Accommodation Charges Continued

Depreciation

When assessing a claim for damages, depreciation may need to be considered. This is calculated according to the following formula:

(Cost ÷ Lifespan) x (Lifespan – Age)

·         Cost: how much the item costs to replace with an equivalent item.

·         Lifespan: how long something can reasonably be expected to last with ordinary use.

·         Age: how old the item actually is.

Example: A one year old vacuum cleaner is damaged and needs replacing. We would expect the average vacuum cleaner’s lifespan to be at least three years in a student house. The cost was £99. So:

·         Annual depreciation:                         £99 ÷ 3 years = £33

·         Remaining lifespan:                     3 years – 1 year = 2 years

·         Damages due:                                £33 x 2 years = £66

Below, we have included a basic list of reasonable lifespans for standard items within the context of an average student house.

*Fire equipment does not attract depreciation as it is serviced annually.

Minimum lifespans of items in an average student household

This list has been compiled mostly based on the estimates used by insurance companies. In most cases a minimum lifespan expectation has been used in recognition that a student HMO is expected to be a 'hard-wearing' environment.