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We also provide an impartial adjudication service for tenants and landlords if they can’t come to an agreement.

SafeDeposits Scotland is a government approved deposit scheme in Scotland, and is the only scheme based in Scotland. We hold the deposit during the tenancy and return to the tenant at the end of the tenancy when the landlord or letting agent has agreed to repayment.

Landlords should be aware of these points and the scale of the damage proportionate to these factors when making claims for damaged items.

For tenants’ deposits in Scotland, adjudicators will look at criteria such as the quality of the item for which damage has been claimed, its age and expected lifespan and take these into consideration when calculating how much money is a reasonable contribution from the deposit for damages.

The carpet still functions and is usable, and the landlord would benefit financially at the tenant’s expense if the tenant was to be charged the entire cost of a replacement carpet.

If the carpet was initially purchased for £500 then the adjudicator may award £50 for a small stain as a contribution to replacement.

The landlord has made a claim for damage to the carpet as a result of the stain. In this case, if the landlord was to be awarded anything it would only be an amount proportionate to how much of the carpet has been damaged.

A tenant may move out and the landlord finds that there is a stain on one of the carpets that cannot be removed even after a deep clean. This stain was not present when the tenant moved in, and in the check-in report the carpet is described as being in “good condition, free of stains”.

If a landlord makes a claim that would constitute betterment, the adjudicator will take into account fair wear and tear as well as how much damage has been caused proportionate to the original cost of the damaged item, and may make a contributory award rather than the full price of replacement.

Landlords should instead consider a partial replacement of the affected area, or claiming only for the affected area where a full replacement is necessary.

If a damaged item were to be replaced with one of higher value, this would be considered betterment, and any claims that fall under betterment will not be awarded the full cost of replacement.

This is a case that would more likely see an award for damage.

Betterment
After the tenancy is over, the landlord is not entitled to end up in a better position financially than they were at the start at the expense of the tenant.

Faded wallpaper, chipped paint or small scuffs on kitchen units would likely not result in an award for damage as it is typical for these to occur over time. Large dents in the wall, however, are not signs of natural decay and are more likely to be damage caused by the tenant.

They will also look at the length of the tenancy and the number of tenants living in the property as this will affect how often the item is used. Whilst it is important that the property is returned in the same condition as is detailed in the check-in report,exception is made for fair wear & tear.

Where a claim has been made that relates to damage, the adjudicator will consider fair wear and tear, and its relevance to the claim. In doing so the adjudicator will assess the item in question, what it is, how often it is used and its typical lifespan.

Fair wear and tear
Fair wear and tear is the natural erosion of the property, or provided furnishing, over time. All items have a lifespan and it is unreasonable to expect them to last forever, especially for items that are used regularly.

Both landlords and tenants should ensure that they are well aware of what these two things are and when damage would fall under one of these categories.

Safe Deposits - WHAT CONSTITUTES FAIR WEAR AND TEAR AND BETTERMENT?

In cases where the landlord or letting agent has made a claim against a tenant’s deposit in Scotland for damage to property, fair wear & tear and betterment are two concepts that adjudicators will consider before making an award.

The consequences of a failure to register for landlords are clearly set out in the Antisocial Behaviour etc (Scotland) Act 2004. However, it does not affect the validity of the contractual agreement between the parties.

It does not render the contract void and does not entitle the appellant to avoid paying rent for her period of occupation under the lease….”

resulted in the lease being an illegal contract, which meant that no rent was due.
In so far as landlord registration was concerned, the Sheriff Appeal Court concluded that the statutory regime “establishes criminal penalties where a landlord fails to register….

This case prompted the writer to recall a decision of the Sheriff Appeal Court in AB v CD [2017] SAC (Civ) 32 in which a tenant sought to resist a landlords claim for payment of unpaid rent by arguing that the landlord’s breach of various regulations including absence of registration

If the Appellant’s argument was true, the Appellant would be entitled to stay in the leased address for whatever period she pleased, and without any obligation to pay rent simply because a landlord had not registered with the local authority….”

Sheriff McCartney held the failure of the Landlord
“to register… could have other consequences, but it does not follow that the Respondent cannot seek the orders as granted.

It is this question that was considered by the Upper Tribunal in the case of Patel v Stubbs 2024 UT 55. The tenant sought to argue, amongst other things, that the First-tier Tribunal was wrong in law for granting an eviction order where the landlord registered after the tenancy commenced.

If convicted, landlords face a fine of up to £50,000.

While the absence of a landlord registration is a matter for which consequences might well ensue, does lack of registration have any effect on the tenancy agreement?

Citylets - Landlord Registration

Does absence of landlord registration invalidate the tenancy agreement?
Readers will be aware it is an offence for a landlord to let property in Scotland unless registered with the local authority landlord register.

Why do cows have hooves instead of feet???

Because they lactose