Deposit Deductions For Damages
If you are one of the many landlords who have to deal with damages at the end of a tenancy, do you know how to calculate this in line with the tenants deposit scheme where the deposit is logged?
The most common damage caused is a burn mark to the carpet and the rectification to decor after items have been removed from walls.
The first thing to know is the life span, most tenancy deposit schemes work on a life span for carpet of 5-7 years depending on the quality of the carpet that was fitted and decorating is approximately a 5 year lifespan.
For this example we are going to say the carpet is a hard wearing carpet and has a lifespan of 7 year and is currently 2 years old. The damage caused is several iron tong marks to the carpet in one specific area.
First thing to do is get a quotation for replacing the carpet like for like, for this exercise the carpet cost is £200. The first calculation to work out is the percentage of loss for the carpet, so take the £200 and divide by 7 which is £28.57. Next times this by 5 for the years lost for the carpet damage £142.86. Now this is where it gets a bit technical because only a small percentage of the carpet is damaged the full £142.86 can't be proposed to the ex-tenants as a cost because a good percentage of the carpet has been left in good condition. Therefore, work out the size of the area compared to the carpet size, e.g 1 6th of the carpet is damaged and divide that £142.86 by 6 giving £23.81. This £23.81 can be proposed to the tenants for the burn marks to the carpet. If the carpet is still usable this £23.81 can be banked for used towards a new carpet as and when.
The same calculations works for decorating.
Always remember when negotiating deposit deductions from a tenants deposit, you can't have a betterment on the condition to when the tenancy started.
If you do have any property related questions please don't hesitate to get in contact.