Do landlords miscalculate the life expectancy of their properties contents?

When assesing compensation at the end of a tenancy calculating the correct shelf life is the most important factor.Once this has been done correctly the whole process of working out compensation becomes so much easier.

However, there are multiple calculations needed for compensation to consider. For example, if a tenant damages a lounge carpet, someone will need to calculate the solution, which could be an allowance to the landlord towards replacing the carpet.  Landlords can’t have ‘new for old’, as this would be classed as betterment.

Pat Barber, Chair of the AIIC explains: “If a carpet cost £500, was new at the start of the tenancy and two ‘twenty something’ professionals lived in the property for two years, the carpet would have had an approximate life expectancy of around five years. The £500 original cost must be divided by five (the life expectancy). This will give an annual depreciation figure of £100 per year. The carpet, now two years old, should have a further three years of life left before the landlord could expect to replace it. This means that the current value of the carpet is just £300.  This is the amount of compensation the landlord can claim against the tenant.

Unfortunately, compensation issues can cause the most arguments between landlords and tenants. We had a recent case where one landlord had received complaints from the owners of the flat below his rented property, about water leaking from above. He arranged to meet his tenant to inspect the en-suite bathroom from which the water leak has seemed to originate. The laminate flooring was badly water damaged and the edges of the panels were bubbling and lifting, indicating a serious water leakage problem. The bedroom carpet adjoining the en-suite also had a large discoloured water stain.  

It appeared that some sort of water leak had occurred and this was a normal wear and tear issue. After checking all pipes and areas under the shower and bath, he could find no problem. Then the landlord had a light bulb moment.  He asked the tenant how he cleaned the flooring and the tenant pottered off, returning a couple of minutes later, with a bucket of hot soapy water. He stood at the door way and simply threw the bucket in the air, emptying the complete contents all over the floor - definitely not fair wear and tear!”