Understanding the "Depreciation Grid" for furnished rental: Complete Guide

Here's a real-life scenario to help you understand the situation. Imagine a tenant, whom we'll call Sarah, who rented a furnished apartment for five years. When she moved in, the living room had a magnificent carpet in perfect condition. Over time, however, the rug began to show signs of wear in high-traffic areas, a slight fraying at the edges and a few stains. In your opinion, can the owner ask Sarah to pay the bill for a new carpet? 

No, the landlord cannot charge the tenant for the full cost of replacing items such as carpeting, wallpaper, and any coverings that have undergone natural wear and tear during the rental period. The landlord must take into account depreciation based on the item's age, which reduces its value over time. Stains, on the other hand, can be charged to the tenant.

In the case of maintenance or repairs for which the tenant is responsible, the landlord can charge the cost of repair or replacement and deduct it from the security deposit. However, the depreciation grid will mitigate the bill, as the carpet is at least five years old and depreciated.

What is a depreciation schedule (Grille de Vétusté)?

The 'grille de vétusté,' or depreciation schedule, is a fair and objective tool used in France to measure a rental property's natural wear and tear over time. Its impartiality reassures both landlords and tenants, helping them to evaluate the property's condition fairly and determine the tenant's share of repair costs based on the length of their stay.

Note: The theoretical lifespan starts from the item's installation date, not the tenant's move-in date. This underscores the landlord's crucial responsibility to keep records of invoices or receipts for all major items purchased, or work carried out in the rental property. This is why landlords must be diligent in maintaining these records.

When to apply the depreciation schedule?

At the check-out stage, it is the landlord's responsibility to compare the property's condition with the check-in stage.

Entry and exit inventories of fixtures (état des lieux) are not just paperwork. They are a shield of protection for both owners and tenants. These inspections document the apartment's condition at the start and end of the tenancy, providing a baseline for comparing changes and identifying any damage. Then, deductions from the tenant's security deposit can be justified, ensuring a secure process for both parties.

Nota Bene: Suppose the landlord does not draw up an inventory of fixtures on the tenant's departure and takes back the keys. In that case, they cannot deduct any amount from the security deposit, even if damages are noticeable afterward.  

Once the landlord and tenant have identified the damage to repair at the tenant's expense, the concept of natural wear and tear (vétusté) becomes relevant. This is where the 'grille de vétusté' comes into play, helping to distinguish between normal wear and tear and damage that the tenant is responsible for. 

What does the depreciation schedule include? 

The depreciation schedule (grille de vétusté) considers different types of wear and tear on the items in a rental property. Here's a short list of the items generally included in a depreciation schedule:

Elements covered in a depreciation schedule (grille de vétusté):

• Paint, wallpaper
• Flooring (carpet, parquet, and tiles)
• Plumbing fixtures
• Electrical network
• Heating
• Furniture
• Appliances

For each item, the depreciation schedule specifies: 

• Theoretical lifespan (durée de vie théorique): time during which an item is expected to remain in good condition.
• Grace period (franchise): The initial period when the item is not supposed to start deteriorating.
• Annual depreciation rate (taux d'abattement annuel): The yearly rate at which the item wears out.
• Residual share (part résiduelle): The portion of repair or replacement costs the tenant must pay after the item's theoretical lifespan is over (once the rate of wear and tear has reached 100%).

List of everyday items' lifespans in rental properties:

• Paint and Wallpaper: 7 years
• Carpets: 7 years
• Parquet Flooring: 20 years
• Tiles (Floor and Wall): 20 years
• Plastic Tiles: 15 years
• Plastic Tiles (Wet Areas): 10 years
• Plumbing Fixtures: 10 years
• Plumbing (Pipes): 15 years
• Heating Systems: 25 years
• Electrical Networks: 20 years
• Heating Appliances (Electric/Gas): 15 years
• Hardware (e.g., door handles): 10 years
• Sanitary Appliances (e.g., sinks, toilets): 20 years
• Household Appliances: 8 years

Sample Depreciation Schedule (grille de vétusté):

Examples of natural wear and tear: in a furnished apartment

• Worn Carpet: High-traffic areas like hallways or living rooms may show wear and tear over time.
• Faded Paint: Walls may show slight discoloration or fading due to exposure to sunlight.
• Small scratches on walls 
• Loose door handles or hinges due to regular use. (in unfurnished rentals, the tenant is responsible for ensuring that the door handles work correctly, but not in furnished rentals).
• Appliances such as refrigerators, stoves, microwaves, and ovens experience gradual wear and tear, like scratches, even though they are still functioning.
• Furniture Indentations: Carpet or flooring may have indentations from heavy furniture placed in specific spots.
• Deterioration of seals and caulking: Seals in bathrooms or caulking around sinks and bathtubs can show signs of wear and mildew over time. (In unfurnished rentals, the tenant is responsible for cleaning or replacing these elements, but not in furnished rentals.)