Nothing in the Residential Tenancies Act gives a clear definition of "fair wear and tear". Although there is no official list of what's included in "normal" wear and tear and what would classify as unreasonable damage, we thought to create some basic guidelines for both landlords and tenants to help you make the distinction.
What is fair wear and tear? According to Tenancy Services, fair wear and tear is defined as the gradual deterioration of the dwelling and its fixtures used regularly by its occupants.
Fair property wear occurs when a tenant lives in the property how it was intended, regularly cleans and with the best intentions follows the terms specified on the tenancy agreement. Homes are made for living. Therefore, some decline in condition as a result of everyday use should be expected. The longer the tenants live in the property, the more wear and tear could be expected.
Tenants would not be responsible for damage to the property caused by fair wear and tear, it would be the landlord's responsibility to fix it.
Example of what would classify as acceptable wear and tear:
Worn carpets
Faded wallpaper or curtains
Peeling of paint
Loose grouting
Worn kitchen bench-tops
What is property damage?
Damage occurs due to neglect, incorrect use or abuse of rental property. It covers deterioration and issues that can't naturally occur or would need to have happened by accident, negligence or lack of forethought.
Unlike wear and tear, the tenants are responsible for intentional or careless damage. This includes damage caused by the tenant's guests.
In New Zealand, the tenants are responsible for purposefully damaging the property. They are also responsible if the damage is careless. But can only be liable for the cost of the damage up to 4 weeks' rent or the landlord's insurance excess (if they had one), whichever is lower.
Example of what would classify as property damage:
Numerous stains and burns on the carpets
Doors ripped off hinges
Burns on the bench tops
Missing curtains
Chipped sinks
Clogged toilet due to improper use
What if you can't agree? If you discover damage during your regular property inspection or at the end of the lease, it's best to document it with photos and discuss it with your tenants. A great property manager like Rent Square can play a very important role here to keep this discussion professional.
If the tenant and landlord can't agree on the type of damage and who is responsible for its repair, then they either can apply to the Tenancy Tribunal and both will be required to prove their case. The case is usually viewed on the facts and explored on the basis that if a reasonable person occupied the property as it was intended for the same time, would they have ended up with the same damage. If reasonable wear and tear could be expected, the tenant would be protected by the RTA.
It's worth mentioning that the RTA doesn't protect tenants who do not inform landlords about discovered damage. And if the damage gets worse, landlords can request tenants to cover some costs.
Sometimes, the difference between fair wear and tear and property damage can be subtle. You may need to rely on your personal experience, industry knowledge and common sense to decide if the issue at hand is worth pursuing.
Why is an initial property inspection important? Determining the difference between fair wear and tear and damage can be subjective. That's why an initial property inspection is not just helpful but essential to avoid confusion and arguments down the track.
Determining the state of your rental at the start of the tenancy will give you a starting point, something to compare possible issues to at the end of the lease term. This includes identifying any existing damage and wear.
Make sure you have a thoroughly documented initial inspection report with lots of photos of every room. Photos are handier for Tribunal hearings. There is no such thing as too many photos! These images help clarify responsibility should a wear and tear dispute arises during your tenant's occupancy.
Rent Square uses a dedicated app that allows us to create compliant reports from your device with e-signing, unlimited photo uploads, comments, to-dos and much more. If you haven't tried Rent Square Property Management yet, it's never too late to start.
Tips on maintaining your property It's important to remember that as a landlord, you also have a responsibility to maintain the property and ensure it's liveable and in good working order. Don't neglect maintenance requests from your tenants. Maintenance of your property can also be managed by Rent Square.
Negligence caused by landlords can also cause a considerable amount of damage. Make sure you run regular property inspections (every 3 months is recommended) to identify if any maintenance work is required by you and look for any unreported damage to avoid major repairs in the long run. Contact Rent Square today to help you manage your property, do inspections, and take stress off you.
Rent Square Property Management is a leading property management company in Auckland.
Contact: info@rentsquare.co.nz
Comments