In cases where the landlord or letting agent has made a claim against a tenant’s deposit in Scotland for damage to property, fair wear and tear and betterment are two concepts that adjudicators will consider before making an award. Both landlords and tenants should ensure that they are well aware of what these two things are and when damage would fall under one of these categories.
Fair wear and tear
Fair wear and tear is the natural erosion of the property, or provided furnishing, over time. All items have a lifespan and it is unreasonable to expect them to last forever, especially for items that are used regularly. Where a claim has been made that relates to damage, the adjudicator will consider fair wear and tear, and its relevance to the claim. In doing so the adjudicator will assess the item in question, what it is, how often it is used and its typical lifespan. They will also look at the length of the tenancy and the number of tenants living in the property as this will affect how often the item is used. Whilst it is important that the property is returned in the same condition as is detailed in the check-in report, exception is made for fair wear and tear.
Faded wallpaper, chipped paint or small scuffs on kitchen units would likely not result in an award for damage as it is typical for these to occur over time. Large dents in the wall, however, are not signs of natural decay and are more likely to be damage caused by the tenant. This is a case that would more likely see an award for damage.
Betterment
After the tenancy is over, the landlord is not entitled to end up in a better position financially than they were at the start at the expense of the tenant. If a damaged item were to be replaced with one of higher value, this would be considered betterment, and any claims that fall under betterment will not be awarded the full cost of replacement. Landlords should instead consider a partial replacement of the affected area, or claiming only for the affected area where a full replacement is necessary. If a landlord makes a claim that would constitute betterment, the adjudicator will take into account fair wear and tear as well as how much damage has been caused proportionate to the original cost of the damaged item, and may make a contributory award rather than the full price of replacement.
A tenant may move out and the landlord finds that there is a stain on one of the carpets that cannot be removed even after a deep clean. This stain was not present when the tenant moved in, and in the check-in report the carpet is described as being in “good condition, free of stains”. The landlord has made a claim for damage to the carpet as a result of the stain. In this case, if the landlord was to be awarded anything it would only be an amount proportionate to how much of the carpet has been damaged. If the carpet was initially purchased for £500 then the adjudicator may award £50 for a small stain as a contribution to replacement. The carpet still functions and is usable, and the landlord would benefit financially at the tenant’s expense if the tenant was to be charged the entire cost of a replacement carpet.
For tenants’ deposits in Scotland, adjudicators will look at criteria such as the quality of the item for which damage has been claimed, its age and expected lifespan and take these into consideration when calculating how much money is a reasonable contribution from the deposit for damages. Landlords should be aware of these points and the scale of the damage proportionate to these factors when making claims for damaged items.
SafeDeposits Scotland is a government approved deposit scheme in Scotland, and is the only scheme based in Scotland. We hold the deposit during the tenancy and return to the tenant at the end of the tenancy when the landlord or letting agent has agreed to repayment. We also provide an impartial adjudication service for tenants and landlords if they can’t come to an agreement.