Understanding Property Damage
One of the top concerns for landlords (outside of receiving rent on time) is for the tenant to care for the property.
While most of the time, managing the tenant and property goes smoothly, there can be isolated situations that are out of our control, which we must navigate and manage.
During the tenancy, it is the tenant's responsibility and obligation to care for the property, while the owner must maintain the property in accordance with minimum standards. When a tenant enters into a tenancy agreement, a detailed property condition report, supported with photos, is completed as evidence. This report is signed by all parties involved to minimise any potential disputes.
When the tenant vacates the property, legislation dictates that it must be left in the same condition as it was at the commencement, taking into consideration fair wear and tear, which is defined as damage or deterioration that naturally occurs through the regular use of the property, such as worn-out patches in the carpet from daily walking, as well as exposure to natural forces like sunlight or rain.
However, in some situations, determining what constitutes tenant damage and who is responsible can be a grey area. To assist our landlords in understanding property damage, it is essential to know the different types.
Accidental damage is considered damage resulting from an unforeseeable or unintentional event. This type of damage could include stained carpets from spills, a scorched benchtop from a hot pot or hair iron, or cracked tiles due to a heavy object being dropped on them.
Malicious, deliberate, and intentional damage, while they may sound similar, they are considered different forms of damage. Malicious damage involves malicious intent behind the damage, such as a punched hole in a wall, smashed windows, graffiti, or removing appliances. Deliberate and intentional damage occurs when the tenant damages or alters the state of the property without obtaining written consent, such as putting holes in walls for picture hooks, erecting shelving, removing floor coverings, DIY renovations, or installing locks and other fixtures.
It is important to note that all damage to the property beyond fair wear and tear is the responsibility of the tenant to repair, fix or rectify.
In the event of a dispute over damage, or if the tenant leaves the property with a debt exceeding the bond and fails to cover the repairs, the matter can be brought before the tribunal courts for an order to pay.
If a disputed matter goes before the tribunal courts, it is essential to be aware that the registrar or magistrate will consider factors such as the type of damage being claimed, the age of the item, how many tenants resided in the property, and the length of the tenancy term. Unfortunately, there is no definitive rule for the outcome when claiming tenant damage through the tribunal courts.
For instance, if the tenant has spilled red wine on the living room carpet, the tribunal courts may (depending on the circumstances) allocate a percentage of the replacement cost, considering the age of the carpet and depreciation.
For peace of mind regarding property damage, we highly recommend investing in Landlord Protection Insurance, which often costs less than a week's rent.
Francesca Luccitti
Principal
0430 393 396
[email protected]
www.cumberlandrg.com.au
Shop 8, Greystanes Shopping Centre Greystanes NSW 2145
181 Dunmore St Wentworthville NSW 2145