Can You Charge A Tenant For Damages?

Aside from arrears, one of the main concerns, which landlords have, is the risk to their property from damage by tenants.

The first thing to remember is that most tenants are responsible people who will care for the home to the best of their ability.

When you have property in highly sought-after areas such as Newham and Romford, there will usually be a bigger pool of prospective tenants to choose from, so comprehensive screening should help reduce the risk of having irresponsible tenants in your property.

That said, some wear and tear, and even damage, is inevitable if you have people living in the property for any length of time.

The key things to remember are:

• You can charge for damages and negligence. You may be able to deduct this from their tenancy security deposit or go through the small claims court – but you will need evidence, and your claim must be reasonable.
• You can’t charge tenants for the normal wear and tear, which will happen to rental properties over time.
• Any landlord charges you make must be fair – you can’t use accidental damage to an ageing item as an excuse to upgrade it to something better at your tenant’s expense.

While that all sounds straightforward, it is certainly more complex in practice. We look at the issue in detail, exploring what every landlord should know about charging tenants for damages.

Before Your Tenant Moves In

If you are decorating or furnishing a rental home for the first time, there are a few things you can do to minimise the repair bill. Furthermore, this will reduce landlord and tenant disputes at the end of a tenancy:

• Decorate the home in neutral colours that aren’t too pale – whites and lights will show marks more quickly.
• The same goes for floor coverings and curtains.
• Buy hard-wearing furnishings and appliances – don’t go for the cheapest, choose what which will last.
• Minimise damage, where possible, with mattress protectors, sturdy doormats, blinds to shut out sunlight, etc.

Inspect Carefully Before They Move In

Your key task as a landlord is to inspect the property thoroughly and prepare an extensive inventory with an itemised list of everything included and its condition. Record all of this with photos and video footage.

In the tenancy agreement, you should also make it clear what you expect of your tenants in terms of taking care of the property – if you require them to look after the garden, for example. State clearly what you expect regarding paying for damage and organising repairs.

It is a good idea to impress on your tenants the need to contact you as soon as possible if any damage occurs. Keep records of all correspondence relating to the damage. You may need this later.

What Is Wear And Tear?

As we’ve said, ‘wear and tear’ and damage are two very different things. You can’t expect to charge your tenants for deterioration, which is part of the natural life-cycle of carpets, furniture and appliances.

Examples Of Wear and Tear

These include:

• Small scuff marks on walls and furniture
• Worn carpets and squash marks where furniture has been standing
• Fading to curtains and upholstery caused by sunlight
• Mouldy bathroom sealant which hasn’t been replaced for a while
• Weathered external paint work

What Is Damage?

Damage includes breakages and destruction caused by negligence, carelessness or deliberate acts by the tenant or one of their guests. Damage can also result from a tenant failing to act promptly about an issue that isn’t their fault, leading to more costly repairs later on – for example, failing to report a leaky gutter, which causes widespread water damage and damp problems.

Examples of damage

These include:

• Red wine stains on carpets – which haven’t been quickly attended to
• Cigarette burns on sofas
• Damage to furniture caused by pets
• Holes in walls created by tenants hanging pictures
• Water damage caused by overflowing sinks or baths
• Blocked toilets or drains caused by flushing nappies or wipes

Damage To Other Properties

If your tenant’s actions damage neighbouring properties – if that overflowing bath affects the flat downstairs, for example – they are responsible, not you, the landlord.

How Much Should A Tenant Be Charged For Damage?

While you can charge for damage to the property and items within it, these charges need to be fair and reasonable. If a piece of furniture is damaged, you can only charge for a like-for-like replacement, based on the value of the original item and its condition.

So, if a rickety old bed becomes damaged, you can’t expect them to pay for an expensive new one, and if your tenant spills wine on a worn carpet, you can’t expect them to pay for carpeting the whole house. However, if they spill wine on a brand-new carpet, and the stain can’t be removed, you may be able to claim for the cost of a replacement in that room.

End of tenancy inventory checks

At the end of the tenancy, landlords should (ideally) inspect the property alongside their tenants, raising any concerns about damage or the conditions of items in the home.

This should be based on the initial inventory/schedule of condition you took when the tenants first moved into the property, alongside any accompanying items or evidence to support the documents. That will help you – and your tenants – be as objective and fair as possible when considering whether any damage is beyond the normal wear and tear.

Conducting this inventory check alongside your tenants ensures that concerns can be raised early – meaning no surprises for you and a heads up if tenants are in disagreement and intend to appeal against your verdict.

Based on the conclusions of these checks, you can either decide to appeal to your tenancy deposit scheme to reclaim the deposit, or simply confirm that the deposit is to be returned to the tenants in full.

When And How To Deduct From A Tenancy Deposit

It’s important to remember that the money your tenant pays as a deposit is their money – you don’t have an automatic right to use it to reimburse you for damage – in any case, by law, you must protect it in a government-backed tenancy deposit scheme.

Charging tenants for damages by claiming from tenancy security deposits is allowed. Still, your tenant must agree to deduct the landlord’s charge for damages. If they don’t believe what you are charging is fair or reasonable, it is up to the scheme’s independent adjudicator to decide. The adjudicator’s word is final, you can’t make a claim through the courts if you don’t agree.

If the tenancy deposit doesn’t cover the damage, you can make an application to the small claims court – you can start the process yourself on the gov.uk website. However, you should definitely seek legal advice about this first.

Frequently Asked Questions

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