‘Fair wear & tear’ causes confusion for landlords
New figures launched by Belvoir Sheffield, the leading letting agent in Sheffield, reveal an increase in confusion surrounding the concept of ‘fair wear and tear’, with over half of landlords questioned struggling to make a sound judgement call at the end of a tenancy period.
Considered to be a ‘grey area’ by industry professionals, ‘fair wear and tear’ is the traditional technical term used to describe the amount of deterioration (dilapidations) on a rental property at the end of a tenancy.
With a total of 23,500 tenant disputes being logged in 2009 alone, a staggering 92 per-cent of cases were found in favour of the tenant, costing UK landlords an estimated £12 million in lost claims.
Rick Flay, Director at Belvoir Sheffield, who offer a wide range of property to rent in Sheffield, said: “Under the Tenancy Deposit Scheme (TDS), landlords now have to prove their case when keeping a proportion of a tenant’s deposit. An increase in badly prepared inventories and a decrease in landlord education surrounding ‘fair wear and tear’ is making this very hard to do. The UK landlord now has as little as a one in ten chance of winning a dispute against a tenant.
“Our own research shows that landlords in the Sheffield area have a lack of knowledge when it comes to assessing ‘fair wear and tear’. The TDS uses a depreciation guide for fixtures, fittings, and furnishings against which they will measure a landlords loss. For example, a felt back/medium quality carpet is deemed to have an eight year lifespan. Therefore, if a tenant damages the carpet but has lived in the property for three years, and the carpet cost £300, the TDS will only consider £187.50 of the landlords claim, ie the value of the remaining years.
To ensure that landlords are covered in the event of a dispute, it is essential to follow these five simple steps:
• Ensure that your letting agent executes a meticulous and consistent approach to check-ins, check-outs, inventories and interim visits. If a dispute does arise, this will lay the foundation of a successful and uncontested outcome, as it will provide all of the necessary supporting documentation to avoid any dispute.
• Bear in mind that the type of tenants occupying your property will have a bearing on what ‘wear and tear’ you should expect as a landlord. Students or those who spend more time at the property are likely to cause more wear and tear than a professional couple who are only at the property during the evenings and weekends.
• As a landlord, it is perfectly acceptable to ask your agent to add certain clauses to a tenancy agreement relating to the care of specific items. Some landlords will state that any garden areas should be looked after and maintained to a high standard.
• Remember that a formal check-in procedure is essential. Over 70 per-cent of letting agents fail to do this at the start of a tenancy agreement and without this check- in process, the landlord has no way of proving what state the property was in prior to the tenant moving in.
• Ensure that the agent visits the property every 3-4 months to check its condition and report any key changes, as this will add strength to your case.
Rick added, “When landlords come to Belvoir Sheffield, we offer them access to the most up to date legal advice available for free from our legal helpline. We also specialise in creating a professionally written inventory for them, including digital photographs to ensure that they are protected, should a dispute arise.”
Belvoir Lettings Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances and Mortgages.
For more information on ‘Fair wear and tear’, visit: belvoirlettings.com/sheffield