Landlords who are unable to distinguish between fair wear and tear and damage are likely to raise disputes over negligible wear. The AIIC suggests that the appropriate knowledge would help lessen the number of landlords and tenants who end up in dispute.
Landlords who do not have a track record of their home will have difficulty backtracking the original condition at the start of the tenancy and comparing this with its condition at the end. This will put them in jeopardy and make them more likely to lose disputes.
The AIIC is adamant that relying on inventory clerks who are trained to understand fair wear and tear can protect tenants and landlords but also reduce unnecessary disputes. Landlords and tenants who educate themselves about wear and tear can lessen the number of unwarranted cases, the body claims.
The criteria for fair wear and tear
The term fair wear and tear describes the deterioration of the condition of the property as a result of reasonable use by the tenant.
Damage caused by negligence does not fall under this criteria, but items, fittings, or fixtures that have been worn through natural use would be classified as fair wear and tear.
When the wear and tear of a home is assessed, average useful lifespan of the item, expected usage of such an item, who is renting the home and the length of the tenancy are all considered.
Daniel Evans, chair of the AIIC, explains: “Landlords and tenants must educate themselves on the differences between fair wear and tear and damage. Disputes that confuse the two cause unnecessary hassle among all parties involved.”
“The criteria for deposit deduction must be properly understood before raising any disputes. The underlining rule is that deposits cannot be kept for damage caused by fair wear and tear.”
“This criteria ultimately seeks to protect and prevent the landlord from ending up in a better position than they would otherwise have been. We encourage tenants to familiarise themselves with wear and tear and report any damage they find right away. We also recommend landlords to make sure every tenancy agreement is accompanied by a professional inventory.”
Inventories are capable of reducing disputes
Mydeposits report that, in 2021, rental deposit disputes between landlords and tenants amounted to a costly £27 million. This totals an average of £1,005 per tenancy.
Evans insists that the extortionate amount of money that gets wasted due to unnecessary deposit disputes could be reduced if better understanding of fair wear and tear was commonplace.
Evans continues: “Inventories are the only viable source of protection for all parties when determining if the damage is beyond fair wear and tear. These allow the issue to be easily identifiable among landlords and adjudicators.”
“We recognise that deposit disputes cannot be prevented altogether but if issues arise, the only way to ensure the right amount of money from the deposit is received is by relying on an inventory.”
“Those who choose to deduct money from the deposit must have sufficient evidence that proves the status of the home at the start, duration, and end of the tenancy. Inventories provide exactly this and as a result, play a fundamental role in reducing the number of disputes,” he claimed.
“Landlords can do their part by making sure all the correct information and documentation is provided throughout the tenancy. This will ensure that adjudicators have sufficient evidence and neither parties are left to bear the brunt of unnecessary costs.”
He concluded: “Overall, inventories provide supporting evidence that clarifies what does and does not count as fair wear and tear. Nonetheless, it is essential that before entering into a tenancy agreement, all parties have a firm understanding of this issue.”
