The five key factors in assessing fair wear and tear
Find out the five key factors landlords should consider when evaluating wear and tear.
When assessing fair wear and tear, there are five areas we consider collectively, which are listed below.
Having all the information relating to these five areas ready before any negotiation can lead to a productive and positive discussion with your tenant and a successful resolution.
Being able to show something’s age is the first step to calculating a reasonable settlement when assessing the extent, if any, of a tenant’s responsibility. An older item will attract a higher level of wear and tear and you should always consider this when managing your expectation of what reasonable settlement to propose.
Do you know the age of your fittings, furniture and décor, and have the invoices to back it up? Are you proposing a settlement for an item which was brand new, or an area which was free of any damage and marks, when the tenancy began? Or has it already seen several tenancies?
Top tip: Keep all the invoices when you carry out work or replace anything and make sure they are detailed. The date of supply and/or fit will prove the length of time since things were new.
Spending more money on quality items is something to consider very carefully when you are preparing to rent out a property and, in terms of calculating fair wear and tear, this is very relevant when claiming for damage or replacement.
Knowing the quality of an item is most helpful when negotiating a like –for –like replacement cost, yet inventories rarely record the quality of items such as carpets, which cannot be seen in photographs, or sanitary ware. Was the carpet £12.99 or £28.99 a square metre when it was bought? Again, this means an invoice is invaluable when proposing costs for a similar item or quality of work needed.
Quality branded sanitaryware may, for example, last a long time, but it doesn’t mean that lesser, cheaper brands would not last the same amount of time. If a weight is dropped into a sink, it may crack whatever the quality.
However, the check-in inventory may, at the very least, contain good quality photographs and detailed description to help with any discussions needed, for example the make of an appliance.
Top tip: Make sure your detailed invoices are all kept safe as you never know when you might need them for discussing costs on a like –for –like quality basis.
Are your tenants students, professionals or families? Are any children and/or pets living in the property? How many bedrooms are there, and how many people are renting the property? These questions can all influence the expected level of fair wear and tear and may influence the lifespan of areas and items in a property.
Deterioration such as scuff marks, scratches and wear to flooring is unavoidable in all properties. You must consider whether the deterioration is reasonable or excessive, for the number of people and whether there are any pets living in the property.
A landlord who manages their own expectations will appreciate that if the rental property has six bedrooms and the tenants are a family with three young children and a dog, it is likely to experience a higher level of wear and tear in all the common areas such as the living room, stairs, bathroom and kitchen.
If the evidence shows that there is actual damage or deterioration which is over and above what is reasonable, having considered the type of tenant living in the property, then the tenant may be responsible for costs to put right the ‘excessive’ portion.
Top tip: Appreciate who your tenants are, and carry out regular mid-term inspections as this will highlight any problems early.
Every item and area has a shelf life. The life expectancy of an item, or area, can depend on its quality and the amount it’s used. This may be related to the number of hours in the day the property is occupied, the number of tenants in the property or how much that area or item is used.
The quality of the décor and appliances, for example, can vary drastically. Our consistent approach on the life of décor and carpet in a rented property, starts at five years although this can change, depending on the extent and quality of the evidence.
Other items, such as appliances, work tops, sanitaryware etc. will all be assessed on a case-by-case basis.
When looking to calculate what proportion of a replacement or redecoration cost is reasonable to discuss with your tenant, and the lifespan, you will need to consider the age and quality of the item, or area, to decide how many years it has already been used for and if its life is all but over. Remember, the tenant is not responsible for these years.
Top tip: Make sure any costs you are proposing do not amount to betterment, as with every tenancy there will have been some wear, even if it’s small.
The last thing to ask yourself when considering fair wear and tear, and before calculating any costs and proposing them to your tenant, is ‘how long has the tenant been living in the property’?
As mentioned, there will be more natural wear to the property the longer it has been lived in and used. Think about things such as how much more wear will a carpet or décor have had after one, two or three years, and what was the condition of it when the tenant moved in?
Top tip: The length of a tenancy is often a deciding factor when managing your own expectations on whether the item or area has little or no value left in it, because of its condition at the start and the length of the tenancy.
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