Wear and tear or damage?

What is the difference between ‘wear and tear’ and ‘damage’ when renting your property? It’s a question asked by many landlords and tenants, and can be quite confusing to understand. There can be disagreements about who is responsible to pay for damages to a rented premises, should it occur, and tends to occur at the end of a tenancy agreement.

Watch this video, as Joanne Danckwardt of One Agency JD Property Agents breaks it down a little if you are struggling with the fine line between fair wear and tear vs damage in your rental property.

If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence.

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What is “fair wear and tear”?

According to NSW Fair Trading, wear and tear means the normal deterioration of a property from ordinary, everyday use. It is defined as reasonable wear that occurs in a property due to the ordinary day-to-day use by a tenant. Exposure to the elements, time, as well as day to day living in a property can cause fair wear and tear – it is not caused intentionally. Common occurrences of wear and tear that a landlord is responsible for include:

• Carpet being worn in high traffic areas
• Faded curtains
• Rusting of gutters due to rain
• Timber window frames fading due to sun exposure
• Cracks in walls due to movement
• Water stain in carpet from leak

What is damage?

Damage caused by tenants isn’t the result of ageing or normal use. It is something that is done to break, harm, or destruct parts of the property through misfortune, negligence, carelessness or abuse. It can also potentially be deemed damage if a Tenant does not report a maintenance matter, and the initial problem goes on to cause further extensive damage to the home. Damage can be classified as accidental, or malicious.

Accidental damage occurs due to sudden, unexpected or unforeseen events, such as children scribbling on walls with a permanent market, curtains torn by a pet, or a smashed window due to children hitting a ball through it. Malicious or intentional damage is when the damage is caused on purpose with intent to destruct. It can be motivated by spite, malice, or vindictiveness with the aim of damaging a property, such as punching a hole in a wall, or graffitiing the property, or even the result of carrying out an act with no malice, but without permission, such as painting a wall a different colour as this would alter the current state of the property or paint damage resulting from removing decorations stuck with Blu-Tac or sticky tape.

Who is responsible?

Fair wear and tear and the cost of repairing is the landlord’s responsibility. This is no different from wear and tear that occurs in all homes, including the home the landlord lives in. It is only when the tenant has been irresponsible, and accidentally or intentionally caused damage to a premises, that they are liable to pay for repairs. If the wear and tear is unreasonable, for example excessive wear due to the property being used for business or illicit purposes without the landlord’s consent or knowledge, then the tenant is responsible for reinstatement. Any damage caused by a tenant, their child, pet or guests, is their responsibility. They have an obligation to repair or replace any damage caused. The Residential Tenancies Act states that it is a tenant’s responsibility to:

• To keep the premises reasonably clean
• Notify the landlord or landlords agent as soon as possible of any known damage
• Ensure their guests do not intentionally or carelessly cause damage.

The tenant should always report any damage; whether they are at fault or not, preferably in writing. wear and tear. If the damage is caused by a third-party not directly connected with the tenant, or the tenant did not invite them onto the premises, or the event was outside of the tenant’s control (eg: traffic accidents, or break-ins), the repairs are the landlord’s responsibility and, depending on the policy, may be covered by insurance.

Avoiding Disputes

Knowing the difference between wear and tear and damage can eliminate a lot of grief. It is important to ensure that the condition of the premises is well documented at the start of the tenancy, via during routine inspections throughout the tenancy and also upon vacating. Thorough rental condition reports, which may include detailed photos and even videos, can be useful for avoiding or settling disputes over fair wear and tear. It is in the best interests of both landlords and tenants to make sure the reports are complete and signed. Routine inspections throughout the tenancy should note the following:

• The lease terms are being honoured
• The property and grounds are being maintained in a clean and tidy condition
• The property is not being damaged in any way
• There are no more than the number of people specified on the tenancy agreement living at the property
• No pets are housed at the property, unless otherwise agreed to

In Conclusion

Fair wear and tear can be determined if it is something that can happen gradually over time, with the normal daily use of a residential home. Damage is something that has been misused, used for a purpose other than it’s intended for; or purposefully damaged.

If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence.

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We hope these tips have been helpful. If you feel you could benefit from our services or experience with property management, we’d love to hear from you. Simply reach out.  We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771 or 0455 147 755. We look forward to talking to you soon.