Deposit Deductions

How We Handle Damaged Items During a Tenancy

When a tenant causes damage to a property or its contents, we deal with it fairly, transparently, and in line with industry standards.

Our approach is based on two key principles:

1. No Betterment (Fair Wear & Tear Principle)

2. Sliding Scale Depreciation (Age-Based Compensation)


1. No Betterment

We do not replace or improve items at the landlord’s expense.

This means:

  • A tenant is only liable for the actual loss or damage caused
  • You should not end up with a new-for-old upgrade
  • Compensation reflects the current value of the item at the time of damage, not its original purchase price

Example:
If a 6-year-old carpet is damaged beyond repair, compensation is based on its remaining value, not the cost of a brand-new replacement.


2. Sliding Scale (Depreciation Method)

We use a sliding scale to calculate fair compensation based on the expected lifespan of items.

Each item has an estimated lifespan. The value reduces over time until it reaches zero.

Typical examples:

  • Carpets: 7–10 years
  • Oven / appliances: 5–10 years
  • Furniture: 5–8 years
  • Mattresses: 5–7 years
  • Paint & décor: 3–5 years

How It Works (Simple Example)

  • Item cost: £500 sofa
  • Expected lifespan: 10 years
  • Age at time of damage: 5 years

👉 Remaining value = 50%
👉 Compensation due = £250 (not £500)

If the item is near or beyond its expected lifespan, the compensation may be minimal or nil.


Fair Wear and Tear Is Always Considered

We always distinguish between:

✔ Normal wear and tear (no charge)

  • Faded paint
  • Light scuffs
  • Carpet flattening in walkways

❌ Chargeable damage

  • Burns, stains, or tears
  • Broken fixtures due to misuse
  • Holes in walls beyond normal use

Why This Approach Is Used

This method ensures:

  • Fair treatment for both landlords and tenants
  • No inflated or unrealistic claims
  • Compliance with industry standards and dispute resolution expectations
  • Faster resolution of deposit disputes

It is widely accepted by deposit protection schemes and professional bodies.


Our Approach at Rooms to Let North East

We always:

  • Document property condition at check-in and check-out
  • Use independent evidence (inventory reports, photos)
  • Apply consistent depreciation calculations
  • Resolve issues fairly before escalation

Our aim is always to protect your investment while remaining fair and reasonable to tenants.


Summary

  • Landlords are compensated for actual loss, not new-for-old replacement
  • Items are valued based on age and expected lifespan
  • Wear and tear is not chargeable
  • All decisions are evidence-based and consistent