee you’ll win the fight if you take it to court.
Landlords: If you feel that the tenant(s) may have a point, make them a reasonable offer. You may choose to offer them relief on their next rental payments for example.
Enlisting an experienced agent with the task of property management helps landlords and tenants avoid the frustrating and stressful ‘grey area’ of compensation claims altogether.
An experienced agent that offers comprehensive property management services, like The Property Shop, will know how best to maintain the property in a ‘fit state’ to resolve any issues in ‘reasonable time’. This is especially efficient when the agent you instruct has in-house maintenance staff and a 24 hour emergency contact phone number, like we do!
Renting and letting through The Property Shop is the best way to make sure tenants are taken care of, and landlords don’t have to deal with claims. Everyone’s a winner!
For more information visit our Property Management page or contact our team of dedicated experts at The Property Shop on 01273 915400 or at info@tpsb.co.uk.
Do you have any questions about the topic above? Our team of experts is here to help in answering any query you may have.
Fueled by his desire to be the best, most reputable estate and lettings agent in town, Steve has spent his career cultivating The Property Shop. Steve prides himself on his authenticity, honesty, and knowledge-base which is emulated by The Property Shop and his team.
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