Betterment

In making a claim for tenancy deposit deductions, a landlord is not entitled to betterment. In simple terms, this means a landlord is not entitled to benefit from an improvement or enhancement in value of the property at the tenant’s expense, unless this had been specifically agreed beforehand. Clearly, a landlord would benefit if an award was made on a ‘new for old’ basis. Allowance must therefore be made for the age of an item at the start of the tenancy, the length of the tenancy and the usual life expectancy of the item.

By way of a simple example, if a landlord was to claim for the replacement of a carpet that was ruined by a tenant halfway through its life, the landlord’s loss will at best be for half the cost of its replacement. Conversely, a small mark to a carpet that did not affect its future use/lifespan, and which is not visually significant, may only justify a small award of, say, £50.00 to reflect the damage caused.

Tenants are expected to return the property at the end of the tenancy in a similar condition to that at the start, with allowance made for fair wear and tear. The level of wear and tear to be expected in a rental property is generally higher than that expected in an owner occupied property, due to the more frequent change of occupants. A tenant may not therefore be held responsible for deterioration to the property (other than for cleaning) caused by their reasonable use.

Fair wear and tear can be defined as the level of deterioration that a landlord might reasonably expect a tenant to cause through their everyday normal use of the property over the period of the tenancy. In making a claim for tenancy deposit deductions, landlords must allow for this deterioration, which is not the fault of the tenant. Reasonable everyday usage will be determined by such factors as the length of the tenancy, the different parts of the property and the quality of the property or its contents.

The nature of the tenancy will also be relevant. For instance, a greater allowance should be made for fair wear and tear if a property is let for several years to a family with young children and pets than for a six month let to a single person working full time.

Likewise, the level of wear and tear to be expected to the decorations in a hallway, kitchen or bathroom will be greater than in say a bedroom or study. The level of wear and tear to be expected to a carpet will depend both on its location and on its quality. However any damage that is deemed to be beyond the scope of the tenant’s reasonable everyday use is unlikely to be considered as fair wear and tear.