But How Should You do the Assessment When You Have Received the Check-Out?
If there is a dispute and neither party can agree then the disputed amount must be retained by agent/landlord with required evidence submitted to the adjudicator for review.
Some Terminology Used in Deposit Assessment
Dilapidations - Tenant dilapidations refer to the repairs, alterations, or reinstatement works that a tenant may be responsible for carrying out at the end of a tenancy, or during the tenancy term as specified in the tenancy agreement. These will be specified in the check-out.
Betterment - When assessing damage a landlord cannot improve or enhance the value of a specific item over what it is worth, they must 'apportion' the damage see below.
Apportionment - This is the process that must be used when an item is partially damages taking account of its original condition and expected useful life - see product lifespan. The apportionment formula must be used.
Use the apportionment formula if an item has to be replaced, see below example.
- Cost of similar replacement carpet/item = £500
- Actual age of existing carpet/item = 2 years
- Average useful lifespan of that type of carpet/item = 10 years
- Residual lifespan of carpet/item calculated as ‘3)’ less ‘2)’ = 8 years
- Depreciation of value rate calculated as ‘1)’ divided by ‘3)’ = £50 per year
- Reasonable apportionment cost to tenant calculated as ‘4)’ times ‘5)’ = £400
Check-Out Report - The back to back audit of the original inventory noting differences and allocating responsibility.
If you need help with check-out assessments or deposits just ask us.
+44 7932 760 563