Identifying Fair Wear and Tear vs Tenant Damage

Landlords should expect wear and tear in their buy-to-let properties, as it’s an inevitable part of renting out your home. However, it’s important to differentiate between fair wear and tear and tenant damage.

Image of landlord checking tenant damage.

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Although no clear rules are in place on what constitutes “fair wear and tear”, a general definition provided by the House of Lords states it should be caused by the “ordinary operation of natural forces” and “reasonable use of the premises by the tenant”.

 

What is fair wear and tear?

This refers to the gradual flaws and damage that are likely to occur naturally in a property over a period of time. Examples of inevitable damage can include fading curtains, carpets gradually becoming worn, or small scuffs to furniture.

If the items were already slightly worn at the start of a new tenancy and their condition gradually deteriorated over a period of weeks or months through normal use, this could be considered “fair wear and tear”.

The term traditionally refers to the general condition of the property and landlord furniture and doesn’t include the cleanliness of individual items, which is a separate issue. For example, if you’ve provided furniture and tenants have used it irresponsibly, such as letting muddy pets jump on the sofa, they may lose part of their deposit if they don’t return it to the original level of cleanliness.

 

When is damage beyond normal wear and tear?

Damage caused to the property or furniture through the tenant’s reckless, careless or negligent behaviour is not classed as fair wear and tear. In these cases, the person responsible for the damage is responsible financially to fix it.

For example, a worn carpet over time is inevitable, but if the carpet is ripped due to the tenant’s negligent behaviour, they are liable to replace it. Similarly, if a kitchen worktop is worn, this can be expected with daily use, but if it has burn marks running across it, this can be classed as damage.

Establishing whether any damage exceeds “fair wear and tear” is important. To do so, take into account the product’s age, quality and lifespan and how many tenants are using it to determine whether it has worn out naturally. You can also consider how many pets are in the property and whether they have caused any excessive damage.

Take into account the length of the tenancy; if items are worn after a five-year tenancy, this is to be expected, but there should be considerably less wear and tear with a six month let.

 

Landlord repair obligations

Understanding the law when it comes to rectifying problems is the key to a good relationship with tenants. Landlord repairs responsibilities and tenant obligations in relation to the property’s condition, including furniture, must be put in writing in the tenancy agreement at the outset to avoid confusion and issues later.

A landlord is ultimately responsible for keeping rental properties well maintained and in a state of good repair, while tenants also have an obligation to look after their home, as outlined in the tenancy agreement. Tenants can’t be held responsible for natural deterioration caused by wear and tear as the property becomes older.

Should any damage occur, establish the nature of the issue and why it has happened. Discuss this with your tenants and agree on an amicable solution to prevent disputes. Around 3% of tenancies in the UK end in disputes that go before the Tenant Dispute Service, with cleaning and damage issues causing 50% and 44% of claims respectively. The 2023 report by the National Residential Landlords’ Association reveals cleaning and damage claims have been top of the list since 2017.

 

How to protect yourself from disputes

At the start of the tenancy, compile a detailed check-in inventory report with written details of the property and its contents and agree this with the tenant. During the tenancy, keep a record of everything you do to keep the home well maintained, keeping emails, invoices and receipts.

If a dispute arises, the burden of proof is on the landlord to show you took measures to rectify issues, so these will be used as evidence in your favour. However, try to avoid this happening by having good channels of communication with tenants and dealing with complaints promptly.

Always keep the property well maintained with preventative measures rather than reactive actions. When replacing items, such as furniture, ensure you do so like-for-like, avoiding spending more money on costlier items, even if the tenant says they will foot the bill for the difference.

By law, a landlord isn’t entitled to end up materially better off when the tenancy ends, so should a situation result in a dispute, it could cause further issues if the tenant’s money is tied up in furniture.

Perform regular inspections to keep on top of any problems. At the end of the tenancy, compile a check-out inventory to compare with the check-in one and agree this in writing with the tenant.

 

Can landlords charge tenants for damage?

If any damage has occurred to the property or contents that are outside the fair wear and tear bracket, the landlord can charge tenants a reasonable amount for repairs. For example, if tenants ruin a carpet by spilling drinks on it, the landlord can charge them a sum towards having it cleaned or replacing it with a new carpet but they can’t charge them for a brand new carpet.

Before returning the tenant’s deposit when they leave, the landlord must perform a thorough check and deduct a reasonable sum for damage or cleaning if the property is excessively dirty due to the tenant’s irresponsible conduct. If necessary, landlords can pursue compensation from errant tenants through the small claims court.

In the event of a dispute, the evidence goes before an independent adjudicator through the Tenancy Deposit Scheme, who will make a ruling within 28 days. Both the landlord and tenant can submit evidence in support of their argument.

It’s better to keep a handle on wear and tear and ensure the property is looked after during the tenancy, communicating amicably with tenants, rather than getting to the point where a legal dispute is the only option.

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