Was the landlord right to claim for replacement of oil at the end of the tenancy?

Sandy Baston

This month’s case looks at a claim made by the landlord against the tenants’ deposit for re-filling of an oil tank at the end of the tenancy.

The landlord stated the oil level was full at check-in, but half full at check-out. The evidence presented to the adjudicator by the landlord included a tenancy agreement, a check-in report, an undated photograph taken of an oil gauge and an invoice for replacement oil.

The tenant’s response

Contrary to the landlord’s position, the tenants said the oil was returned to a similar level at check-out as at check-in. They stated they had ordered a top-up of oil that was delivered two weeks before the tenancy ended. The tenants presented an invoice to support their comments showing the date on which the oil had been delivered to the property, the number of litres and the cost.

The tenants also said that they were disappointed that certain repairs were not carried out by the landlord during the tenancy, including the washing machine, and that they wished to claim against the landlord for a sum of money for the inconvenience caused.

For the landlord’s claim to be successful, the landlord needed to be able to show the tenants had an obligation within the tenancy agreement to return the property at the end of the tenancy, with the same level or amount of oil that was present for the start of the tenancy and that the tenants’ failed to do so, resulting in a breach of their contractual obligations causing the landlord to suffer a financial loss.

The outcome

The adjudicator was satisfied that the tenancy agreement terms required the tenants to return the oil to the same level at the end of the tenancy as at the start. The adjudicator accepted the check-in report, which confirmed the oil level was full at the start of the tenancy, however, as the landlord had provided an undated photograph showing the oil level when the tenants left, which the tenants disputed, it was unreliable evidence. The date on which the photograph was taken was unknown.

In addition, the tenants also evidenced that the oil tank had been refilled shortly before the end of the tenancy. Without reliable evidence of the oil level at the end of the tenancy, it was impossible to determine how much, if any – given that it was the summer months – of the oil refill had been used. An award could not be made.

So, what are the key points here?

+ A deposit is taken as security for a breach of a tenant obligation. An adjudicator is unable to consider a counterclaim. Here, the tenants claim for a breach of a landlord obligation in relation to failing to repair the washing machine.

+ If a tenant wishes to pursue a counterclaim, then they should do so by other means and may wish to seek independent legal advice.

+ Whilst the tenant may have a contractual obligation at the end of the tenancy to return oil to the same level it was at the start of the tenancy, it remains the responsibility of the landlord to demonstrate, with robust documentary evidence, that a term of the tenancy agreement has been broken and that a financial loss has been incurred.

+ A comprehensive check-in and check-out report to include embedded photographs of the oil gauge as part of the inventory would have shown a comparison of the level of the oil for the start and end of the tenancy.

+ To be useful as evidence, photographs must be date stamped and clearly labelled. If this evidence had been provided by the landlord to support the claim for this case, the outcome may have differed.

If you are interested in further guidance relating to deposit disputes, visit the Information Lounge at TDS to browse further guides.

Sandy Bastin, is head of adjudication services at Tenancy Deposit Scheme (TDS), the only not-for-profit tenancy deposit protection scheme. 

 

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7 Comments

  1. MrManyUnits

    So the tenant wins again.

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  2. Mrlondon52

    Sandy if the tenant signed the Check In report they agreed the oil was full. What am I missing here?

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  3. Bless You

    Car hire companies do it with petrol..  so yes.

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  4. Agent Derbyshire

    If you’ve been in this business for a reasonable period, you’ll know that it’s pretty pointless sending a case to dispute, thankfully, I’ve only had three in five years, all a “slam dunk” in the landlord’s favour as far as I was concerned, lost all three on technicalities such as this. Save yourself the stress and anxiety, just post the tenant a cheque!

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  5. AcornsRNuts

    Proof is required and an independent inventory or a dated photo would have proved the landlord’s case. I have had tenants swear night is day, but simply tell them that the independent inventory clerk’s reports and photos is what DPS will rely on. They back down.

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  6. jeremy1960

    That’ll be the same adjudicator who ruled on one of ours. Tenant left at end of tenancy and took the washing machine, fridge and freezer. All appliances had been replaced just before tenancy started, we were able to supply invoices, ingoing inventory, mid term visit reports and check out report. Adjudicator awarded zero, stating that the appliances were over 5 years old (tenancy lasted 5 years 4 months) and as such the landlord should have budgeted to replace!

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  7. AcornsRNuts

    @ jeremy1960 Trying to reply does not work.  Unfortunately betterment would apply in this case which is why  the landlord was not awarded anything.

    That said I would have challenged the five years. A simple online search suggests 6 to 7 years for a washing machine and a fridge freezer ten years plus.

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