Betterment

Betterment is when a landlord ends up in a better position than before a tenancy because of a claim against the tenant, rather than simply being compensated for loss. In UK renting, the concept appears most clearly in deposit disputes and repair claims.

You are entitled to claim for damage or excessive wear caused by the tenant, but you must not use their money to replace old items with brand new upgrades at the tenant’s expense. For example, replacing a ten year old, budget carpet with a top end new one and charging the full cost from the deposit would usually be treated as betterment.

Adjudicators, ombudsman schemes and courts expect landlords to factor in age, quality and lifespan of items, plus fair wear and tear. A common approach is to apply a reasonable allowance or apportionment, so the tenant only covers the remaining value they have actually “used up”.

Under the Renters’ Rights Act 2025, which stress fairness and evidence in how deposits and deductions are handled, unjustified betterment can count against a landlord in deposit disputes and enforcement action. Good landlords therefore keep invoices, inventories and photos, and make proportionate, well explained claims rather than aiming to improve the property at the tenant’s cost.