How to calculate dilapidations- Apportioning costs

How to calculate dilapidations- Apportioning costs

If it is deemed that there is damage to the rental property, there is a common approach to calculating costs.

However, before determining those costs to be attributed to the tenant, one should always adhere to the following premise:

The landlord should not end up, either financially or materially, in a better position than he was at commencement of the tenancy, or than he would have been at the end of the tenancy having allowed for fair wear and tear.

1) Cleaning: By far the most common complaint put to tenants regards the cleanliness of a property.

The tenant is expected to leave their rental property in the same condition that they received it in. If the property had been professionally cleaned at the commencement of the tenancy, then the tenant will be expected to have the property cleaned to the same professional standard, including carpets being shampooed and curtains being dry cleaned if applicable.

2) Replacement of damaged items beyond repair.

When an item is damaged beyond repair, the tenant is liable for a proportion of the cost of the replacement. There is a universally accepted formula to calculate this principle, although before explaining this it is vital to outline some of the components of this equation.

Life expectancy of room decorations and various fixtures and fittings:

Decoration:

Hall, landing, stairs                                     between 2 to 3 years

Living rooms                                               approximately 4 years

Dining rooms                                              approximately 6 years

Kitchen & bathrooms                                  between 2 to 3 years

Bedrooms                                                   approximately 5 years

Carpets:

Budget quality                                            between 3 and 5 years

Medium quality                                           between 5 and 10 years

Top quality                                                  up to 20 years.

White goods:

Washing machines                                     between 3 to 5 years

Cooker/ ovens/ hobs                                  between 4 to 6 years

Fridges                                                       between 5 to 8 years

The formula in use:

If we take an example of a damaged carpet that needs to be replaced given that it is beyond repair. The carpet is of medium quality, in the hallway, and is about 2 years old.

(a)	Cost of similar replacement carpet	£600-00
(b)	Actual age of existing carpet	2 years
(c)	Average useful lifespan of that type of carpet	5 years
(d)	Residual lifespan of carpet calculated as (c) less (b) =	3 years
(e)	Depreciation of value rate of carpet calculated as (a) divided by (c) =	£120 per year
(f)	Reasonable apportionment cost to tenant calculated as (d) times (e) =	£360-00

3) Compensation for the reduction in value of an item.

Again there are some generally accepted rules for such items. It should be noted that these figures should be used as a guide only and should not be applied to items that are ruined so that they actually impact the rental value of the property.

A small to medium stain to a carpet or mattress                      £15 - £35 each stain

A small to medium scratch / chip to a work surface                 £10 - £25 each

Cigarette burn to carpet or soft furnishing                                £20 each burn

4) Miscellaneous.

Wasps: if the nest was present on the day of check in it is the landlords responsibility for pest control, if one appears in the middle of a tenancy this would be the tenant’s responsibility.

Ants, slugs, mice: usually a tenant’s responsibility.

Rats: usually the responsibility of the landlord.

Squirrels: these cannot be exterminated during their breeding season, it is usually the landlords responsibility to arrange for specialist pest control.

Bees: See wasps. Swarms must be professionally removed by a bee-keeper as bees are protected.

Bats: these are a protected species and cannot be exterminated, they must be left in peace!

Moths: If present at commencement of tenancy it is the landlords responsibility. If they appear during the tenancy, this would be the tenant’s responsibility.

Finally

In the event of a dispute over the return of deposit monies, remember that each deposit scheme has its own independent adjudication process and like a court of law, is evidence based. An adjudicator cannot ‘assume’ and can only make a decision based on the evidence provided to them. A landlord cannot challenge an adjudication decision unless it is done so in a Court of Law.