A smooth end-of-tenancy process is the goal for all parties. However, disputes over what can be rightfully charged often arise. To maintain your reputation as a fair and transparent business, it’s essential for agents and landlords to understand what can be legitimately charged at the end of tenancy. In this blog, we’ll clarify some key examples to guide you through the process.
Unpaid Rent and Bills
One of the most straightforward charges is for unpaid rent. If a tenant has missed rent payments, these can be charged at the end of the tenancy. Additionally, if the tenancy agreement states that the landlord is responsible for paying utilities or council tax and the tenant must reimburse the landlord, those costs can also be charged.
Damage to the Property
Charges can be applied for any damage that goes beyond normal 'fair wear and tear.' Fair wear and tear refers to the natural deterioration of a property due to everyday use. For instance, worn carpets, faded paint, or minor scuffs are typically considered wear and tear.
However, significant damage - such as burns on carpets, large stains, or broken appliances due to misuse - would warrant a charge. It’s important to remember that all items have a lifespan, and consideration must be given to whether the damage exceeds reasonable wear and tear. If it does, a charge can be raised, but it should reflect a fair contribution towards the item's replacement, accounting for its typical lifespan.
Cleaning Costs
Tenants are expected to return the property in the same condition of cleanliness as noted in the check-in inventory report. If the inventory report identifies cleaning issues at the end of the tenancy, agents and landlords can charge for the cost of cleaning to return the property to the original standard.
However, a professional clean should only be charged if the check-in inventory explicitly notes that the property was professionally cleaned at the start of the tenancy. If the property was simply noted as 'clean' but not professionally cleaned, then only a general cleaning charge would be justified. Adjudicators are unlikely to award a professional clean charge unless this was the standard agreed at the beginning.
Missing or Broken Items
Charges for missing items can be raised when an item noted in the check-in inventory is no longer present at check-out. It's crucial to compare the check-in and check-out reports to ensure accuracy. Similarly, for broken items, clear evidence should show that no damage existed at the start of the tenancy and that the damage at check-out is beyond repair.
When charging for replacements, betterment must be considered and the charge should reflect the item’s age and condition at the start of the tenancy. Full replacement costs are unlikely to be justified unless the item was new at the time of check-in, and even then, the duration of the tenancy will need to be considered. Any charge should contribute to the item's replacement, taking into account wear and tear over time.
Redecoration
Charges for redecoration are justified when there is deterioration beyond what would be expected as normal wear and tear. This could include excessive marks on walls, large holes from hanging items, or areas where paint has been stripped.
When considering redecoration charges, agents and landlords should cross-reference specific areas with the check-in inventory. It’s also essential to consider the time since the property was last decorated and the typical lifespan of paintwork or wallpaper. A charge should contribute proportionately to the redecoration costs based on these factors.
By following these guidelines and considering factors like fair wear and tear, lifespan, and clear evidence, agents and landlords can ensure a smoother, fairer end-of-tenancy process. If you’re considering raising charges, our Betterment and Fair Wear & Tear Calculator can help you assess the appropriate contribution based on the quality and average lifespan of household items.
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