What is Fair Wear and Tear? A Landlords Guide
At Rooms in Kent, we understand that as a landlord or letting agent, you may often come across the term “fair wear and tear.” While it’s a common phrase in the rental industry, it can sometimes be challenging to grasp its meaning fully and when it applies. That’s why we’re here to provide you with a clear definition of fair wear and tear and some helpful guidance on handling situations when it goes beyond reasonable use.
What is fair wear and tear?:
The House of Lords defines fair wear and tear as ‘reasonable use of the premises by the tenant and the ordinary operation of natural forces’. However, in the context of residential lettings, this isn’t the most useful definition for landlords and agents; this definition can sometimes be vague and open to interpretation. Fair wear and tear refers to the progressive deterioration or ‘damage’ to the rented property and its contents, fixtures, and fittings caused by a tenant’s normal and reasonable use.. The following guide will help shed some light on what fair wear and tear is and whether damage to the property falls under the umbrella of the term.
Examples of fair wear and tear:
It’s important to distinguish fair wear and tear from damage caused by tenant misuse, negligence, or intentional actions, which the tenant should be held responsible for. Examples of fair wear and tear can include:
- Faded paint or wallpaper
- Small scuffs on walls or floors
- Worn carpets or curtains
In essence, any damage that arises from regular use and cannot be attributed to a specific incident or tenant misuse is considered fair wear and tear.
However, it is important to note that fair wear and tear is not always clear. When assessing fair wear and tear at the end of the tenancy, you must make adjustments for the following:
- Age, quality and condition of any item at the start of the tenancy
- Average useful lifespan of the item
- Reasonable expected usage of such an item
- Number and type of occupants in the property
- Length of tenancy
For instance, a carpet that multiple tenants have used over five years is likely to show more signs of wear than a carpet in a single-person tenancy. Similarly, if certain items were already worn at the start of the tenancy but are now perceived as damaged, they may still fall under fair wear and tear.
When does fair wear and tear exceed acceptable limits?:
When assessing a property at the end of a tenancy, the key is looking for damage beyond what can reasonably be attributed to normal use. Some examples of such damages include:
- Carpet or wall stains that cannot be removed by cleaning
- Holes or tears in curtains or blinds
- Broken or damaged furniture and appliances
- Flooring with deep scratches or gouges
- Water damage or mould caused by tenant negligence
If the landlord believes that the damage caused by a tenant exceeds fair wear and tear, they do have the right to deduct the cost of repairs or replacement from your deposit.
However, it’s crucial for you to approach this assessment with fairness and reasonableness. You should provide your tenant with an itemised list of deductions and give them an opportunity to dispute any charges. We protect our deposit through the Deposit Protection Service’s Custodial Scheme, which has a free Dispute Resolution Service.
Betterment and apportionment:
To avoid betterment, consider apportionment. If any damage surpasses fair wear and tear, you must refrain from increasing the property’s value (betterment). Landlords are not entitled to be financially or materially better off when a tenancy expires.
Any tenancy deposit deductions must consider reasonable wear and tear, as well as whether repair or replacement is the best solution. The expense of the remedy must then be split fairly between you and the renter (apportionment).
Calculating deductions:
Here is an example for making a deduction on a carpet:
EXAMPLE: A stain on the carpet (Repair).
If the cost of cleaning the carpet is £50 and you decide to replace it, you cannot legally charge the tenant for the entire cost of the new carpet. The expense should be shared between you and the tenant. For example, if a new carpet costs £500, you should pay £450, and the tenant should pay £50 (for cleaning).
EXAMPLE: Severe damage to the carpet (Replace).
If the carpet damage is severe enough to influence the property’s quality and achievable rent, the best solution is to replace the carpet. However, charging the tenant the entire replacement cost is unjust, so you must split the expense with the tenant.
Betterment Formula:
The following formula from Propertymark considers the value and lifespan of the carpet and splits the purchase cost over the lifespan. The same formula can be applied to other items in your property.
| A | The replacement cost of a similar carpet | £500 |
| B | Age of carpet | 2 years |
| C | The expected lifespan of the carpet | 10 years |
| D | The remaining lifespan of carpet (C – B) | 8 years |
| E | Annual depreciation (A ÷ C) | £50 per year |
| F | The apportioned cost to the tenant (D x E) | £400 |
The expected lifespan of the carpet should reflect the conditions outlined under fair wear and tear, such as the number and type of occupants. You should keep evidence of the calculation with a copy of the original purchase invoice and explain how the expected lifespan of the asset was calculated (e.g. manufacturer’s guarantee); this is important in the event of a dispute with the tenant.
Top tips to prevent disputes:
To prevent potential disputes at the end of a tenancy, we recommend the following:
Inventories: Conduct a thorough check-in and check-out inspection, documenting any existing damage or wear and tear in detail. Having an inventory and check-in process helps establish a baseline, making it easier to determine what qualifies as fair wear and tear at the end of the tenancy.
Mid-Term Visits: By conducting mid-term inspections every three or six months, you’ll have the opportunity to identify any issues and address them promptly. This proactive approach allows for timely repairs and helpful advice on common problems like condensation, avoiding potential worsening issues until the tenancy’s end.
Communication: Maintaining a positive relationship with your tenants right from the start and providing them with clear guidance on how to take care of the property can make a world of difference. It’s important to communicate your expectations during their tenancy and let them know the best ways to reach out to you and report any concerns as soon as they arise.
Break Down your Deductions: When it comes to costs, it can be helpful to break them down and provide a transparent breakdown of how they were calculated. By showing tenants exactly what factors were considered, you can ease any tensions and prevent conflicts. This open communication not only fosters trust but also ensures that everyone is on the same page.
Visual Evidence: When it comes to resolving any disputes, having strong evidence on your side can make all the difference. Whether it’s accompanying check-in and check-out inspection reports or capturing property visits during the tenancy, good visual evidence can greatly assist in any negotiations that may arise. Photographs and video footage are extremely valuable when it comes to documenting physical damage. Whether it’s burn marks, carpet stains, scratches, or damage to woodwork, flooring, or furniture tears and rips, capturing them visually can provide undeniable proof. It’s important to digitally date your photographs to verify when they were taken, or consider using an inventory system that embeds photographs, ensuring their authenticity.
Written Evidence: Besides visual evidence, don’t forget the value of other written records, such as invoices and emails. These documents can provide further support to your claims and help strengthen your position. Evidence that is clearly dated and/or signed by the tenant can serve as a powerful negotiating tool at the end of the tenancy. By making tenants aware of their responsibilities and the potential costs of not looking after the property, you significantly increase the likelihood that they will do their part in maintaining its good condition.
At Rooms in Kent, we understand the importance of effective documentation and communication and providing practical guidance to help navigate potential disputes on behalf of landlords. We aim to ensure you have all the necessary tools and support for a comfortable and hassle-free tenancy experience. Call our friendly team on 01233 367 367, who are happy to help.
