Landlords and tenants – Do you understand wear and tear?

Wear and tear is often disputed at the end of a tenancy, with many landlords and tenants being unsure about where the boundaries lie.

Essentially, wear and tear can be defined as the gradual decline in the condition of a property’s fabric, fittings and contents. It’s crucial for landlords to properly establish wear and tear at the end of a tenancy, to facilitate a decision about whether you’re entitled to retain some of the deposit. This means that landlords must separate damage from wear and tear. When actual damage occurs, tenants should be charged, for example, where they have made deliberate marks, holes, stains or misused an appliance.

From a tax point of view, it’s also important to understand what’s tax deductible. The law around wear and tear has now changed, meaning that the 10% of rental income that could be claimed every year as an allowance for general wear and tear costs has been replaced by a new system. Landlords can now only claim what they’ve actually spent in that tax year on replacing furniture and furnishings. However, over the longer term, this amount should average out – leaving landlords no worse off financially.

At Redstones, we can expertly advise on wear and tear and deposit issues if you have any queries. Get in touch with our team and find out why our property management services are a step ahead of our competitors.