When tenants make changes or improve the property, who owns the upgrade?

A tenant repaints the kitchen in a colour you never would have chosen, another fits shelving in the bedrooms, a third installs a new shower over the bath and leaves it behind when they go. These situations are becoming increasingly common, and with the shift to assured periodic tenancies under the Renters' Rights Act, they are only going to occur more frequently as tenants stay longer in their rental homes. Drawing on adjudication experience, TDS sets out how these situations are approached, what landlords can recover from the deposit, and what they can do now to protect their position before a problem arises. 

What counts as a tenant improvement?

An improvement is any change a tenant makes to the property that alters its condition, appearance or function beyond simple maintenance. Unlike repairs, improvements are discretionary changes - and their legality depends on whether the landlord gave prior written consent. A verbal agreement is not sufficient and will not be treated as consent by a TDS adjudicator. 

Why this matters more than ever under the Renters' Rights Act

From 1 May 2026, all tenancies in England became assured periodic tenancies, rolling arrangements with no fixed end date. Tenants now have greater security, with the ability to remain in a property for as long as they wish, providing two months' notice when they choose to leave. This means there is no longer a defined end point at which a landlord can plan for reinstatement, making it even more important to address unauthorised changes during the tenancy rather than waiting for a checkout that could be years away. Mid-tenancy inspections and written communication become your primary tools for managing this risk. 

Three scenarios from TDS

Scenario 1

The tenant redecorates without permission 

What happened 

A tenant repaints several rooms in bold colours without asking. The landlord claims the full cost of returning the property to neutral décor. 

How adjudicators approach this 

This is where many landlords are surprised - and frustrated. The key factor is not simply that the tenant painted without permission, but when in the tenancy it happened and what condition the walls were in before. TDS guidelines set the expected lifespan of decoration at three to five years. If the property was freshly decorated at the start of a short tenancy, the adjudicator is likely to award the full or near-full cost of repainting to neutral because the landlord has suffered a genuine, evidenced financial loss with considerable residual lifespan remaining. 

However, if the decoration was already four or five years old and the tenancy ran for several years, the landlord would likely have needed to redecorate at some point regardless. In that scenario, only a contribution and not the full cost is likely to be awarded, reflecting the remaining useful life of the decoration at the point the tenant left. 

The solution: Photograph every room at check-in, noting the colour and condition of walls. Include a specific clause in the tenancy agreement stating that no repainting is permitted without written consent, and that if consent is given, walls must be returned to the original colour and standard before departure. If you discover repainting during a mid-tenancy inspection, address it in writing immediately - do not leave it until checkout. 

Scenario 2

The tenant installs fixed shelving and leaves it behind 

What happened 

A tenant builds large shelving units fixed to bedroom walls without permission, believing them to be a useful addition. At the end of the tenancy, they leave the shelves in place, the landlord wants them removed and the walls made good. 

How adjudicators approach this 

The tenant has made an unauthorised structural change and left damage to the walls beneath the fixtures. The adjudicator awards the reasonable cost of removal and targeted repair of fixing points, but not the cost of repainting the entire room if only specific areas are affected. Anything permanently fixed to the property becomes a fixture and belongs to the landlord, but a landlord cannot simultaneously keep an improvement and claim the cost of it from the deposit. 

The solution: Your tenancy agreement should state clearly that no fixtures may be installed without written consent, and specify that if consent is granted, the tenant must either remove the item at the end of the tenancy or leave it in place as agreed in writing. A mid-tenancy inspection is the right moment to spot and address this, not checkout. 

Scenario 3

The landlord agreed to alterations, but not in writing 

What happened 

A tenant claims the landlord told them verbally they could make changes to the garden. The tenant removes patio slabs and replaces them with decking, which they then take with them when they leave. The landlord claims the full cost of new patio slabs. 

How adjudicators approach this 

The tenant is found to be in breach; no written consent was given and the patio was removed without permission. However, as the original slabs were already cracked at check-in, the award reflects the original condition rather than the cost of brand-new replacement. The landlord receives a partial award only, as claiming new slabs for old cracked ones would constitute betterment. 

The solution: Never agree to alterations verbally. Always confirm consent in writing, specifying exactly what is being agreed, the standard to which it must be carried out, and the condition in which the area must be left at the end of the tenancy. This written record is the cornerstone of any future claim. 

Does a landlord own an improvement a tenant leaves behind?

Generally, anything permanently fixed to the property becomes a fixture and passes to the landlord when the tenant leaves, unless a written agreement states otherwise. However, adjudicators will not allow a landlord to benefit from an unauthorised improvement and also claim its cost from the deposit. The landlord's remedy for an unauthorised alteration is reinstatement to the original condition, not both reinstatement and retention of the upgrade. 

A note on betterment:

When making a deposit claim, it is worth bearing in mind that awards are based on the actual loss suffered rather than the cost of replacement on a new-for-old basis. Where an item was already showing some age or wear at check-in, the award will reflect its condition and remaining useful life at that point. Understanding this principle before submitting a claim helps landlords set realistic expectations and present evidence in the most effective way. 

What landlords should do now

• Review your tenancy agreement to ensure it includes a clear, specific alterations clause. Vague wording such as "no changes without permission" is better than nothing, but specifying what requires consent, the standard required and the end-of-tenancy obligations is far stronger. 

• Photograph every room, wall, floor and external space at check-in, annotated, dated and signed by the tenant. 

• Carry out regular mid-tenancy inspections and address any unauthorised changes in writing immediately. Under assured periodic tenancies, this is your primary opportunity to manage the property's condition. 

• If you agree to a tenant's request to make changes, confirm it in writing - specifying what is agreed, to what standard, and whether it must be reversed before they leave. 

• Keep receipts and records for all items provided, including decoration. Without evidence of age and original cost, adjudicators will apply depreciation based on assumed medium quality. 

For further guidance on managing tenant alterations and avoiding deposit disputes, visit the TDS help centre or download the TDS and NRLA guide to property inventories. 

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