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In rental properties, a certain amount of depreciation is unavoidable. Over time, items and the property itself will naturally show some signs of ageing. This won’t be as a result of abuse or neglect by your tenants, meaning they can’t be held responsible for it. This is known as ‘fair wear and tear’. The question then, is how do landlords and agents distinguish between fair wear and tear and damage that has actually been caused by their tenants?
This article will explain what fair wear and tear is, as well as what factors affect it.
Fair wear and tear refers to the natural and gradual deterioration of a rented property and its contents. This deterioration happens as a result of everyday usage while the tenant is living in your property.
In residential lettings, fair wear and tear most commonly means damage to carpets, decorations, fixtures, fittings and furniture.
Landlords need to bear in mind the age, quality and expected lifespan of these items when making decisions as to whether the deterioration of an item falls under fair wear and tear or damage caused by tenants.
Damage caused by a tenant doesn’t fall under fair wear and tear as it isn’t counted as naturally occurring. Some examples of this include broken toilet seats, ripped carpets, smashed mirrors and missing door handles. In these cases, landlords are entitled to take some money from their tenant’s deposit to pay for repairs, as per the tenancy agreement.
The term ‘betterment’ goes hand-in-hand with assessing fair wear and tear. Betterment is when compensation for damaged items would leave the landlord or property in a better position at the tenant’s expense. For example, replacing a five-year-old carpet with a brand new one.
Betterment applies to the condition and cleanliness of items alike. A valid claim where fair wear and tear applies should only relate to the proportion of damage or deterioration over and above what is reasonable use, due to the tenant’s actions.
When assessing fair wear and tear, there are several factors to consider (we’ll be going through each of these below). Having all the necessary information surrounding these factors will help enable a productive discussion between you and your tenant surrounding fair wear and tear.
The older an item is, the more wear and tear it will have already suffered. It’s important to manage expectations of what a reasonable amount of wear and tear is. It’s helpful to keep invoices of purchased items as this will allow you to prove the age of your fittings, furniture and other decorations.
Logically, the more you spend on an item, the less it should suffer from natural wear and tear. The quality of an item is useful in helping to negotiate a like for like replacement cost, yet most inventories don’t record the quality of items like carpets. Again, this shows why keeping invoices can be a huge help when it comes to proposing costs for similar items or repairs.
The life expectancy of an item (or a part of the property) will depend on its quality and the amount it’s used. How much it’s used could be determined by the number of hours a day the property is occupied or the number of tenants living in the property.
As the quality of decor will hugely vary, a fairly consistent approach is to expect these kinds of furnishings to last for around five years. You can then assess other items like appliances and work surfaces on a case-by-case basis.
Always bear in mind the age and quality of an item when it comes to fair wear and tear. Remember, your tenant isn’t responsible for the years something was in use before their tenancy began.
Who is living in your property? Are your tenants students, young professionals or a family? Are there any children or pets living in the property? How many bedrooms are there and what’s the total number of tenants? These questions can all influence the level of wear and tear you can expect during the tenancy.
Before agreeing to a tenancy, a landlord should be aware that a family with small children and a pair of dogs are going to cause more wear and tear than a young couple with no pets. If the evidence shows that there is actual damage that goes beyond what’s classed as ‘reasonable’ then the tenant may be partially responsible for repairs to this area.
Finally, consider how long the tenancy has lasted. The longer a tenant lives in your property, the more natural wear will occur to your furniture, fixtures and fittings. If a sofa was already starting to look a little worn at the beginning of a tenancy and three years have since passed, then it’d be unfair to try and blame this wearing on your tenants. This is where an inventory comes in handy, as you’ll be able to see what the item in question looked like before the tenancy began.
It’s important to realise that fair wear and tear only applies to the condition of an item or property and not its cleanliness. When tenants move out of a property, it should be cleaned to the same standard as when they moved in, regardless of if they’ve been living there for 1 year or 10 years.
‘Fair wear and tear’ versus ‘damage caused by the tenant’ isn’t always black and white which is why disputes are fairly common. Having a detailed and accurate inventory will make a big difference when it comes to avoiding these disputes between tenants and landlords.
Pat Barber, Chair of the Association of Independent Inventory Clerks said: “The best way landlords and agents can ensure that the property’s condition is fully recorded is by having a comprehensive inventory in place at the start of any tenancy, and that a thorough check-in and check-out report is completed.”
Your inventory should include details of all furniture, fixtures and fittings in your property, preferably broken down room by room. These details need to include the current condition of all items. You should also include the condition of paintwork, walls and flooring.
Where possible, we’d recommend conducting a walk-through inspection with your tenants before they move in to take pictures to document the condition of your property and its contents. Both you and your tenants should sign the inventory to confirm you agree with what’s included in it.
Upon moving out, you should then perform another walk-through inspection with your tenants. This time, you’ll be looking for any changes to the condition of your property and its contents. You should make a note of anything that you believe to be tenant damage, rather than fair wear and tear, and then explain to your tenant why this is and what amount will be deducted from their deposit. Your tenant will either agree or dispute your findings.
Provided the damage has been caused by tenant neglect or abuse and you can provide all the necessary evidence that the damage occurred within the tenancy then you shouldn’t have an issue in successfully claiming the amount from the tenant’s deposit.
Wear and tear is something that naturally occurs over time as a result of repetitive daily habits. On the other hand, damage isn’t natural and can be caused by carelessness, recklessness and negligence.
If the deterioration of an item hasn’t occurred as a result of abuse or neglect then the tenant can’t be held responsible. If a tenant has caused damage then they can be held accountable, as per the tenancy agreement.
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